Overview

Unsecured debt consists of a debt you owe that isn’t linked to an underlying asset such as an automobile or a home. Essentially, it is a debt based solely on your promise to repay the loan. Some examples of unsecured debt are credit cards, personal loans, personal lines of credit, medical bills, etc. Excessive unsecured debt is the most common cause of financial difficulties. One way of addressing problems related to excessive unsecured debt is through various forms of unsecured debt consolidation.  Click here to see a list of lenders or lending services that offer both secured and non-secured loan programs depending on your needs.  

Unsecured debt consolidations can take many forms ranging from transferring the balance of several credit cards onto a single card to a complex Debt Management Plan (DMP) administered by a Credit Counseling Agency. On one end of the continuum, transferring credit card balances is a solution that you can implement easily on your own. On the other end of the continuum, a DMP is a process that requires the assistance of professionals to mediate between you and your creditors. The more complex your situation, the more assistance you will need to address your situation.

If your situation is complex, then you will need to find a certified credit counselor. This is a critical decision that can profoundly impact your finances for years to come. See Selecting a Credit Counselor for addition information about things to look for in a reputable credit counseling agency. Regardless of whether you ultimately utilize a credit counselor they can be an invaluable source of information and education.