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What Is An Unsecured Debt Consolidation Loan? |
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Submitted by Cheryl Adams
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Introduction
If you’ve reached a juncture in your life at which you are interested in taking some direct and positive action to better your financial situation, you may be considering obtaining a debt consolidation loan. In this regard, there are a number of different debt consolidation loan options that actually are available to you today, including an unsecured debt consolidation loan. This article has been designed to provide you with a general overview about an unsecured debt consolidation loan.
Once you have considered the information that is provided to you in this article about an unsecured debt consolidation loan, you will be in a better position to determine whether or not an unsecured debt consolidation loan is the most appropriate debt consolidation option available to you today.
A Simple, Consumer Friendly Definition of an Unsecured Debt Consolidation Loan
When it comes to lending related issues, technical definitions abound. Unfortunately, technical definition can be of little assistance to a consumer like you who really is trying to make a decision about the propriety of obtaining an unsecured debt consolidation loan.
In simple terms, an unsecured debt consolidation loan is a loan that is designed to provide you with the financing necessary to consolidate your current debt obligations. The unique feature of an unsecured debt consolidation loan is found in the fact that you are not obliged to come up with collateral for an unsecured debt consolidation loan.
This differs from the other major type of debt consolidation loan that does require collateral, logically known as a secured debt consolidation loan. In order to obtain a secured debt consolidation loan, you have to have some property (most often your home) that can be used as collateral for a secured debt consolidation loan.
Will You Qualify for an Unsecured Debt Consolidation Loan?
In this day and age there actually are different types of unsecured debt consolidation loan options available to you. However, with that said, if you want to obtain the most favorable deal on an unsecured debt consolidation loan, you will need to have a credit history and a credit score that is not in the proverbial danger zone. In other words, in order to obtain the best possible deal on an unsecured debt consolidation loan, you will need to have a fairly sold credit history and a fairly (good, actually) credit score.
As mentioned, when it comes to finding an unsecured debt consolidation loan today, there are a variety of options. This includes unsecured debt consolidation loan options for people with bad credit.
The drawback with bad credit unsecured debt consolidation loan options is found in the fact that there will be serious limitations in the amount of money that you will be able to borrow. Moreover, the interest rates (and perhaps other fees and charges) associated with an unsecured debt consolidation loan for a person with a bad credit history and lower credit score will be significantly higher than what is otherwise available for a person with a better credit standing.
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