Consolidate Personal Loans Using Credit Card Debt Settlement

Author: Steve Bis

2008-01-05 Word Count: 357 Category: Loans

This impending year is going to be tough for the American economy with many citizens over their heads with unsecured debt leaving many people looking to consolidate debt loans. When most debtors begin looking for a way to manage their unsecured debt they usually look for a debt consolidation loan to clump it all into one payment. This may not be a bad idea if you are currently able to pay your outstanding debt because it can make life a lot easier when it comes to making the monthly bills.
But if you are not able to keep up with the payments chances are you more than likely will not obtain any debt consolidation loans even if your home is used as collateral for the loan. The reason is that most individuals think that they have good credit because they have been consistently on time. However they don't know that the most important factor when obtaining a loan is their debt to credit limit ratio, so if your total sum of debt is above 50% of your total credit limit chances are you won't be able to get any debt consolidation loans. If you have already fallen behind and missed payments then chances are that if you were able to land a loan to consolidate your debt the APR can be so high that it would not make much of any sense doing it.
The more loan applications that you fill out actually lowers your credit score up to 5 to 10 points for each one so after only applying to 4 or 5 services your credit score could be lowered by 50 or more points making your chances become close to zero for getting your loan.
If you are like millions of individuals that realize staying current with the monthly minimum payments on bills like credit cards is going to be impossible than you may want to get in touch with a professional debt settlement attorney. If you meet the requirements you may be able to save up to 50% of what your current debt balance is in as little as 36 months.

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Steve Bis is a debt analyst with the US Consumer Advocate, which practices debt settlement (www.uscaonline.com/What_Is_Debt_Settlement_Credit_Card_Debt_Settlement_Programs.html).