When you have no other choice to pay off your debts on your own, you need to look for immediate solution so that your credit score will not be damaged in the long run. You may consider debt consolidation loan as one of your solutions. In order to "double confirm" whether this type of loan is suitable for you, you need to take the following steps:
Step 1:
First of all, know how much exactly your unsecured debt is. In order to be accurate, you are advised to request a copy of your credit report from one of the main credit reporting agencies. In order to be fast, you could request from an online credit monitoring company, i.e. MyFICO.
Step 2:
In order to know whether you are qualified for the loan, you should contact a few different debt consolidation agencies to get the details of their qualification requirements. In general, the basic qualifications are as follow: possessing house, satisfactory credit score and steady employment.
Step 3:
Once you know you are qualified, you can request the agencies to provide you their quotes based on your loan amount. You need to be clear about the interest rates offered so that you can do a thorough comparison to see which package helps to save more cost.
Step 4:
At the same time, you should also work out your monthly budget. You need to make sure that you can afford to pay the monthly repayment with your current income. If you can't afford to pay, then this loan is not right for you. Unless you can afford for the monthly commitment, then you apply for the loan.
Last but not the least; even if you find out that debt consolidation loan is suitable for you, you need to be careful and disciplined enough in spending your money. Without self control, you will end up spending more money on interest over the life of the loan.
Is Debt Consolidation Loan Your Best Option?
Wednesday, October 14, 2009
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