All About Unsecured Debt Consolidation Loans

Unsecured debt consolidation loans are consider advantageous and flexible financial instruments for many borrowers who can no longer keep up with their debts or simply need some extra cash. However, in order to really benefit from them, you need to know more on the subject and analyze each offer carefully.

Eligibility Requirements

The requirements, when applying for this variety of consolidation loans, usually cover the following aspects:

  • Age – Applicants have to be at least 18 years old, provide their Social Security number and proof of having a physical, stable address on the US territory.
  • Proof of income consistency and stability – One of the most important requirements when applying for unsecured debt consolidation loans is to prove a stable income, consistent enough to cover your debts and allow you to live decently. The higher the income is and the longer your history with your current employer, the better your chances of getting the loan are. Read reviews here - http://www.toptenreviews.com/money/debt/best-debt-consolidation-companies/.
  • Driving license and recommendations – Yes, some lenders want to know that their clients can still provide for their loved ones in the unfortunate event of losing their job, and a driving license and recommendations from previous employers are usually the best proofs in this sense.

Main Advantages of Unsecured Debt Consolidation

  • No collaterals - In order to obtain the loan, you do not have to bring any valuable assets as guarantee. This way, even if you default on some payments, you do not risk losing possession of the house or vehicles in your property.
  • Less paperwork – As opposed to secured loans, fewer documents have to be submitted when you apply for unsecured debt consolidation loans, saving you the time and trouble of additional paperwork.
  • Quick response - As a result of involving fewer documents, your application is easier to analyze and you get your answer much faster. If you choose to apply online, the response period is even shorter.
  • Financial benefits – The application fees are usually lower than those of secured loans, as no properties have to be appraised and the application analysis process is less troublesome.

While these are valuable benefits, it is important to remember that, from one lender to the other, unsecured debt consolidation loans can have quite high interest rates, so it is very important to search the market carefully and plan your finances thoroughly, so as to make sure that the costs are worth paying and you can keep up with them.