Personal Loan For Consolidating Debt

Personal Loan For Consolidating Debt - Using An Unsecured
Personal Loan To Improve Your Finances
By L. Sampson

With poor credit, you can reduce your loan costs and monthly
payments by consolidating debt with an unsecured personal loan.
Even without collateral in the form of property or assets, you
can find lower rate loans. The key is to look online for special
offers that fit with your financial plan.

Consolidating Small Balances With 0% Transfers

For accounts with balances of less than $10,000, applying for a
credit card with 0% on transfers is a great way to get a jump on
eliminating your debt. Before signing up for one of these
offers, be sure you investigate the claims carefully. It is very
easy to get misled, especially if you have a bad credit record.

Start by asking how long the 0% transfer is good for. Dates can
range from six to eighteen months. Next, ask what the interest
rate will be after the incentive period. Here is where you can
get caught paying a higher rate than your original loan. And
finally, request a quoted rate based on your credit standing.
This written estimate will protect you from future changes.

Merging Larger Balances With A Personal Bank Loan

If you want a longer payment schedule or to tackle a larger
debt, apply for a personal bank loan. With rates lower than most
credit cards, you can easily reduce your monthly payments. Of
course the drawback is that over the total life of the loan, you
may end up paying more interest.

Bank loans usually have adjustable rates, but you can find
fixed rates. With a fixed rate, you protect yourself from
unpredictable rate hikes and an extended loan period.

Be A Smart Credit Shopper

No matter which type of personal loan you pick, check a number
of lender sites to guarantee that you are getting the best
available rates and fees. Ask for a loan estimate, especially if
you don’t know your credit standing. This will protect you from
any surprises and give you numbers to make a real comparison
with.

It just takes a little bit of time to start saving yourself
money and improving your credit.

About the Author: Visit Debt Sanity to view our
http://www.debtsanity.com online. Also, visit Debt Sanity for
more information on where to find the best
http://www.debtsanity.com/types_of_debt_consolidation_loans.shtml.

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