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Learn more about financial jargon by reading a Glossary of Financial Terms.
Revolving credit is a type of loan that you can access on demand, up to a limit predetermined by your lender or credit card issuer.
But debt consolidation isn’t a one-size-fits-all solution.
The first step in choosing the right debt consolidation loan is to assess your current debt load and determine what can be consolidated.
Secured personal loans, on the other hand, are based on the value of an asset, plus credit history and ability to repay.
An asset used to secure a debt is called collateral.
Whether it's caused by job loss, a death of a spouse, personal or family illness, overspending, or other factors, the financial difficulty can usually be overcome through a self-administered financial plan, debt assistance programs, or a combination of the two.
Many people burdened with a heavy unsecured debt load often do not consider debt assistance programs.
Personal loans and credit card balance transfers are two ways that consumers can consolidate credit card debt. An unsecured loan is not supported by an asset such as a house or car.People often consolidate: The content provided is for informational purposes only.Nothing stated is to be construed as financial or legal advice.For more tips on managing debt, read 5 Surprising Ways to Help Manage Credit Card Debt. Therefore, the interest rate can go up or down, resulting in payments that may change.With a variable-rate loan, the interest rate is based upon an economic index such as the Prime Rate or the U. The interest on a non-variable interest rate loan is not based upon an economic index.