You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. There’s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. The loans that were consolidated are paid off and no longer exist.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.Consolidated credit companies are another name for credit counseling agencies.They advise consumers on budgeting and discuss options available for eliminating debt.However, there are specific instruments called debt consolidation loans, offered by creditors as part of a plan to borrowers who have difficulty managing the number or size of their outstanding debts.
There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. Department of Education (ED) or ED’s consolidation loan servicers. Top A Direct Consolidation Loan has a fixed interest rate for the life of the loan.Learn about the best nonprofit credit and debt consolidation programs that can help you consolidate your bill payments and become debt free.Get free debt consolidation help, online, or over the phone.There are also several consolidation options available from the federal government for those with student loans.Theoretically, any use of one form of financing to pay off other debts is practicing debt consolidation.