PostHeaderIcon Unsecured debt consolidation loan?

Are debt consolidation loans secured or unsecured?

6 Responses to “Unsecured debt consolidation loan?”

  • The Gooroo says:

    The main type of debt consolidation is the consolidation loan that can either be offset against a form of collateral, ie your home (secured loan) or a standard consolidation loan that you will need a reasonably good credit score to be approved. This is generally called an unsecured loan. An unsecured loan would be the most preferable as you are not risking your home or whatever you have financed the loan against should something unforeseen happen that makes it impossible for you to keep up payments.

  • sweetshop says:

    Could be either but nowadays very few are given out. If you have credit card or personal loan debt it is better to try to get it legally cancelled altogether. I used and was very pleased.

  • Mia Jacob says:

    Debt consolidation loans are usually secured loans. For an unsecured loan (with a low interest rate) for debt consolidation, you should have a good credit score.

    Anyway, debt consolidation can be a great form of debt relief to start tackling your debt – whether it’s just lowering your rates, getting a better loan, or cutting your payments to get debt free faster.

  • ho hummmmm says:

    since a consolidated loan is a much better deal than a collection of smaller debts (only one payment, lower interest rate), you have to “pay” for it in some way, and usually that is by offering collateral, such as a car for example. That’s called a secured loan.

    you have to have at least decent credit to get one, but if you do, you should treasure it above all else and not default on it. if you default on one consolidation loan, you probably won’t be granted another.

  • Big Hearth, Strong Will. says:

    There are both kinds.

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