Debt consolidation is a very simple process where you as the holder of many different forms of debt can ease your repayment by consolidating all your debt be it home loans, car loans or even credit card debt into one single easily serviced loan interest loan. The concept is easy enough to understand but actually finding an appropriate lender that can offer you a loan package that suits your needs is rather more difficult.

Below we have listed some of our partners for your consideration. The first lender/credit counselor that would like to introduce is Credit.com. We particularly like them because of the cheap debt consolidation loans that they offer and also the different debt counseling options that they offer too.

Another one of our favorites is HFC who is a subsidiary directly under HSBC. The services that they provide are top-notch but have debt consolidation loan products which aren’t the cheapest in the market. The main reason for this is their “bank” status where they have to cover much higher running costs than other budget lenders online. On the flip side of that they do provide a much better service too, they will often even give you advice free of charge should you ask for it.

When choosing your debt consolidation loan it is vitally important to understand that you are moving all you debt instruments to a single loan. Your loan must not under any conditions be more expensive than the total that you pay for your debt instruments currently. The idea is to get a loan that is cheaper so you aren’t burdened by a high monthly repayment.

We also must point out that some lenders will charge an extremely high “service charge” that may make your debt consolidation loan unbeneficial to you. It is then vitally important to read the fine print on any of your application form so you can weigh up the differences between the lenders more accurately. Even if the loan may look cheap initially with the low A.P.R, always be weary of a high “service charge” that off-sets any savings in interest rate charges.

One advantage of debt consolidation loans is the flexibility of repayment period that it offers. If you are really strapped for cash and can’t make huge repayments to your debt then you can easily opt for a longer repayment period. This option is particularly useful for credit card or payday loan debts as these have very high interest rates attached to them and thus benefit the most from a debt consolidation loan that has repayments drawn out for 5-9 years.