subject: Applying For A Loan To Erase Credit Card Debt [print this page] Unsecured debt consolidation loans can help you to drastically lower your interest payments and as a result make it easier to pay back your existing debts. Also, because of the fact that you will now only be paying one monthly payment you will find that you will be able to keep track of the bill and your interest rate will be considerably lower.
Well, there is a solution. If you find that consolidating your credit card debt is not an option that will work for you then you may want to consider a personal loan. These personal loans tend to have a lot lower interest rate than a lot of the credit card companies offer and are most generally given to those that have a very low credit score. Without this loan a lot of people feel that the credit card companies are just out there to ruin their lives.
Although applying for a loan designed for bad credit may not seem like a good option there are thousands of companies out there that will provide you a loan regardless of what your credit score. Of course you will still have to pay back the loan but instead of several payments to individual companies each month you will have one low monthly payment.
One of the main advantages is that you will be able to group all of your monthly payments into one smaller monthly payment. All your bills will now be due on the same day and instead of several payments you will have one simple payment. This makes it much easier for you to handle and you will find that you will never miss a payment again.
Another great benefit of these loans is that you will be able to reduce your penalties and interest rates. When you are only making the minimum payments each and every month you are doing nothing for the principal balance which leads to penalty payments which makes your debt even higher. These loans will help to lower your interest payment which will help to drastically reduce the overall amount that you owe the company.
A personal loan will actually lower your credit score but, most generally this is just for a short term. However, you will be able to counteract this by simply closing each of the debts that you pay off. This will help reduce the temptation to reuse those credit cards and save your credit score from potential financial ruin.
One of the advantages of these loans is that you will be gaining a loan from someone that you can trust. But, one of the biggest disadvantages that a lot of times these loans will carry a bigger interest payment than you may be willing to pay.
Unsecured debt consolidation loans are actually a great idea once you know the good news and the bad news. Most generally you can counteract the bad news with just a few simple steps.
