Debt Relief Opitons - Types Of Help Available For Unsecured Debt Consolidation

There are several types of help available for unsecured debt consolidation

. You can choose to take out a debt consolidation loan to lower your rates and payments. You may also choose to use a debt consolidation programs, letting a third party deal with your creditors. And finally, you can turn to a credit counselor to help you find the best plan for your situation.

Debt Consolidation Loans

A debt consolidation loan is any type of loan you take out for the purpose of paying off other creditors. Ideally you want to find a loan with lower interest than what you are currently paying on your bills. However, even if you dont lower your rates, you can lower your monthly payments by choosing a long term loan. The drawback of course is paying more in interest charges. You can choose from a secured loan, usually backed by your home, or unsecured loan. Secured loans, including a home equity loan, second mortgage, and line of credit, will have lower rates and the tax advantage of writing off your interest payments. However, if you dont have a home, you can still find relatively low rates with a personal loan.

Debt Consolidation Programs

You can also work with a debt consolidation program to lower your rates and consolidate your bills. This third party agency will negotiate lower rates with your creditors for a small fee. You also only make one monthly payment, letting the agency pay your bills from that sum. Some non-profit agencies also specialize in helping those with six or more months of late payments. Before you sign up with these types of programs, be sure you have researched several agencies. Compare pay back dates, fees, and estimated monthly payments.

Credit Counseling

If you are confused about your options or just dont have a plan for getting out of debt, consider visiting a credit counselor. As a non-biased person, they can explain your financial options. They can also discuss with youre the pros and cons of each options, helping you find the best program for your unique situation. Besides helping you to consolidate your bills, they can also help you develop a monthly budget and long term financial goals.

Debt Relief Opitons - Types Of Help Available For Unsecured Debt Consolidation

By: Blair Alfred

POST COMMENT

Debt Consolidation Loans - Why You Must Consider Debt Consolidation Loans Debt Relief: Get Debt Free With Debt Consolidation Loans Debt Consolidation - Live debt free Life Debt Settlement Vs. Debt Consolidation A Number Of The Top Advantages Of Bad Debt Consolidation Debt Consolidation Loans - Pay Your Debts without any Tension Debt Consolidation Loans: Rectify Past Mistakes A Couple Of The Benefits And Risks Of Debt Consolidation Loans Debt Consolidation Loan - A Loan That Complements Your Requirements How Can Debt Consolidation Help You Out? Debt Consolidation Relief – Does This Option Make Sense For You? Debt Consolidation Agencies – How They Work Debt Consolidation – Lower Payments For An Easier Payback