Bad Debt Unsecured Loans: Money Without Any Collateral

By: Alec Recce

Bad debt unsecured loans are meant for people suffering from bad debt. If you have taken debts that you are not able to manage or pay off, you will not face any problem as far as availing a loan is concerned. You can avail bad debt unsecured loans to pay off all your previous debts. This way you will be answerable to only one lender instead of many. Also you will have to pay only one monthly installment.

Bad debt unsecured loans are unsecured in nature. You don't need to place any collateral in order to avail bad debt unsecured loans. It is specially designed for people who don't have any personal property to place as collateral like tenants and paying gusts. Homeowners who don't want to risk their property can also avail bad debt unsecured loans.
Bad debt unsecured loans are open to bad credit borrowers also.

If you are facing arrears, defaults, CCJ, IVA, bankruptcy etc you can still avail the benefits of bad debt unsecured loans but the interest rate is slightly higher compared to good credited borrowers. Also you will have to convince the lender regarding your repayment ability. Bad credit borrowers can improve their credit score by paying the loan installments regularly and on due time.
With bad debt unsecured loans you can avail an amount ranging from ?500 - ?25000. Lenders advance the loan keeping in mind various factors like credit status of the borrower, repayment ability, bank details etc. Bad debt unsecured loans are short term loans with repayment duration that ranges from 1-10 years. Bad debt unsecured loans carry slightly higher interest rate compared to other loans because lenders take risk by advancing loans without any security. Also the loan is advanced to people already having bad debt.
There are certain prerequisites for availing bad debt unsecured loans.
1.Borrower must have a full time job and regular source of income.
2.The monthly income of the borrower should be at least ?1000 a month. Borrower will have to show the details of last three pay slips to the lender.
3.Also the borrower must be at least 18 years of age to be eligible to avail bad debt unsecured loans.
Bad debt unsecured loans are the easiest way to get rid of your bad debt by paying them off.

Unsecured Loans
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