A secured loan, as you probably guessed, requires you to promise to give something of value to the lender if you fail to repay the loan.The lender seizes the security in a process called repossession, and sells the security in an auction to repay all or part of the balance due. From a borrower's perspective, lower is better.You can find an unsecured debt consolidation loan at national banks, local state-charted banks, and credit unions.The table below compares rates and terms for the national banks plus two peer-to-peer lenders. As mentioned above, rates for unsecured loans are higher than secured loans.Follow the link just mentioned to learn more about the positives and negatives of credit counseling.The third option to an unsecured debt consolidation loan is .
The second step of credit counseling is where the counselor convinces your creditors to agree to a debt management plan (DMP).A lender may choose to deny the application of a person with a low credit score.Or, a person with low score may be offered a rate much higher than an otherwise identical person with a high score.A cash-out vehicle refinance from Wells Fargo can be had for as low as 4.42%, which is the range of home mortgages.Why does Wells Fargo price a cash-out vehicle refinance so low? And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward –- and free. " Debt consolidation is a strategy to roll multiple old debts into a single new one.