Bank debt consolidation loans allow you to consolidate all your debts into a single bank loan debt. These loans are useful ways to reorganize and then get rid of debts because they have comparatively less interest rate than most debts. Consolidating various debts to a bank loan will result in low monthly payments and an extended period for payoff of the debt. These bank loans often do not have any late fees. These are the reasons that make bank debt consolidation loans quite popular nowadays.Most of the bank debt consolidation loans are secured loans, therefore you need collaterals. The type of collateral and its value are determined by banks. Common collaterals include home, vehicle, real estate properties, insurance policies and other benefits. Many banks offer debt consolidation loans on the basis of the customer?s savings account. Most of these loans are provided to persons with average or above average credit rating. But in a few unique circumstances, banks provide loans to even poor credit persons and persons lacking established credit.Bank debt consolidation loans cover almost all unsecured debts such as credit card debt, past medical debt, service charges, personal loans, store bills, gas bill, departmental store debts and certain installment loans. There may be different types of bank debt consolation loans to fulfill different needs. The interest rates for these loans vary considerably, depending on the credit rating of the debtor. The better the credit rating of a debtor is, the lower the interest rate of the loan. Usually the rates fall in the range of 10% to 13%. The loan amount ranges from $2,000 to $100,000.Applying for bank debt consolidation loans is easy. A debtor can apply online using his secure loan application, or approach directly through customer service representatives. Most banks need a cosigner, a qualified person who guarantees payments. In order to qualify for most bank debt consolidation loans, you have to close your credit cards and other related debt accounts. Before applying for a loan, it is wiser to look at as many plans as possible and select one with low interest.Taking a bank debt consolidation loan may actually improve your credit rating as the creditors realize that you are making a good effort to repay the debt. However, it is to be kept in mind that these loans never eliminate debt, only reduce it. A debtor will still have to make his monthly payments regularly.