How to Eliminate Unsecured Loans
The process of eliminating an unsecured loans is a rather simple process that is most often achieved by using some form of a debt negotiation method. Unlike a secured loan, an unsecured loan isn't attached to real estate or other investments making it easier to negotiate on your terms.
- Look over all your available cash in your checking, savings or investment accounts. Review these accounts to see how much money you can really afford on eliminating your unsecured loans.
- Collect all of your credit account statements and bills. Generate a numbered list of any of your unsecured loans. Place the accounts that are the most delinquent at the top of the list and place those results that are current near the end of the list. From there, structure the list so that the accounts with the highest interest rates are in higher positions than those accounts with lower interest rates. You'll want to pay off those accounts that are charging you the most in interest rather quickly.
- Speak with the credit account companies. Any unsecured debt that is past due more than 90 days is generally eligible for a settlement offer. Typically, these companies are more concerned with receiving some money rather than none. If you make a responsible offer toward the debt, the companies will more than likely accept it. Ensure that you get any settlement agreement in writing to protect yourself.
- For those accounts that will not accept your settlement offer, attempt to make payments in full in order to pay off the debt. If you only make small payments toward the unsecured loan amount, you will still incur interest which will prolong the amount of time it takes to eliminate the debt.