Free Debt Help - Unsecured Debt Consolidation Loan

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Unsecured Debt Consolidation Loan

Unfortunately, that's not gonna happen.

Why Not?

Lenders need collateral--something to secure the loan--in case you default. And to them, even if your credit is still good, it's verging on being bad if you're so far in debt that you're applying for unsecured debt consolidation loans. Without collateral, a debt consolidation loan is nearly an impossibility. However, all is not lost. You do have options, one of which is debt consolidation. This is a process that uses negotiation to get your credit card balances and interest rates reduced. Then you make one monthly payment to the debt consolidation company instead of a bunch of monthly payments to your creditors. Because of the reduced interest rates, more of your payment goes towards the principal (the amount you actually owe) instead of towards interest. And that means you can be out of debt much sooner (five years instead of 15 or more)!

You might also consider transferring your credit card balances to a credit card that has a 0% introductory rate or a low overall rate. Just make sure that there are no annual fees or balance transfer fees. Balance transfer fees will only add to what you owe. The beauty of a balance transfer (particularly if it's to a 0% introductory rate card) is that you can be as aggressive as you want with the payments. For instance, let's say you find a 0% introductory rate for a year on a card and transfer the balance to that one. You can either pay the monthly minimum and then transfer again once the 0% rate ends, or you can try and tackle the entire amount in that 12 month period (which is the smart thing to do).

The choice is yours. A cheap debt consolidation loan or debt consolidation?

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