Are you facing hardship making payments towards your multiple unpaid bills? Do you want to take advantage of a debt consolidation loan? Are you worrying because neither you own a property nor you want to put anything as collateral? If answers to the above mentioned questions are â€œyesâ€, then itâ€™s time for you to stop worrying and take advantage of unsecured debt consolidation loans.
With an unsecured debt consolidation loan, you can consolidate your multiple debts into a single one. As there is no collateral, the risk for the lender is more. So, the loan amount will be smaller and the interest rate will be higher.
When to opt for unsecured debt consolidation
You can opt to take unsecured debt consolidation loans under the following circumstances:
- You cannot manage your multiple debt burdens
- You want to stop harassing calls from your creditors
- You want to impend bankruptcy
Benefits of unsecured debt consolidation loan
- No collateral: as you donâ€™t have to provide any collateral, there no risk of your house being repossessed by your lender.
- Fixed repayment term: With the new loan you will have a fixed repayment term. This will help you to become debt free after a fixed period of time.
- Peace of mind: As you will not have to deal with multiple creditors anymore, all the harassing calls from the creditors will come to an end and your mind will be free of stress and you will have peace in your mind.
- Single bill: With the new loan you will be able to pay off all your unsecured bills like, medical bills, credit bills, payday loans, etc. You can manage your budget easily with the new loan, having a payment plan that best suits your affordability.
- Improved credit score: When you start repaying your new loan, it will have a positive effect on your credit score.
- Interest rate lower than credit cards: The interest rate on your new loan will be lower than the interests on your credit cards taken together. So, the monthly payment amount becomes lower than what you are paying towards all your multiple bills now. Thus, you will be able to save money.
- Less documentation: As you are not providing with any collateral, the documentation process is easier and the time to get the loan is also less.
You can also apply online to get unsecured debt consolidation loans. You need to fill out a form containing some basic queries like, your name, address, date of birth, social security number, etc.Â However, you should shop around and take the loan from such a lender who is reliable and the quotes offered by whom suits you the best.