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By Everett Maclachlan
Debt is something that has been around since time immemorial. In fact, the day that money was invented is likely the day that debt first raised its ugly head.
In fact, debt in and of itself is not such a bad thing. For example, individuals, small businesses and large corporations alike use debt as a valid financial tool. It is a way to get money immediately to use for investments, daily living expenses, or to make very large purchases.
For individuals, the point at which debt becomes a problem is when it gets to be so large – and the combined interest rates so high – that it become unmanageable. In this sense, unmanageable would mean that the person feels like no matter what they do, they cannot seem to pay it down. It just continues to spiral out of control.
If you are carrying a large amount of debt, much of it with high interest rates (such as high-interest credit card debt), one potential way out for your is to consolidate your debt. Consolidation simply means taking out a new loan – usually at a lower interest rate – and paying off your existing, higher-interest loans with that money. The result is a net lower monthly debt payment.
The challenge is when you are having trouble taking out a loan, due either to having a poor credit score or because you do not have any collateral to put up against the loan. This is where a personal loan comes in.
Here are 5 steps to help you consolidate debt with a long-term, personal and unsecured loan:
1. Decide how much debt you have that you would like to consolidate:
Start by adding up all of your existing debt that you would like to pay off through consolidation. Make sure to include, at the very minimum, your higher-interest credit cards, bank cards, and department store cards.
2. Research personal loan lenders:
You will have a much better chance of getting approved for your loan if you start with a list of multiple personal loan lenders. Create for yourself a list of at least 5-10 personal loan lenders. Sound like a lot of work? Not really: with the right web resource, you should be able to come up with a list that size in less than 20 minutes. And, what is a little bit of extra effort when the stakes are so high?
3. Narrow your list down to 3 lenders that specialize in long-term loans:
Now, research the website of each lender on your list. Then, narrow it down to 3 lenders who seem the most promising. To judge which are promising, look for words like “long-term loans” and “unsecured” on their websites.
4. Research your credit score:
Before applying, go ahead and run your credit report with the big three credit bureaus. Your score will vary a bit from one to the next, so be sure to run all three.
5. Apply and negotiate:
Now, it is time to apply for your loans. Have your credit reports nearby so that you can be ready to explain away any glitches in your report which could be keeping your score down further than you would like. And, make sure to negotiate with each lender by refusing their first offer every time. You can always go back again later if they balk at your tactics!
Follow these 5 steps to getting a personal, unsecured loan for your debt consolidation.
About the Author: Get a fail-safe how-to guide on securing a personal consolidation loan today at:
Miracle Bad Credit Loan Source