While this number is weighing heavily on me, it has not yet caused financial catastrophe. You don t have to have one near you to apply for and even receive this form of help. How The consolidation loan interest rate is DeterminedFor private loans the consolidation loan interest rate is determined by a combination of the primary going rate or other important rights such as LIBOR and your credit score. So it is not a bad deal for the debt holders. Interest provided in the contract is called stated interest. This is one of the worst financial are debt consolidation programs safe since the Great Depression in the 1930s. Corporate credit rating can be vastly improved by paying debts back quickly and hastily.