Do I Qualify for a Debt Consolidation Loan?

Before you apply for a debt consolidation loan, you want to ask yourself the most basic question: Do I qualify for a debt consolidation loan? The answer will depend on four factors:

First, what is your income? The lender must assess your ability to repay the loan. If you are not working, or if you have low income, you probably won’t qualify for a debt consolidation loan.

Second, how much do you want to borrow? Obviously it is easier to qualify for a $10,000 loan than for a $100,000 loan. The more you want to borrow, the higher your income will need to be.

Third, do you have any security or collateral for the loan? If you want to borrow $200,000, and you have a house worth $400,000, it will enhance your chances of qualifying for a mortgage debt consolidation loan. If you don’t own a home, or if your home has no equity, you won’t qualify.

Finally, what’s on your credit report? If you have bad credit, it’s unlikely you will qualify.

To find out more, try our free debt consolidation loans calculator to see if you qualify.

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