The facility of taking loan under debt consolidation plan is a great way to control your personal debt. Accordingly, choosing a suitable debt consolidation plan will not only pull you out of financial debt trap but also alleviate your stress.
Need is to compare interest rates and additional features of various DCPs of various banks and FIs and choose the best debt consolidation plan. Usually, debt consolidation loans come with one-time processing fee and flat interest rate, to be repaid in 1 to 10 years of time. Since, your high interest rate loans will be merged together into one loan of lower interest rate; it is prudent to find DCP with lowest possible interest rates and processing fee to keep your monthly payment simple, reasonable and convenient.
Debt consolidation is a form of debt relief that allows an individual to combine all of their debts into one, more manageable loan. This loan is then repaid over time to the lender.