What is a Debt Consolidation Loan
Debt Consolidation loans enable the borrower to roll existing unsecured debts such as store cards, credit cards and other personal loans into a single loan.
If you are not a home owner and have a good credit history as well as a steady history of employment, you may be able to obtain a Personal Loan for Debt Consolidation.
These loans are generally offered by the major banks, therefore, having a clean credit history and steady employment is important in order to qualify.
If your credit history is less than perfect but you are a home owner, then you may qualify for debt consolidation using your mortgage or perhaps your motor vehicle.
Home owners with little equity n their property or borrowers who have no home and have a poor credit history may need to consider alternative debt consolidation methods. If you are having a difficulty meeting your debt repayment obligations, then you may be able to reduce your debt repayments as well as debt balances via a debt agreement.
If you are on the brink of Bankruptcy with creditors hounding you from all directions, it may be worth considering a Part 9 Formal Debt Agreement.