When applying for debt consolidation loans, you should first decide exactly how much money you need to borrow? usually, this will either be the total sum of your debts or the sum of the biggest debts that you have. The amount that you need will help to determine what sort of collateral is appropriate for your loan, and will also be a major factor in determining the interest rate and monthly payment that you'll get in order to pay the loan back. Limitations of debt consolidation Different lenders have different rules for debt consolidation loans? some have a minimum amount that you can borrow, and almost all have maximum amounts (which are usually based upon the value of your collateral. ) Many lenders that specialize in people with less-than-perfect credit will offer very flexible terms for debt consolidation loans, since that's where they get a lot of their business. Unfortunately, you often tend to have a slightly higher interest rate when dealing with these flexible terms. In the end, debt consolidation loans can be a godsend to those who may have felt that there was no way out of their financial problems. The loans can get your debt under control so that you have a single payment to make, and might even help you avoid bankruptcy? a place that no one ever wants to go. Thanks to the ease of consolidating your debts with debt consolidation loans, you won't have to.