The term Debt Consolidation seems to have become a subject of great confusion and conflict based on the information given by the advertisements. Even the popular search engine like Wikipedia is not able to give a clear justification to the term, thus this information seems to prove inadequate when trying to solve people’s debt problems. Furthermore there are advertisers who seem to be conveniently giving ads under the disguise of debt consolidation or unsecured credit card debt consolidation , while the services they provide have nothing to do with consolidation.
If you are genuinely looking for some help with your unsecured debt then consider the following options in order to get credit card or unsecured debt relief.
• You can go for a Home Equity Loan. This will help you to use the equity of your home as security and thus allowing you a loan at a low rate of interest. The loan can then be used for consolidating credit cards debt. You will need to have a comparatively good credit score to go for this option.
• Similar to home equity loan is Refinancing. In this case you take a new loan on your home and pay off the old mortgage which existed on your home. You end up having a loan with better terms and if you have equity in your home then you get the option of cashing out. This cash will be added to the new mortgage loan.
• If you do not have home equity loan then you should go for unsecured debt Consolidation Loans . You will get this loan on high rate of interest since there is no collateral involved.
• Another option is of unsecured debt settlement. This service involves debt payment through a company who reserves funds until you have collected enough to pay the creditors. Then the company tries to settle your accounts by negotiating as much as they can and also taking part as their fees.
• One more option is Debt Management Plans or Credit Counseling. Although controversial option but if guided correctly it can work well for people. In order to get rid of unsecured debt credit counseling can lower down your interest rate. Also lower your monthly installment to help you pay off your debt sooner.
• Thus, do not wait for your situation to get worst. Take action while you still have options.
