Unsecured Debt Consolidation – What to Do if You Have No Collateral

Many people are faced with debt, but feel they have no chances of getting a loan unless they have some sort of collateral that can be used. Fortunately, that is not the case. It is possible to get an unsecured debt consolidation loan with no collateral.Unsecured debt consolidation loans allow you to get the money you need to consolidate your debt without having any collateral. Lenders who provide unsecured debt consolidation loans rely only on your promise to repay the money.Benefits of Unsecured Debt Consolidation LoansThough rates are often lower on loans that have some sort of collateral placed against them, there are many benefits to getting an unsecured debt consolidation loan. One of the biggest is the fact that you can borrow a significant amount of money without having to pledge important collateral, such as a house. This way, if you do default, you have much less to lose. Another benefit is the ability to consolidate all of your debt into one easy monthly payment.Getting Approved for Unsecured Debt ConsolidationTo get approved for an unsecured debt consolidation loan, you will need to have a relatively good credit history or verifiable employment and a low debt to income ratio. Some lenders offering unsecured debt consolidation loans require a minimum credit score before they will guarantee approval. Others are more flexible. Because qualifications vary, it is a good idea to take the time to shop around and find a lender who is willing to work with you. If you get turned down by the first few lenders you contact, don’t get discouraged. The lending market is competitive. If you try hard enough, you will eventually find someone who is willing to offer you the money you need.