Your unsecured debt can qualify for consolidation. This type of debt relies on creditworthiness, such as your credit score, credit history, employment standing, income level, etc. Read on to learn more about the types of debt this includes.
Types of Unsecured Debt
If your unsecured debt has gotten out of control, you may need help paying it off. You can apply for a personal loan to pay for consolidated debt. There are companies like Symple Lending that can help you. If you can prove you can’t pay your existing level of debt due to financial hardship, a debt settlement company like Freedom Debt Relief can negotiate with creditors to reach a deal.
Both types of companies can work with the following debt:
Medical Bills
Unfortunately, the cost of medical needs is still a big issue for many Americans. Even with insurance, people can fall into massive debt if insurance doesn’t cover all expenses such as a major surgery. Layoffs from full-time jobs can cause a lapse in insurance that can be devastating, especially for an entire family. That is why medical bills are still the top reason Americans file for bankruptcy.
Student Loans
The United States has several colleges and universities that people come from all over the world to attend. However, the cost of such education isn’t cheap, so many American students rely on loans to complete their education. The government backs some of these loans, but some come from private lenders. You should check with your student loan lender to see which program you can consolidate loans under.
Credit Cards
Credit cards are a useful way to build credit history if you want to buy a home or apply for a business loan one day. However, it can be tempting to use them to live beyond your means. The interest rates on credit cards can vary, which affects how much debt you have to pay back monthly unless you pay the entire balance every month. A good solution is to transfer the balance of several high-interest cards into a new one with a lower interest rate. You can also check for one that has other incentives like cash-back or airline mileage.
Personal Loans
A personal loan is a loan that you can use for anything you want. You can use it to buy a new car, help your business, and pay medical bills. The most common reasons people get one is to consolidate debt, remodel a home, pay for a wedding, or emergencies.
The main thing all these loans have in common is they rely on your credit and other financial markers, such as the job you have. If you have a large balance that you are struggling to pay down, consider consolidating. Depending on your situation, some of the debt can be forgiven. Take the next step to financial freedom and see if consolidation or settlement is best for you.
