A debt consolidation program works to simplify life for the consumer by replacing a number of bills with one lower monthly payment.
For example, a consumer with four credit card bills can get a debt consolidation loan to pay off the credit cards, resulting in one payment, rather than four.
A debt consolidation loan is a single loan (generally from a financial institution) that allows you to repay your debts to several or all of your creditors at once.
You are then left with only one outstanding loan — to the financial institution.
In addition to streamlining your debts into a single payment, a debt consolidation loan may also offer you an interest rate that is lower than that charged by your creditors saving you money in interest charges.
This option can be especially attractive if you have outstanding debts at a relatively high rate of interest (for example, those charged on some retail store cards or credit cards).
With a consolidation loan, you can consolidate and pay off debt, and get out of debt faster.
Debt consolidation loans are one option that allow debtors to pay off their consumer debt with single affordable monthly payments.You can remove all local shared objects created by CIBC Flash tools from your computer using instructions found here.The calculation is based on the information you provide and is for illustrative and general information purposes only.Contact several financial institutions before you choose a consolidation loan since the interest rates offered by competing financial institutions may vary.This option may be suitable for debts such as those relating to credit cards, public utilities or other consumer loans.