- 1). Make sure your credit is as good as possible before seeking an unsecured consolidation loan, since having an average or better credit score may be crucial to your success. Pay off any debts that are past due, don't apply for any other loans at the same time and make sure there are no mistakes on your credit report that might lower your score.
- 2). Total the balance due on the loans that you want to consolidate and also total the monthly payments, and check what the interest rates are. You'll want to find a loan with a lower interest rate than the average interest rate of the loans, you want to consolidate or lower monthly payments.
- 3). Look for unsecured consolidation loans to compare. Local banks and credit unions are a good place to start, but also check out credit cards that offer low interest rates for balance transfers. If you can transfer your balance due from your other cards to a lower-interest credit card, it will still be an unsecured loan and may result in lower monthly payments or at least a lower overall cost. Also, there are many places online that offer to match you with companies that provide unsecured consolidation loans; there are also banks or credit unions online that offer the loans themselves.
- 4). Compare interest rates and monthly payments and research the customer service and integrity of companies offering loans, especially those online that you may not have dealt with before. Check for customer complaints online or complaints with the Better Business Bureau and make sure the company is licensed to offer loans in your state.
- 5). Complete the loan application process with the company you choose, if you find a loan which suits your needs. Once you've received the proceeds of the loan, use it to pay off the loans that you're consolidating. If a low credit score is preventing you from getting a large enough unsecured consolidation loan and you're unable to keep up with your current loan payments, you may want to seek the advice of a credit counselor or see if you can negotiate settlements with some of your creditors, if you offer to pay them a lump sum that's smaller than the total owed.
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