You’re probably already familiar with the concept of a credit debt consolidation loan. In short, it is a way to consolidate your existing debts (usually credit cards) by obtaining a loan large enough to take care of them all. From there, you’ll only have to make payments on that one loan – with interest of course. Some people look for consolidation loans to help them pay off medical bills that keep piling up over medical emergencies.
As with any loans, there are unsecured and secured consolidation options. If you still have good enough credit and a high score, your chances of getting approved for an unsecured loan should be decent. If your debt problems are already affecting your credit score, then you might have to put something up for collateral. The good news about secured loans and putting up collateral means that you might qualify for lower interest rates, making it easier to meet repayment requirements.
Any kind of credit debt consolidation loan might be better for you in the loan run if all of you are already behind on all of your debts and your interest rates keep rising. Multiple credit cards and other sources of debt with high annual percentage rates can really add up to a lot of extra money.
Credit Debt Consolidation Loan from a Bank
Don’t just apply for a consolidation loan through your usual bank. Get some advice from the experts first. Get a free quote and consultation from a debt relief / management firm. They will let you know if this really is your best option, and if it is, what steps you should take to get a consolidation loan that best suits your needs.
Shop around for the best consolidation loan quote as well. If it’s decided that it is indeed the best option for you, compare a few different lenders to see what kinds of interest rates and terms you can get. Don’t forget that getting rate quotes from lenders only result in SOFT inquires on your credit reports, which shouldn’t hurt your score too much. It’s not until you actually go all the way through the application process that you get a hard inquiry.
Work with your debt settlement / management experts to create a plan for you to avoid new debt. While a consolidation loan will help you wipe the slate clean so to speak, you must not continue with the same habits, or you’ll be right back where you started and find yourself in trouble yet again.
Where can you find experts who will help you decide if a credit debt consolidation loan is right for you? You should consider starting with CuraDebt. You can get a free savings estimate, as well as debt relief for medical bills, credit cards, certain tax debts, and other unsecured debt.