Assuming you have debt across multiple loans and credit cards, it’s important to get a handle on what you owe as well as come up with a plan to pay it off. Taking inventory of your debt is the first step. This will help you determine how much you can afford to pay each month, and put you on a path to becoming debt-free.
There are many options available when it comes to debt relief, and choosing the right one can be difficult. However, with a reputable debt consolidation company can help you identify the best option for you based on your individual situation. One important factor to consider when making a decision is whether you want to take out a secured or unsecured loan debt consolidation loan.
What is an unsecured debt consolidation loan?
Unsecured debt consolidation loans are not backed by an asset or collateral, making them the more popular choice. However, unsecured loans typically have higher interest rates than secured loans. Lenders will base approval for the loan and the interest rate on your credit score, income and debt-to-income ratio. To be approved for an unsecured personal loan for debt consolidation, you will typically need to have a good credit score.
What is a secured debt consolidation loan?
Secured debt consolidation loans can be a great way to get your finances in order. By using an asset or property as collateral, these loans can offer lower interest rates and monthly payments than unsecured options. However, it’s important to only apply for a loan you’re confident you can repay, as defaulting on the loan could result in your property being seized.
It’s important to do your research and compare rates and terms from different lenders. Make sure you understand the qualifications each lender requires for loan approval. Not all debt consolidation companies are created equal, so use these tips to help you identify a legitimate and trustworthy one.
There are a few things you can do to research a debt consolidation company and make sure you are working with a reputable one. First, you can visit organizations like the American Fair Credit Council. This organization keep lists of companies that they have accredited. To be accredited by the AFCC, the company must meet certain standards for consumer protection.
Another way to research a company is to read reviews from customers. You can ask family and friends for their experiences or look at online reviews of the top debt consolidation companies. This will give you an idea of what real consumers experienced while working with them.
For example, read our reviews on Turbodebt, Liberty Financial 1, or Advantage Preferred Financial