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Many people are unaware of the differences between consumer debt consolidation and business debt consolidation. Well, there really are few differences, but the ones that exist are great. Mainly, it is far easier for an individual to qualify for consumer debt consolidation than it is for a business to secure debt consolidation loans. It is all about risk for the lenders.
Individuals can often fall into debt, in fact, most of us do. It has become a fact of life that debt will exert some sort of control over your life. To reduce this control, consumer debt consolidation is the best solution. With it, you can take control of your own financial circumstances because lenders understand when a person has debt. When a business accumulates debt, it is a whole different story.
Businesses are supposed to make money, period. When a business accumulates a great amount of debt, lenders will want to know why before agreeing to loan for debt consolidation. There are often good reasons for businesses to accumulate debt. Expansion being only one of many. However, most business debt is caused my mismanagement of company money and this translates into a higher risk for lenders.
These differences in risks make for the ‘bottom line' differences between business and consumer debt consolidation. Those are simple – rate and term. Rates and terms are very different for these two types of consolidation loans. If you want to know more about these, consult with a debt consolidation specialist who can provide you with more then just the answers you need, but help in securing a consumer debt consolidation loan.