Low Interest Debt Consolidation Loans

The average American family has 14 credit cards with this fact in mind, is it any wonder that many Americans now face credit card debt. The availability of easy credit has fooled many consumers into getting into debt without considering how they would pay for it if economic conditions ever changed. Therefore finding low interest debt consolidation loans has become a priority for many.

How to best to tackle this dilemma depends on whether you are up to date with your payments and are still credit worthy, if you have credit card debt it is worth calling your credit card provider and simply ask for a better interest rate, surprisingly this option doe’s work, you’ll get an answer immediately, if your credit card provider declines your request you can apply for a new credit card with a competing company and get a zero balance transfer, some companies are offering up to 24 months interest free. Get a Low Interest Credit Card - Apply HERE

Unfortunately so many consumers do not have the luxury of transferring their cards simply because they have way too much credit card debt that is not transferrable therefore debt consolidation may be the only option.

Home Equity Loan

To get the best low interest debt consolidation loans: you will need some form of security, if you are a homeowner this will enable you to get the best possible interest rate as the risk to the finance company or bank is considerably less. The best low interest debt consolidation loans are offered to consumers with collateral. Based on the equity a person has on their home, a bank or credit union will issue a loan based on a percentage of equity a person has built up over time. The percentage rates will be adjustable but will be much lower than an unsecured loan.

Home Equity Loan Drawbacks

While it is a good idea to consolidate all loans into one monthly payment, the home owner should seriously consider is it worth risking any further debt on the most valuable asset that they have their home; As their present earnings and income may be enough to cover for the payments now but what if the worst happens and interest rates go to a high that exceeds the monthly budget or if income levels drop or worst lose their job through redundancy.

Carefully check all the fine print as some of these loans have a variable APR and may go up

Home Equity Refinance

If you have little or no debt on your home and you are just looking to consolidate existing high interest debts like credit card debt, then it would make sense to round up all those debts into one monthly payment that will cost considerably less in interest payments alone.

Unsecured debt consolidation

To obtain an unsecured debt consolidation loan will generally be more difficult and the interest would be higher than a secured loan due to the risk element to the lenders.

Unsecured debt consolidation requires an excellent credit report as well as meeting the banks strict lending criteria, stability of income and income level are also factors that are used in the evaluation process.

Alternative Loans

There are other avenues to secure finance and they are still a relatively new concept, there are no banks involved that means less cost in setting up the loan.

You will require a good credit history to be accepted it involves just investors wanting a return on investment and borrowers wishing to able to get credit everything is handled online there are the usual credit checks on your credit profile. Borrow With Prosper! allows borrowers to apply for almost any type of loan their interest rates are more competitive than banks but you will need an AA rating to acquire this.

With Prosper you can apply a loan whether it is for debt consolidation, home improvement, car loan or even a business loan

However many consumers that are in credit card debt without any form of collateral may find their options are limited, if you find yourself in this situation the alternative may be to look for debt solutions with a Debt Relief Company.