Unsecured Debt Consolidation Facts

By January 26, 2009Loans

If you don’t own your own home and have no other security to take a loan out against, you might find yourself considering unsecured debt consolidation. Even if you have no collateral you should be able to find yourself an unsecured debt consolidation loan and, in a crowded market, many are available with reasonable rates and terms.

Unsecured debt consolidation loans don’t need security or collateral. And tough competition means that unsecured loans aren’t as expensive as they used to be. Like many other financial products, unsecured debt consolidation companies almost all offer free quotes based on your specific circumstances.

Unsecured debt consolidation – what’s the deal?

  • Both tenants and homeowners can apply for unsecured debt consolidation loans
  • Most providers set an upper limit to the amount borrowed, often £25,000, on unsecured debt consolidation loans
  • To reflect the risk of losing their money, lender interest rates usually depend on the personal financial circumstances of the borrower. Someone with a good credit rating, a full time permanent job and an income of £30,000 a year will probably qualify for a lower interest rate on their loan than someone with a part time job earning £8,000 a year
  • Many loans come with no application costs or upfront fees and you can usually apply for an unsecured loan even with a low credit rating, defaulted loans, County Court Judgements and mortgage arrears
  • If you are self-employed, you will probably be able to qualify for unsecured debt consolidation
  • Many loan providers promise to pay your money within a few days of your application being approved

Unsecured debt consolidation companies

Research to find the best unsecured debt consolidation deal

As with all important financial decisions, it makes sense to explore all your options rather than making a snap decision that you might regret. There are many ways to pay off your debts and an unsecured debt consolidation loan is just one of them.

Please let us know of any other alternatives to a unsecured debt consolidation loans.