Unsecured Debt Consolidation Loans

Interested in debt consolidation loans but don't have any collateral? Good luck.

YOU Be the Lender

Pretend for a moment that you're a lender. Someone with debt problems comes to you asking for an unsecured debt consolidation loan. Looking at their history of debt problems, even if their credit is good, you're more than likely going to say no. After all, without collateral, how will you get your money back if this person (who, remember, is a stranger to you) defaults? That's why unsecured debt consolidation loans are practically unheard of.

Options

So, unsecured debt consolidation loans aren't for you. Know what you can do? Transfer your credit card balances to a low-interest credit card. If you can find one with a 0% introductory rate, that's even better! As long as there's no balance transfer fee and no annual fee, it's as close to unsecured debt consolidation loans as you can get.

If that doesn't work out for you, there's always debt consolidation. In fact, it's a little better because a debt consolidation counselor will negotiate with your creditors to get lower interest rates and possibly even past fees removed. This results in lower balances. Then they combine all your balances into one, and you make one monthly payment to the debt management company instead of several monthly payments to your creditors. With either program, you can be debt free in five years! How's that?!

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