When looking for a debt consolidation loan you need to know a few things before you begin. Life House Funding can help you understand the benefits of consolidating your debt into one low monthly payment. Life House Funding will help you determine what loan option is best suited for your unique situation.
Most people don't realized but searching for a debt consolidation loan is very different than searching for any other type of personal loan. Most people think you can just walk into a local bank apply and walk out with a debt consolidation loan. Unfortunately things are very different. When you are consolidation your debt, most banks ask why. Because most people only consolidate debt when they get into trouble, banks can view this as a high risk loan.
Also, a key difference in applying for this 20000personal loan vs others is they way a lender views the loan itself. Some banks will consider this loan and an additional obligation or payment each month. Although you may using the money to pay off an existing debt, the lender has no guarantees the funds from the loan will actually go to paying down the debt. Because of this, the banks will consider that you are taking out another loan and therefor will have an even higher DTI. If the lender you are applying to views debt consolidation loans this way, then you will want to make sure you have enough funds each month to cover the extra payment. If the lender you are applying takes into account that you will no longer be making the credit card payments and instead will only be making the one payment, they will often times want to pay off your other creditors directly. This allows the bank to know the credit cards actually go paid off.
In most cases the best way to determine if a bank takes your new debt payment into account is by their advertising. If a lender has debt consolidation listed on their site, then they probably will swap out the payments. If the lender only advertises a personal loan, they will probably consider your consolidation loan as and additional loan payment.