Debt Consolidation Loan Rules
Never, ever, ever, sign a consolidation loan without full disclosure in writing of:
1) The principal amount that you are borrowing.
2) What the interest rate APR will be.
3) How many payments you will pay.
4) Closing costs, if any.
This should be clearly spelled out in the contract. If it’s not on the contract, don’t sign it.
If you don’t know how to check their math and verify the monthly payments, don’t sign the loan papers, you have no business taking out a loan.
If you chose a consolidation loan instead of a consolidation plan, be sure you use the entire amount of the loan to payoff your accounts, and close all the accounts you are paying off. DO NOT keep any cash for yourself to spend.