Unsecured Debt Consolidation Loan - Debt Consolidation Assistance

Unsecured Debt is debt that has no collateral backing up the debt. Collateral is some sort of asset that has value. An auto loan is a secured debt. In the event the borrower or person using the car cannot make the payments, known in the industry as defaulting, the loan holder can repossess the vehicle.

Some examples of unsecured debt are credit cards (Visa, Exxon, American Express, etc.) lines of credit, store cards (Macys, Sears, Kohl's etc.), and medical bills

An unsecured debt consolidation loan is a loan that has no assets to reclaim, if you are unable to make your payments. The only reason a lender is willing to make this type of high-risk loan is to gain greater profits. The way the lender makes more profit is by charging a higher interest rate. In some cases an up-front fee may be required. A well known up front fee associated with mortgages and is called points.

Even with the higher interest rates than a secured loan, a professional debt consolidator can make an unsecured consolidated loan very advantageous for an unsecured debt holder.

If you have made "late" payments on your credit cards, your current interest rates may be much higher than the unsecured loan interest rate.
The total amount you now owe on the current minimum payments for each debt may add up to much more than the one monthly payment you will have on your new consolidated loan.

Take this opportunity to learn your options for getting your unsecured debts under control.