Debt Relief

Unsecured Debt Consolidation Loan: Guide to Determining if This is the Best Option for You

Are you in a lot of debt, or feel that you are getting behind on your payments? If so, it might be time to get help. One of the best options for many people is an unsecured debt consolidation loan. This kind of loan sold make it easy for you to make your payments on time since it’ll be the only one to worry about after you use it to pay off your other debts.

Ideally, the amount of money you borrow with the loan will offer more favorable terms than what your existing debts offer, such as a lower interest rate. Of course, the loans that offer the best terms are intended for borrowers who have excellent credit. Yours should be 660 at the very least. Some lenders will have you answer a few questions to see which (if any) personal loans you might PRE-qualify for. This process won’t affect your credit score. It’s when you go through the full application process of one of the loans you’re pre-qualified for that will result in a hard inquiry on your credit report(s).

If you are unable to get an unsecured debt consolidation loan, or aren’t satisfied with the interest rate and other terms, it might not be the best option for you. There are other options, such as joining a debt management program, debt settlement, or even bankruptcy.

Unsecured Debt Consolidation Loan With Safety

To decide if you want to apply for a loan, first make a list of every single one of your credit card / loan balances, including the monthly payment and interest rate. Calculate the total for everything, and then check your annual credit scores (if you haven’t done so yet) to see where you stand. If you feel that you have a good chance of qualifying for an unsecured loan, go ahead with the pre-qualification process to find out what kinds of interest rates you might be able to get. Determine how much more or less you’ll be paying if you opt for the loan.

For some people, the simplicity of just making one payment every month instead of several is reason enough to get a consolidation loan. There are also secured loans if you don’t mind putting up your savings or some asset up for collateral. Doing this might even result in you getting a lower interest rate than what you’d get with an unsecured loan.

No matter what you decide to do, and whether or not you think an unsecured debt consolidation loan is right for you, consult with CuraDebt. It’s a debt relief company with numerous awards and certifications, and is in good standing with the American Fair Credit Council.

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