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Extending the Term on Your Consolidation LoanExtending the term on your consolidation loan will reduce your monthly payments, but it could also increase your expenses. Debt consolidation takes all your debts and converts them into one loan. You lender determines the repayment term and interest rate on the loan. An extended term means that your monthly installments will be low and allow you to pay off your debts over time. When looking for a long-term debt consolidation program, consumers should find the lowest possible interest rate. This will help save the greatest money over time, as consumers carrying large credit card debts usually pay high interest. Consumers should determine if it is better to get a secured or an unsecured loan. Secured debt consolidation loans carry lower interest rates, but borrowers risk losing their assets if they default on their loan. Clauses are often built into most debt consolidation contracts which protect the lender and ensure that the debt gets paid. Some clauses limit or prevent the borrower from opening new accounts. Consumers should be sure to read the fine print before deciding to go though with the process. The long-term debt consolidation program may be a tax advantage to the borrower, as it may allow them to write off their interest payments. This is just one more way a debt consolidation program can help save money. About the Author
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