FAQs

Debt Consolidation Loans

Debt Consolidation Loans - FAQs

  1. What is debt consolidation?

  2. What is a debt consolidation loan?

  3. How is a debt consolidation loan different from debt settlement?

  4. How is a debt consolidation loan different from hiring a debt consolidation company?

  5. Are you a debt consolidation company?

  6. How do I know if I need a debt consolidation loan?

  7. Do I qualify for the loan?

  8. What kinds of debt can you help me with?

  9. Are your loans unsecured?

  10. Do interest rates change on your loans?

  11. How much can I save?

  12. How much can I borrow?

  13. What can I use the debt consolidation loan for?

  14. How will my credit score be affected?

  15. Are there fees?

  16. What if I become unable to make my payments?

  17. What if I’m late in paying off the loan?

  18. How soon can I get approved?

1. What is debt consolidation?

Debt consolidation is a way of managing debt that combines different debts into one balance. This simplifies your payment schedule and can save you money with lower rates of interest.

2. What is a debt consolidation loan?

A debt consolidation loan is a personal loan for consolidating your debts. They usually have terms lasting between 24-72 months and interest rates between 10% and 32%. If you are carrying debts on multpile high interest accounts, for example credit cards, then getting a lower interest loan is a good way to reduce the interest you pay.

3. How is a debt consolidation loan different from debt settlement?

Debt settlement negotiates with creditors to get you a lower balance. A consolidation loan transfers your accounts to a single balance by paying off your creditors.

4. How is a debt consolidation loan different from hiring a debt consolidation company?

With a debt consolidation loan, you borrow money to pay off unsecured debts. With debt consolidation companies, you make payments to an agency which manages your balances.

5. Is DebtKO a debt consolidation company?

No. We offer debt consolidation loans through a network of preferred providers and specialize in debt settlement programs, the more aggressive way to eliminate your debt.

6. How do I know if I need a debt consolidation loan?

Often the main drier for a debt consolidation loan is if you are paying high interest rates or if you’re around $10k or more in debt.

7. Do I qualify for a debt consolidation loan?

Anyone with good credit should, in theory, qualify for a debt consolidation loan. You’ll also need enough monthly income to assure lenders you’ll make your payments.

8. What kinds of debt can you help me with?

Most types of unsecured debt.

9. Are these personal loans unsecured?

In most cases, yes.

10. Do interest rates vary on debt consolidation loans?

Typically debt consolidation loan interest rates vary between 10% and 32%. It is harder to find a loan provider if you’re FICO credit score is bad and you have a poor record of making on-time payments.  

11. How much can I save in interest?

This depends on your ability to make monthly payments. You can use our debt consolidation loan calculator to give yourself an estimate of interest costs.

12. How much can I borrow?

Your credit profile determines how much you may be able to borrow for a debt consolidation loan.

13. How can I use the debt consolidation loan?

Debt consolidation loans are designed to consolidate your unsecured debts. If there’s remaining money, it’s yours to use as you wish.

14. How will my credit score be affected?

Over time, you can improve your FICO credit score by making on-time, regular payments paying off a loan. However, it also depends on the specifics of your situation and how well you manage all of your credit accounts.

15. Are there fees?

Many loans have various fees and these fees vary according to your credit score and other related factors. Arrangement fees, late payment fees, interest fees are all types of fees applied to loans.

16. What if I become unable to make my payments?

All unsecured loans are subject to collection per the lender’s service agreement. If your circumstances change, for example you experience a financial hardship, debtko offers customers help with debt relief programs.

17. What if I’m late in paying off the loan?

Many loans have various fees and these fees vary according to your credit score and other related factors. Arrangement fees, late payment fees, interest fees are all types of fees applied to loans.

17. How soon can I get approved?

We aim to get you approved within 24-72 hours. This does depend on your personal and financial circumstances.

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Telephone: +1 833 433 2856

Email: info@debtko.com

SMS: +1 562 444 6828

Mailing Address:

701 Pine Avenue #146 

Long Beach, CA 90813

 

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Debtko is not a Finance Company, Law Firm, Debt Settlement or Debt Consolidation Company. Our Services include debt and credit evaluation for the purpose of advising our clients which services they may qualify for and connecting them with a 3rd party referral partner that may be able to help. Debtko is not responsible for the future outcome of any resulting relationship between a client and a 3rd party service provider. 

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