Consolidating secured debt
However, if you fail to pay back what you borrowed, the creditor can’t just come and take any of your property to pay back your debt.So any type of debt that doesn’t have collateral can usually be consolidated.Secured debts mean that you’re getting something in exchange for what you’re paying.So you get a house for a mortgage and a car for your auto loan.The main type of debt that we don’t work with – which is an easier way for me to answer your question – is anything that’s secured, which means if you didn’t make payments, is there something they can turn off or take away.If you owe money to the electric company, if you don’t pay them they’re going to turn your electricity off.Provide any supporting documentation including tax returns, pay stubs, W-2s and bank statements.
Basically debt is split into two groups when it comes to what can and can’t be consolidated using a debt management program – secured and unsecured.
Provide a list of the debts you want to consolidate.
Often, there is a dedicated section on the loan application for this purpose. Include the creditor name, amount due, monthly payment and due dates.
While it’s not as drastic as debt settlement or debt management, debt consolidation has its own pitfalls that you need to be aware of.
If you need help educating yourself on your debt consolidation options, you can start with the section titled “What is Debt Consolidation?
I’ll also explain what debt consolidation is, different types of debt consolidation loans, where to get debt consolidation loans, alternatives to debt consolidation, and how to avoid scams.