subject: Do I Need Assets To Qualify With A Debt Consolidation Agency? [print this page] Author: Hector Milla Author: Hector Milla
Consolidations loans are the most widely used method to get out of debt. There are a number of different loan providers, from banks to private lenders. The most common myth of debt consolidation is that you need assets to qualify. This is simply not true. There are benefits to using assets, but they are not mandatory and they may increase your loss risks. Paula de la Torre Editor of the "Best Debt Consolidation Companies" website -- http://www.BestDebtConsolidationCompanies.net -- pointed out; Loans that use assets as collateral are far more desirable, by the lender. It gives them something that they can sell if the loan is defaulted on. That means that if something happens and you default on the loan, you risk loosing whatever asset you put up as collateral. This can be devastating, if your home that you have at risk. Asset backed, or secured, loans may provide lower interest, but they do present greater risk to you. But there are other ways to get consolidation loans First, you should visit an accredited lending institution, such as a bank or credit union. They will often provide personal loans or signature loans. These are unsecured loans that have a higher interest rate than secured loans, but the rates are typically far less than those of credit cards. Your interest rate is based on your risk factor. Meaning, how risky are you to the lender. Your credit scores, monthly budget and proposed repayment are all taken into account. In some cases, the banks and credit unions cannot help you. Then you will need to find a private lender. Private lenders will charge higher interest rates, because they know that you were too great of a risk for a bank to take. You will want to make sure that you understand the payments, terms and any sort of fees associated with a private loan These are just a couple examples of lending that does not involve assets. Debt consolidation can be achieved without owning your own home or car. When you have these unsecured debt consolidations, you may pay a little more, but you risk far less than traditional asset backed loans. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.netAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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