When looking for low interest rates in debt consolidation services you need to completely understand how debt consolidation works.
In a consolidation plan it is not about which individual company offers low interest rates, because many companies offer low interest rates.
The legitimately helpful companies out there will provide you with low interest rates as long as you take out a secured loan, secured loans save money in comparison to an unsecured loan.
What is a secured loan? A secured loan is a loan which requires some form of equal value collateral to the debt itself to hold against the debt.
This guarantee's to the consolidation company that with having bad credit, if you are unable to make correct payments, in full and on time over a long period of time.
The company will then take the asset and sell it to pay off this total debt.
By making a secured loan the company finds no risk in offering your service, nor do they actually want to take your asset which is why a legitimate company will give you a few chances before pulling your account.
What does a debt consolidation service do and is it right for me and my level of debt? A consolidation service works by taking multiple companies in which you are in debt too, they will pay off these companies and transfer the total paid off debt to their company to be paid off over a coarse of months in which is affordable for you.
This saves you from having to pay multiple bills a month which may add up to more than you can afford, while also saving you from service and extra fees which may all be building onto of each other.
Thus you have a lower monthly bill to pay every month, the companies are no longer bothering you for money, and you have more extra money every month to live by and take care of your family.