What Is the Easy Way to Consolidate Debt?
When you consolidate debt, you combine several loans into one loan. A typical consolidation loan requires collateral. The easy way to consolidate debt without collateral is to use an unsecured personal loan that offers you lower interest rates with no collateral requirement.
Why Consolidate Debt?
People get into debt in a variety of ways. They may be paying off student loans, medical expenses, or credit card balances. They may need to finance a major purchase that can’t be paid for with their normal cash flow.
If you have multiple debts to manage, you’re faced with writing numerous checks every month. You need to work with each lender separately to make any changes to your payments. It’s more difficult to get the most beneficial loan when there are many lenders to work with.
There are good reasons to consolidate debt. You’ll simplify your bookkeeping by working with just one lender.You can usually reduce the overall interest rate you’re paying, which cuts down the amount of your monthly payment. Additionally, taking control of your debt will help you to protect your credit rating and could get your out of debt faster.
Do You Need Collateral to Consolidate Debt?
When people think of consolidating debt, the first thing that comes to mind is that they need collateral to guarantee the loan. For example, if you borrow money against your car, you’re using your car as collateral. It reduces the risk for the people lending to you because they can repossess your car to pay your debt if you can’t make the loan payments.
While collateral makes lenders happy, many borrowers would prefer not to put the things they own at risk. For example, if you use your home as collateral and something unexpected happens that prevents you from paying off the loan, you could lose your house. If you’re in a bad situation where you can’t make loan payments, the last thing you need is to end up homeless.
Unsecured Personal Loans Eliminate the Need for Collateral
In recent years, unsecured personal loans, also known as peer-to-peer loans, have become more popular and advantageous to all involved. With peer-to-peer lending, an individual can get a loan from other people, not financial institutions. Here’s how it works.
The person who wants to borrow funds submits a loan application. People who are looking to invest fund that loan—usually there are multiple investors involved to reduce each lender’s risk. The investor can build a diversified portfolio based on a comfortable level of risk, and the return is usually higher than an investor can get elsewhere. It’s a win-win proposition.
BTCjam: The Easiest and Best Way to Consolidate Debt
BTCjam offers a unique way to consolidate debt into an unsecured personal loan. What makes it unique is that the financing is done using BitCoins rather than dollars. Using BitCoins reduces the costs involved in managing the loan and loan payments. With fewer costs, loans can post a higher return to attract more investors.
BTCjam uses a proprietary Global Credit Score algorithm to accurately assess each loan’s risk. Investors can choose the level of risk they want to tolerate. Investors are also encouraged to fund different types of loans, which further reduces their risk.
Since investing at BTCjam is so attractive, borrowers get the advantage of a large pool of investors to fund their loans. Borrowers can define the rate they will pay and how the loan will be repaid. The interest rates are lower than those a borrower would find at their bank.
If you are planning to consolidate debts, BTCjam is the place where you can get the best loan available. Visit our website at BTCjam.com for more information and to get your unsecured loan started today.