Unsecured Debt Consolidation - The Ways to Get Rid of Debts!

You have many different options when it comes to unsecured debt consolidation. This is the type of debt that does not have property attached to it. This is unsecured because it is not a loan against an automobile or against a home. This type of debt is easier to settle and can in many cases be done for a reduced amount of what you owe. Here are your options for debt consolidation. debt consolidation loans

First, if you want to get all your debts taken care of in one shot you can use bankruptcy. This is a last resort and is not recommended unless you are in a very desperate situation and you really cannot see any other way out. When you file for bankruptcy you get a fresh start, but it will ruin your credit for the better part of 3 years. This will stick with you for at least 7 years as well so keep this in mind. debt consolidation loans

Second, another option for unsecured debt consolidation is to use a credit counseling service. These are not for profit services that do charge a fee and will help you settle your debts and get your finances under control. They will work with your creditors to get you lower payments and interest rates. To be aware that when you use this option for unsecured debt consolidation they will often ask you to work a second job, sell things you do not need, and move into a less expensive home. debt consolidation loans

Last, the best option is a debt service that will work with you as long as you have over $10,000 in unsecured debt. They will negotiate with all your creditors for reduced balances, payments, interest rates, and waived fees. Then, they will combine all your creditors into one monthly payment that fits your budget along with their fee. This will be paid to them monthly and they will split it up for you and pay all your creditors. You can be debt free in less than 36 months with this option.