How Do You Get A Bill Consolidation Loan With No Collateral

How Do You Get A Bill Consolidation Loan With No Collateral



How Do you​ Get a​ Bill Consolidation Loan with No Collateral?
There are several ways to​ get a​ bill consolidation loan with no collateral .​
However,​ let’s discuss one of​ the​ most commonly used bill consolidation loans.
The most popular no collateral loan is​ referred to​ as​ a​ credit card debt consolidation loan .​
What people generally do is​ transfer as​ many debts as​ possible onto one credit card .​
It’s much easier to​ keep track of​ one company and one payment than it​ is​ multiple companies.
There are several reasons this option is​ used .​
First,​ there is​ no long process approval and mounds of​ paper work to​ go through .​
This type loan does not require that you​ put up collateral .​
In addition,​ many major credit card companies offer very favorable terms for consolidating all your bills onto their credit card .​
They offer two compelling reasons:
1. They offer you​ several months of​ payments with no interest .​
You should be able to​ get a​ twelve-month no interest option .​
2. They normally offer you​ a​ much lower interest rate at​ the​ end of​ the​ twelve-month grace period .​
This is​ usually much lower than your current interest rate.
This is​ very attractive for many people that have no collateral for a​ loan .​
However,​ there are some very definite drawbacks .​
Be sure to​ read the​ fine print of​ the​ agreement .​
There are usually three potential problems:
1. If you​ fail to​ make a​ payment on​ time,​ the​ grace period may immediately end .​
However,​ that’s not all .​
You will more than likely be given a​ higher interest rate than you​ would get at​ the​ end of​ the​ twelve-month period .​
Therefore,​ you​ could be worse off than you​ were before you​ started the​ consolidation loan.
2. If the​ credit card payment does not process correctly,​ your payment will be considered late .​
The same penalties described above are applicable .​
Note: It is​ very important that your write down and document every payment you​ make .​
Write down the​ day you​ paid,​ the​ amount you​ paid and the​ check number you​ used .​
If any problems occur,​ you​ can have the​ facts and figures available to​ dispute the​ late payment.
As a​ side note,​ consider using an​ online payment option .​
Online payments can be used to​ automatically pay your bill on​ a​ specific date .​
They also track what was paid and when.
3. If you​ go over your credit card limit,​ there will be problems .​
They range from penalties and extra fees to​ termination of​ your grace period .​
If you​ decide to​ use a​ credit card bill consolidation loan with no collateral,​ be sure to​ make your payments on​ time .​
Ideally,​ you​ should pay as​ much as​ you​ can each month .​
This can significantly reduce your debt over the​ twelve-month period because all of​ your payment is​ for your debt with no interest charge .​
Also,​ don’t make any additional charges on​ your credit card .​
You want to​ reduce your debt,​ not increase it.
Now that you​ know some pros and cons for getting a​ bill consolidation loan with no collateral,​ do your homework .​
It would probably be wise to​ talk with a​ debt management counselor to​ get an​ outside objective opinion.




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