Consolidating car loan and credit card

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In contrast, an unsecured consolidation loan isn’t tied to collateral.Because of that, it’s less risky to you — by defaulting, you’re mainly risking credit damage instead of your house, car, or other assets.If you have multiple balances bogging you down, combining them into a single, lower-interest loan can help put you on a more straightforward path to debt freedom.A debt consolidation loan allows you to combine several high-interest debts into a single new loan, ideally with a lower interest rate and better terms.

Home equity loans are among the most common kind of secured debt-consolidation loans.Because the lender takes on more risk with unsecured loans, you’ll probably be offered a higher interest rate and a smaller amount, and there are no tax benefits.Personal loans, credit-card balance transfers, and loans offered solely for the purpose of debt consolidation are among your options here.If you need a secured loan to consolidate your debt, you’ll likely be limited to a brick-and-mortar lender such as a bank or credit union.If you’re considering an unsecured loan to consolidate your debt, you’ll have more options.

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