Help consolidating bills
If you’re facing bankruptcy, credit card debt is unsecured and typically discharged more easily than a home equity loan. Unsecured debt consolidation loans don’t require collateral, and they usually have easier approval requirements than secured debt consolidation loans.
Unsecured debt consolidation loans can have income requirements as low as ,000 annually, debt-to-income ratios of up to 50 percent and minimum FICO credit scores as low as 600.
With very good or excellent credit (a FICO credit score of 740 or higher), you will be in a better position to qualify for the lowest interest rate offered by a lender. Your loan terms determine how much you will borrow and how long you will take to pay it back.
and you certainly shouldn’t send money with a wire transfer or prepaid card,” Detweiler cautions. Although it may be tempting, avoid using your newly cleared accounts to shop or manage household expenses.Before you apply for a debt consolidation loan, you should consider alternatives, figure out how you’ll make payments and make sure you’re finding the best rate available.Credit cards with zero percent APR on balance transfer offers allow you to transfer existing credit card balances to that new card. It’s essential to have a plan for how you can make the new payments, especially if you’ve previously struggled to keep up with minimum payments on your balances.Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.Interest paid on a home equity loan is usually tax deductible, while credit card interest is not.