Have you ever had a loan? If you are looking at debt consolidation loans you probably have at least one loan if not more. Some individuals look for debt consolidation loans because of credit card debt rather than any loan. Either scenario requires you to have knowledge about debt consolidation loans interest rates. Conflicting stories exist among debt consolidation loans interest rates.
On the whole, debt consolidation loans interest rates are high. These loans can have 15 to 20 percent annual interest. Credit cards are the same. What people fail to realize is how much interest they pay out with multiple debts. On a credit card you can find out how much you are paying in interest each month. This can occur for any debt really. To do this you need to know what your monthly periodic rate is. An annual percentage rate of 18 percent is normally 2 to 3 percent per month. The amount x the periodic rate x the number of days in a month will show you the finance charges you are paying each month.
Say your calculations have shown that you pay $20 per month per credit card in finance charges. You have five credit cards, which makes this $100 per month that you pay in finance charges or interest. With the debt consolidation loans interest rates you are paying the $20 each month in finance charges (interest rates charges).
A consolidation loan has combined your five credit cards into one loan with one monthly payment and one interest rate. So, where you were paying $100 in finance charges each month you are now paying $20. As you can see the debt consolidation loans interest rates are offering you a better deal even if they are at 15 percent to 20 percent APR. When you look at the interest rates in this light you can see that the debt consolidation loan is going to help you alleviate the pressure you feel. They are not a miracle solution and they are not as good as a basic mortgage, but you can get ahead.