When you compromise with creditors, follow the agreement. There are alternatives if you cannot arrange to pay your creditors with current or expected resources. While a debt consolidation loan may simplify your life, remember you are taking on a new debt to finance the new loan at a higher interest rate. Before you commit to this strategy, make sure you have exhausted all of the possibilities for arranging payment with your creditors. If, however, you do decide to obtain a consolidation loan, shop around for the best terms.
Most lenders offer a better interest rate for a secured loan.
Don't be deluded into thinking a consolidation loan solves your financial troubles. You still need to exercise financial care to meet all financial responsibilities and to plan for future welfare. Debt consolidation loans are issued in Missouri by licensed banks, savings and loans, credit unions and finance companies. You arrange a cash loan to pay your creditors. Your new debt is to the financial institution making the loan.