Credit Card Debt Essentials

Unsecured Debt Consolidation Loans

An unsecured debt consolidation loan places none of your possessions at risk, but the loan's interest rate may be significantly higher than your current outstanding bills. In the end, you may be paying double or triple the amount in interest of your original debts or get side tracked making loan payments for years longer.

Unsecured loans may include money you borrowed from a finance company where you did not sign a security agreement, money borrowed from friends or relatives, as well as some education loans, credit cards, legal fees, medical financing, or accounting bills. Depending on the arrangements, your creditors can charge you as much as 30% interest rate.

A debt consolidation loan only places you deeper in debt, complicating your financial difficulties, not solving them.

Consolidated Credit Counseling Services get calls from people telling us that getting a debt consolidation loan was the final cause of their financial derailment. After they paid off their debts with the loan, it was not long before they got into credit card debt again. Now they were left with both a debt consolidation loan payment and credit cards to repay. Many consumers who obtain consolidation loans get back in debt and return looking for yet another consolidation loan; never ending the cycle of debt and never rebuilding their equity. Americans of all education and income levels are falling into this trap.

Consolidated Credit Can Help You Get Out Debt

Consolidation loan isn’t the only answer. You do have other debt relief options. Call Consolidated Credit Counseling Services at 1-888-881-3619 to speak with a certified credit counselor that can review your financial situation, discuss the pros and cons of debt consolidation loans, and help you find a personalized debt solution.