If you are carrying ample of debts on your shoulders, you can be in great trouble. Multiple debts jeopardize your credit standing and may frame you as a bad debtor. Dealing with various creditors at the same time is a stigma in itself. Their humiliating calls may not let you sleep. I too was in a similar condition a few months back. Until one day a friend advised me to opt for unsecured consolidation loans and put an end to my miseries.
Unsecured consolidation loans are designed for individuals who are getting buried under the burden of debts. These loans consolidate multiple debts into one easily manageable loan making you liable to a single creditor.
Unsecured consolidation loans are not tied to collateral and hence they come with a higher rate of interest. The benefit attached here is that the borrower is free from the risk of property repossession. These are ideal for tenants.
Through unsecured consolidation loans, the borrower gets rid of all kinds of debts such as credit card bills, medical bills, house rent, electricity bills etc. He is not required to make the repayment in a lump sum. Rather, he is facilitated to repay the loan in the form of monthly installments.
The credit score of the borrower plays a vital role in getting unsecured consolidation loans approved. As rated by FICO credit score of 850 is considered as the best and a score of 600 and below is regarded as poor. Taking measures for improving the credit score will qualify you to get better rates from the lenders.
If you have a poor credit history, you can still qualify for unsecured consolidation loans. Bad credit in the past haunts your present credit score. Therefore, before applying for the loan get your credit report updated from a credit rating agency. Any unsolicited debts in the credit report should be immediately removed. This will help the borrower to get favorable rates.
Several banks and financial institutions are trading in unsecured consolidation loans.The borrower may face many hurdles while approaching such physical lenders. There can also be an apprehension of loan refusal. In such a situation, online lenders will be helpful. Most of the loan providing agencies have their proposed websites supporting online application. The borrower can collect quotes from various lenders and compare them on the basis of loan term, loan amount and rate of interest. Online lenders have a propensity to provide the best possible deal to the borrower according to his financial status and repayment capacity. Using the online loan calculator will give you an estimate of the monthly installments and help you decide whether you can actually afford the loan or not.
Take control of your tormenting debts. Unsecured Consolidation Loans help you club multiple debts under one loan.Getting into debts can be a bed of thorns. So it is advisable to keep a check on your expenses and not let them overflow.
Monday, December 10, 2007
Make An Escape From Debts Through Unsecured Consolidation Loans
Authored By: Maria Smith
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2 comments:
When someone is dealing with monay troubles it is easy to lose control and end up creating more debt while trying to pay off existing debt! If someone finds themselves in a situation were they are living outside their means they should get some advise from professionals who can help them with their problems and assist in implementing a debt consolidation programme.
Some credit card problems are as a result of failing to have more information before going for a credit card. You only realize later that your credit card carries very high interest rates and also carries other hidden fees like expensive annual usage fees that were not reflected before you considered settling for a certain credit card company.
Consumer goods like cars, television, computers etc are meant to depreciate in value and credit cards should not be used to purchase them. This is because when you decide to sell them in future they will actually be bought at a lower price. It is good to use cash to buy these assets to avoid any credit card debt problems that could be avoided. It would be a good idea to have a debt because you are trying to settle for a home or you are trying to settle some education. A house will safe you a lot of stress of having to pay rent every month and education may as well give the beneficially a very nice and important job that will definitely compensate for what he/she used the money for.
Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Debt for Years. For More Information on Credit Card Debt Problems, Visit H Site at CREDIT CARD DEBT PROBLEMS
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