The worldwide recession, redundancies, and unemployment, have all contributed to the dramatic rise in the number of people contacting debt consolidation lenders.
Sadly, the growing need for such loans has also led to the growth of shylock style finance companies. These companies, with their extortionate interest rates, put even more pressure on the already vulnerable borrower.
People are often very desperate when they are seeking loans. With bad credit already an issue, they contact one company and accept their loan immediately, and that's just not a good idea.
There are many respectable and legitimate debt consolidation lenders who will charge a fair interest rate.
It's best to contact a few companies and get all the information that you need, such as interest charges and repayment periods.
When you fill out a debt consolidation loan application, make sure that you include all of your debts, and don't miss anything out. Some applicants think that the fewer debts you put on a form, the better chance of getting a loan, but they're wrong.
The reason that you are getting a loan is to pay off all of your debts, leaving you with a manageable monthly payment. If you leave out a few debts because you think it'll look better on your form, you'll have extra monthly payments which will be an extra burden.
Write out a list of your debts and include car loans, store cards, credit cards, unsecured loans, etc. Once you've completed the list things will go a lot quicker when you're contacting the finance companies, as you'll have all your facts and figures to hand. You'll also be able to complete your debt consolidation loan application more quickly.
So, make a list, don't leave anything out and make sure you check out several debt consolidation lenders.