Getting Unsecured Debt Consolidation Loans

Unsecured debt consolidation loans allow someone to consolidate their debt to make one monthly payment instead of several smaller payments. Unsecured debt consolidation loans do not require a person to put up collateral, such as a home. This makes unsecured debt consolidation loans riskier for the lender, so interest rates are usually higher. Only people with good or excellent credit who are employed are usually considered for these types of loans.

Step 1: Prepare Information

In order to apply for unsecured debt consolidation loans, the lender will require certain information, including:

  • Personal information, such as social security number, birth date and address.
  • Employment information, including location, length of employment and salary.
  • Financial documentation, such as pay stabs, tax returns and W2 forms.

Step 2: Compare Lenders

In applying for unsecured debt consolidation loans, things to consider include:

  • How high the interest rate will be.
  • How large the overall amount of the loan will be.
  • How long it will take to pay off the loan.

Some companies might make false promises, such as guaranteeing that unsecured debt consolidation loans can be given to anyone with any credit rating. A person should check with the state Attorney General and a local consumer protection agency to make sure the lender is legitimate.

Step 3: Apply for the Loan

Applications for unsecured debt consolidation loans can be completed online or by working directly with a lender. A person should understand all the terms and fees before closing on the loan.

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