Unsecured Debt Consolidation Loan

If you're in debt, you might wish someone would just loan you the money to pay it all off, then you would just make a monthly loan payment instead. The problem with that is that you probably don't have any collateral, and most lenders won't give an unsecured debt consolidation loan to anyone.

Good Credit vs. Bad Credit

An unsecured debt consolidation loan is difficult for most people to get, but if you have bad credit, you can forget it. Lenders think that if you couldn't pay your creditors on time (or a all) how will you pay them? If you at least had something you could offer up as collateral (for instance, if your car was paid for) at least they would have some way of recovering their money if you stopped paying them. You'd do the same thing in their shoes. Sometimes, if you have good credit, you can get an unsecured debt consolidation loan, but the interest rate will be so high that you won't really benefit all that much.

The best way to get "unsecured debt consolidation loans" is to maybe try and transfer the balances of your credit cards to a credit card with a low or 0% introductory rate. This could save you a lot of money in interest, so if there's no annual fee and no balance transfer fee, it's the best thing you can do if you can't get a debt consolidation loan.

Of course, if all else fails, you could enroll in a debt consolidation program. It's essentially the same thing, except your credit card debts don't get paid off in full (at least not right away like they would if you got a loan). Under this plan, a debt consolidation company contacts your creditors to get your balances reduced slightly and your interest rates reduced a lot. The result? You're out of debt in five years as opposed to 15 or more.

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