Unsecured Debt Loan

An unsecured debt loan is a type of loan that does not require a collateral. A borrower can use a line of credit without necessarily needing a personal property lien. However, an unsecured debt loan usually has a rate of interest that is higher than that of a secured loan.


Since there is no use of any asset as collateral, the borrower does not have to produce any property to secure the loan for lender and therefore, the lender does not have any means for a lien on the assets of the borrower if the loan is not repaid as agreed.

With an unsecured debt loan, if the repayments are not made, the lender and the borrower are free to re-negotiate the terms of the repayment. However, with unsecured debt loans the main downside to the borrower is they have higher interest rates than secured debt loans.

One of the advantages of an unsecured debt loan is since there is no property involved in processing the loan, the loan can be approved much faster. This saves time and moves the
loan transaction forward soon as the lender processes the loan with the borrower.

However, for you to get an unsecured debt loan, you must ensure that you are credit worthy since the lender will use your credit history to determine your credibility. This is because of the lender’s goal to lend money only to those who show a good indication to pay the loan back.

Therefore, for people who want to borrower but have a bad credit history, using an unsecured loan will be harder to get an application accepted. This, however, does not mean that if you have bad credit you will be denied an unsecured debt loan for sure.

Currently, there are many lenders who are willing to take on risk by lending their money to people that have bad credit. To these creditors, bad credit is not the only indicator of credibility.

Another advantage of an unsecured debt loan is that you have the ability of consolidating all your debts into one easy monthly payment. If you want to apply for this type of loan, you must have verifiable employment and a good credit score.

Your debt should also be low when compared to your income ratio. Most people that have debts choose companies that consolidate debt because they provide unsecured debt loans.

A representative of the debt consolidation company will assess your financial situation and your capacity to repay back the unsecured debt loan. The representative will then negotiate with the creditors to see if they can reduce the balance of your loan amount and the rates of interests available based on the market and your credit worthiness at the time of application.


An unsecured debt loan best fits a person that has no assets to offer as collateral and also has a poor credit rating. Even though you must realize that unsecured debt loans have higher interest rates than the secured type, the monthly installments paid can be low to fit your income level.

By promptly paying down on an unsecured debt loan, (keeping up with your payments) your bad credit rating can then begin to show improvement. Do not make the mistake that some borrowers believe since the unsecured debt loan is not tied to personal assets or property, that the lenders cannot take any legal action against them in case they default on the repayment of the loan.

However, if the borrower does not repay the loan as agreed, he or she can be taken to court where a judge will decide what type of action is to be taken whether you have acquired any assets during the load period or anytime after.

Debt Consolidation Loan

Your Guide To A Debt Consolidation Loan:


A debt consolidation loan is a loan that functions to consolidate several unsecured debts into one lower monthly payment. This loan is aimed for people who have a large amount of accumulated debts and they are no longer able to manage those debts. This loan is available in three choices: mortgages, secured loans and unsecured personal loans.

How this loan works is very simple. You only have to submit a loan application to bank or financial institution that offers this loan. After your loan application is approved by the bank, you can pay off all your current debts and start paying one lower monthly payment under debt consolidation scheme. Fortunately, almost all financial institutions and banks offer this loan so it won’t be difficult to get this loan.

Do I have to consider a debt consolidation loan?

Although this loan has been around for decades, people often do not realize when they have to take this loan. If you are frustrated with harsh phone calls from your creditors; if you are no longer able to repay your monthly payments; or if you want to replace your existing debts into one monthly payment, then you really need to consider this loan.

To qualify for this loan, you must have good income and good credit score. These two requirements are very important to convince your new creditor that you will be able to repay the monthly payment after paying your monthly expenses and bills. One thing to notice is that even though you have good income and good credit score, your loan application might be rejected by the bank if your accumulated debts are too low.

The Benefits Of A Debt Consolidation Loan

There are many benefits that you can get from getting this loan. The most important benefit is that this loan helps you to reduce your interest payments. Once your loan application is approved, you will see a significant reduction on the amount of monthly payment that you have to pay.

Another important benefit of this loan is that it can reduce your stress. Getting harsh phone calls from debt collectors is indeed irritating, which can significantly reduce your productivity. You can stop those harsh phone calls immediately by applying for a debt consolidation program.

This loan also helps you to have better control over your money. Since your existing debts are replaced with one lower monthly payment, you can make a more comprehensive financial budget. And, as long as you stick with your budget, chances are you can avoid experiencing financial problems in the future.

Tips To Find The Best Debt Consolidation Loan

Since there are many banks and financial institutions that offer this type of loan, it is highly recommended that you shop around with several reputable financial institutions until you find one company that offers a consolidation loan with the lowest interest rates. Keep in mind that some companies are open for interest rate negotiation, so you have to use this as an option to negotiate lower interest rates. A credit counselor could also be a great assistance in helping you get the best interest rate available for you when applying
for a debt consolidation loan.


Besides comparing the interest rates, you also have to compare fees that come with the consolidated loan offers. Stay away from companies that do not want to explain their fee structure.

It is also important to figure out the total monthly payment that you have to pay under the debt consolidation program. You have to make sure that the monthly payment of your debt consolidation loan is lower than the total amount of your current monthly payments.

Debt Counseling Advice

Getting Good Debt Counseling Advice Can Change Your Life


It seems like many people are having financial troubles these days and the truth is many are however being the challenge that it is, there is help for those who need it.

Whether you’re struggling because of the economy, you lost a job, you’re under employed or your expenses have increased, there is assistance available. Finding the right kind of debt counseling advice can be the difference between gaining control of your finances and potentially losing everything.

Why Use Debt Counseling Advice?

The first thing to remember when seeking financial help through a debt counseling service is that it’s advice you can use to help turn your situation around. They will look at your  debt information and give you the advice on the best way to get yourself out of financial trouble.

You are not required to sign anything just to get counseling and it is completely your choice whether to follow their advice or not. It’s a great way to get an unbiased opinion about your situation.

Review Your Finances

The first thing that will happen is a complete review of your finances. This will include all types of income you have and all of your expenses. When you go through this review, it is critical that you be honest with the person you’re speaking with if you want to receive the most appropriate debt counseling advice.

Recommendations and Advice

Once the review of your finances is complete, the counselor will provide you with advice and recommendations on how they think you should proceed.

This type of advice can go a long way toward solving your financial problems.
The fact is that a lot of people end up in financal trouble because they were never taught how to manage their money properly.

Getting quality debt counseling advice can provide you with resources and tools to teach you how to do this. You can learn how to set a budget and get tips on how to stick with it.

You will also learn the difference between expenses that are a “must have” and those you “want to have but can’t afford”. This is a lesson well-learned for now and the future if you want to get out of debt and stay debt free. However, this does not at all mean that you will never be able to buy the things you want, only that it will show you buying disciplines that will make you a smart consumer.

In your quest for help with your debt, you may be eligible to reduce some of your expenses in ways you have never before considered. As well you may be able to refinance your mortgage, reduce your insurance costs or even get a cheaper phone plan.

A service that provides good debt counseling advice will be able to direct you to other resources that can help with many types of helpful things.

Consolidating your credit card expenses is another piece of advice you may be given. In most cases, these businesses can provide you with interest rates that are much lower than you are currently paying.


The process works with them contacting your credit card companies and seting up a repayment plan. You will then pay the counseling service,and they will pay your credit card companies. This can end up saving you money each month, and it will help you pay off your credit card debt much sooner than you would be able to on your own. Plus, it helps take the pressure off of having too many payments to go out consolidating your bills all into one single payment.

Of course, if you are in much more serious financial trouble, your debt counseling advice might be to consider filing bankruptcy which many times has been the only way to provide the necessary relief, yet at the same time provides a plan for a fresh start.

If you are in financial trouble it is important that you seek professional advice and begin to work on bringing your situation to a better place which is possible with the help that is available.

Getting good Debt Counseling Advice is paramount to help get your debts paid down and to regain control over your finances once again.

Credit Card Debt

How To Repay Credit Card Debt Quickly:


The use of credit cards has become all too common in today’s consumer environment. Shopping with a credit card is no problem for most people but keeping the credit card paid off each month is always a challenge. If you are carrying a balance on one or more credit cards here are some suggestions that will help you get all your balances paid off.

The first step is to get all your cards together. Sort them by interest rate from highest to lowest or put them in order by high to low minimum payment. It is a good idea to tackle the highest credit card balance first. Plan your budget to allow for paying extra each month. The additional amount you pay each month can be large or small. The main thing is to be consistent and pay this amount each month until you have a zero balance.

You’ll find it much easier to do this if you curtail your other expenses and just buy things you really need. Another helpful tip is to destroy or lock up all of your high interest credit cards. You’ll never have to endure the painful repayment process if you can stop using credit cards.

If you have credit card debt spread over multiple cards, focus on each one until paid off.
It will take determination and a little time but if you stay on task you’ll be able to become credit card debt free.

If you have ever read your credit card bill statement (you should) you have probably noticed the calculation the bank provides that tells you how long it will take to pay off your balance. Many credit counselors find this table more than a little bit misleading.


The timing is based on paying the minimum payment each month until the balance is paid off. That is why you’ll see pay off estimates that seem really long. Sometimes in the 15-20 year range. You can pay your credit card debt off much quicker with this next method.

To pay credit card debt off as fast as possible pay as much as you can afford (not just the minimum payment) each month and continue sending in that amount each month until the credit card debt is completely paid off.

Depending on your credit score rating, you may be able to secure a bank loan with a low interest rate to pay off your credit card debt. Once you have all your credit cards paid off just keep one active and be sure you can always pay it off each month. Credit cards can be very convenient and helpful as long as you never spend more than you can afford to pay off.

Taking on the proper level of responsibility will help you in all your financial endeavors.
If you can’t afford to pay for something within 30 days – just don’t buy it.

Should you find yourself in credit card debt, don’t hesitate to explore your options and get some help. There are many legitimate credit counseling programs available. They will help you design an accelerated credit card debt repayment plan.