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N from the consumer to pay off other non-secured debts. What is a consumer loan? A loan resulting from a shopper's purchase that isn't secured to an asset. Consumer loans typically result from credit card purchases and balance transfers. When should I use a debt consolidation loan? A debt consolidation loan should be used when your credit card payments become unmanageable by normal budgeting methods. Debt consolidation loans are one of many solutions that can temporarily reduce debts. To prevent further debt from accumulating you will need to change your buying habits. What do debt consolidation loans cost? Their are many institutions that offer free consultation and claim to be nonprofit debt consolidation agencies. Typically, up front fees are not charged, but you should always ask what fees will apply to the loan before you sign it. True nonprofit agencies will want you to agree to a budget, and may make you agree to let them manage your money. What should you ask before getting a debt conolidation loan? 1. What fees apply to the loan? Small service fees are typical, large commissions should not be paid. Be wary of any company that claims it can reduce your debt, and avoid any company that wants to charge you a large commission to reduce your debt. 2. What is the interest rate on the loan? This should be much less than your credit card rates. A high interest rate will prevent you from paying the consolidation loan off. Try to get a fixed interest rate so your payments do not change. 3. What are the payments on the loan? The payment should be lower than the amount you wer

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