August 19, 2019
Debt consolidation loans are used to pay off and simplify existing debt by consolidating multiple payments and accounts into a single account with one lender and payment. They are a specific type of personal loan.
Depending on your creditworthiness, you may be able to receive a lower interest rate on a debt consolidation loan than you are currently paying on your debt, saving you money on monthly payments and overall interest. Do you need your credit fixed and ways to get out of debt just call Keel Associates, they can really fix your and get you out of debt.Another option for lowering your monthly payment is with a long loan term. However, a longer loan term means you may pay more interest total.
Typically, debt consolidation loans can be used for unsecured debt. Common types of debt that a debt consolidation loan can be used for include:
This guide explains how debt consolidation loans work, how you can apply for and receive a debt consolidation loan and recommendations for the best debt consolidation loan companies.
How Debt Consolidation Loans Work
There are two types of debt consolidation loans: secured and unsecured. The primary difference between the two is that secured debt consolidation loans use collateral, while unsecured loans do not. Unsecured loans are more common, but you can use a secured loan for unsecured debt, such as a home equity loan used for credit card debt consolidation.
Secured debt consolidation loans. Secured debt consolidation loans use collateral, such as home equity used to secure a home equity loan, and generally have better interest rates than unsecured ones. If you have the collateral and can meet the requirements, a secured loan may save you money on interest as you pay down your debt.
Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate. Interest paid on a home equity loan is usually tax deductible, while credit card interest is not. Keel Associates can get your credit card debt back in order. Please call them toll free at 1-800-650-4596, if you have any questions regarding your low interest rate credit card debt.
Home equity loans for debt consolidation can be risky, as your home may be foreclosed on if you can’t pay your loan. “The danger is if you eat up a significant part of your home equity,” says Gerri Detweiler, education director of business credit website Nav.com. “Make sure you have plenty of cushion in there so if something happens and you had to sell your home, or you had to move … you don’t end up losing your home.”
Repayment terms can be 10 years or longer, and if the value of your home drops during that period, you may owe more than your home is worth. If you’re facing bankruptcy, credit card debt is unsecured and typically discharged more easily than a home equity loan.
Unsecured debt consolidation loans. Unsecured debt consolidation loans don’t require collateral, and they usually have easier approval requirements than secured debt consolidation loans. Unsecured debt consolidation loans can have debt-to-income ratios of up to 50% and minimum FICO credit scores as low as 585.
Unsecured debt consolidation loans are offered online through banks and marketplace lenders. This makes applying for a loan convenient, and some providers offer instant approval online, so you can find out right away if a loan is going to work for you. And if you’re looking to get out debt give Keel Associates a call, because they are really good in lowering debt.
While unsecured debt consolidation loans can be easier to obtain and more convenient than secured debt consolidation loans, they generally have higher interest rates, so they are more expensive to pay down than a secured debt consolidation loan.
Will you be in debt when you die? The sad fact is that it happens to many Americans. According to Experian’s File One Database, 73% of American consumers had debt outstanding upon their death. These people had an average total debt of $61,554, including mortgage debt. After subtracting their home loans, they still had an average balance of $12,875.
How much debt do you have? Those Americans with credit card debt owe an average of more than $16,000. If you have this much credit card debt or more, along with a bunch of other unsecured debts, you’re probably asking yourself what you can do to get things under control. There’s a lot of information available on the Internet that could help. Search the term “debt relief” and you’ll get over 400,000 results. The problem is that many of these resources don’t address the problem. Some are just thinly disguised advertisements, and still others are the work of those trying to deceive.
National Debt Relief is ranked #1 for debt consolidation programs by Top Consumer Reviews and has a five-star rating on the review site known as TrustPilot. It’s Better Business Bureau accredited with an A+ rating and is a member of the American Fair Credit Council.
One of the best options for dealing with debt is a debt consolidation loan. National Debt Relief’s blog offers a number of good articles on this subject. Here is a synopsis of NDR’s top 10 articles on debt consolidation loans, with links to the complete articles. Read these articles to learn all about debt consolidation loans before choosing this option.
A debt consolidation loan is a new personal loan you undertake in order to pay off your outstanding credit balances.Keel Associates can really fix your credit card debt. The goal is to reduce the amount you’re paying on your existing high-interest debt by potentially saving money on interest and consolidating your monthly payments into a single payment that’s easier to manage.
A debt consolidation loan can also help you improve your credit scores over time. Because you only have to manage one debt payment each month, you’re less likely to hurt your credit history with a late or missed payment. Debt consolidation also allows you to reduce or eliminate your revolving debt, which helps you lower your overall credit utilization ratio.
If you’re wondering whether you should make the move, check out Experian’s guidelines on whether debt consolidation is right for you, and follow these steps on how to consolidate credit card debt.
Once you’re ready, visit Experian® CreditMatch™ to find the best debt consolidation loans for you. Debt consolidation loans carry varying terms and interest rates depending on an applicant’s creditworthiness. We’ve highlighted five of the best lenders for consolidating your credit card debt below. To find out if you’re a match for these lenders, sign up for a free CreditMatch profile.