As you might expect debt consolidation loan rates can vary tremendously from company to company, and this can be for many reasons which we will address shortly.
First it's important to remember that the main reason someone requires such a loan is because they have run into financial difficulties, and they may therefore be deemed a 'high risk' customer.
Some people will be a higher risk than others because of their employment circumstances, bad credit history, etc.
Therefore they are likely to be charged a higher loan interest rate.
Other factors which influence debt consolidation loan rates are whether you own your own property, and if you have any equity in it.
A company will almost always charge you a higher interest rate if you don't have any collateral.
An unsecured loan means that the finance company won't have property to seize if you default on your loan.
Whereas a secured loan means that the loan company could repossess your home if you were to default on your payments.
Repayment periods can range from around 5 years to over 15 years, and therefore this could also have a bearing on what interest rate you are charged.
There are a large number of financial institutions who will provide a loan to consolidate your debts, so it's best to check out several companies before you make a decision.
If someone you trust can give you a personal recommendation of a company, i.
e.
how they were treated, interest rates, repayment periods, then it's worthwhile checking that company out.
If no one has been recommended to you, then do plenty of research on the internet.
You'll be able to compare interest rates online and check out individual companies.
If a company has behaved badly, it's quite likely you'll find out about it on the internet.
You want to get out of debt, so start researching so that you get the best debt consolidation loan rates available.