Article Sphere Logo
 

Debt Consolidation and the Benefits of Unsecured Loans

By Expert Author: Reginald Curtis | Article Abstract
Word Count: 335 words | Views: 68 view(s)
Unsecured loans for debt consolidation are loans that do not require collateral. Debt consolidation loans are claimed to help debtors avoid bankruptcy, eliminate debts, terminate hassling creditors calls, lower debt payments, and one low monthly payment. Of course, no one wants to file for bankruptcy.

Lawyers are notorious for telling people that there is no other way but to file for bankruptcy. Likewise, any source that tells you that they can eliminate debt is leading you on. Reality is structured to keep everyone in debt. No one has the ability to get out of debt unless they die. However, there are solutions for minimizing debts so that you can remain stable.

To give you an idea of unsecured loans for debt consolidation, I am going to breakdown the balance of a hypothetical loan scenario.

The unsecured loans for debt consolidation are nothing more than subtracting a series of debts and adding new debts. Sure, you may pay less, but in the long run, you still owe something to someone.

Let's say that you owe a number of creditors $10,000: you can go to a debt consolidation organization that offers you the loan amount. Now, you have depleted your debts from the other lenders, but you incurred a debt from another lender. Let's say there are fees (which in most instances is true) and those fees equal $39 plus a 4.49% interest. On a $10,000 unsecured loan for debt consolidation, you would pay around $834 per month to repay the debt. If the company charges $39 plus interest and the capital on the loan, it would only equal around $759.30 per month when applied to the loan. This means that it would take you longer than one year to repay the debt.

Finally, there are solutions for paying off debts without getting in more debt; however, most of these solutions will need you to actually deal with your own creditors and will also require you to exercise an enormous amount of personal restraint in your financial decisions.
Reginald Curtis

About the Author/Author Bio

Find deep discount on hand tools at EZ Discount Tools
Discount Snap On Tools

Article Source: http://www.articlesphere.com/Article/Debt-Consolidation--and-the-Benefits-of-Unsecured-Loans/113711

Article Submitted: 2007-11-21 | This Article has been viewed 68 times.

Rate Article

Related Videos

How to Deal with Debt Collectors
How to Avoid Debt Mistakes
How to Talk About Your Debt Record
How Debt Gets to Collectors
How to Dispute Negative Debt Rating part 2 - 2
 

More "Debt Consolidation" Related Articles

 
 

Listed below are more articles related to the above article from the "Debt Consolidation" article category.

People interested in the above article "Debt Consolidation and the Benefits of Unsecured Loans" are also interested in the related articles listed below:

 
People threatened with foreclosure tend to get desperate when they would actually make good use of serenity. Thus, in order to think clearly, you need to forget about what might happen and focus on your debt. Debt consolidation can put a stop to foreclosure if you choose the right timing and you do not keep postponing the decision waiting from some magic solution. Foreclosure can be stopped; it just has to be your choice.
Living in today's economy may have been the stimulant to cause many people to reevaluate the financial situation they are in and try to make the best of bad circumstances. This type of economy can also help encourage them to try to figure out how to save money, if only in a small way.
Debt settlement is a tricky subject, not least because the phrase can more than one thing. This article aims to offer helpful advice on many issues including how the process works, how to decide if it is right for you and whether to do it yourself or use a settlement company.
Debt help is available in various forms, but is can be difficult to know where to go and who you can trust. This article explains how debt settlement and negotiation works and outlines the pros and cons of doing it yourself compared to using a professional company.
Receiving a summons for credit card debt can cause a great deal of anxiety, particularly for those people who may not understand what the possible consequences of it are. This article explains what to do if you receive a summons, and what steps to take to ensure that you do not receive a summons in the future from any other creditors.
If one is knee deep in debt, the first thing that comes to the mind of the customer is to look for a debt settlement company. For a monthly fee that is been offered, a debt settlement company takes the responsibility of resolving the problems of the customers by working on their behalf. The amount of fees is as less as nearly half the amount of what the customer owes, but some of the debt settlement companies do take advantage of people in adverse financial situation.
Credit card debt is a major problem in this country. Everyone has a credit card, those that do carry a large balance. The interest rate on a credit card balance is usually between 20-30 per cent APR. These high interest rates make it difficult for people to pay down their debt when only making the minimum payment.
 
Article Directory Home All Categories Finance Debt Consolidation
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish