With poor credit, you can reduce your loan costs and monthly payments by consolidating debt with an unsecured personal loan. Even without collateral in the form of property or assets, you can find lower rate loans. The key is to look online for special offers that fit with your financial plan.

Consolidating Small Balances With 0% Transfers

For accounts with balances of less than $10,000, applying for a credit card with 0% on transfers is a great way to get a jump on eliminating your debt. Before signing up for one of these offers, be sure you investigate the claims carefully. It is very easy to get misled, especially if you have a bad credit record.

Start by asking how long the 0% transfer is good for. Dates can range from six to eighteen months. Next, ask what the interest rate will be after the incentive period. Here is where you can get caught paying a higher rate than your original loan. And finally, request a quoted rate based on your credit standing. This written estimate will protect you
from future changes.

Merging Larger Balances With A Personal Bank Loan

If you want a longer payment schedule or to tackle a larger debt, apply for a personal bank loan. With rates lower than most credit cards, you can easily reduce your monthly payments. Of course the drawback is that over the total life of the loan, you may end up paying more interest.

Bank loans usually have adjustable rates, but you can find fixed rates. With a fixed rate, you protect yourself from unpredictable rate hikes and an extended loan period.

Be A Smart Credit Shopper

No matter which type of personal loan you pick, check a number of lender sites to guarantee that you are getting the best available rates and fees. Ask for a loan estimate, especially if you don't know your credit standing. This will protect you from any surprises and give you numbers
to make a real comparison with.

It just takes a little bit of time to start saving yourself money and improving your credit.

Go to http://www.debtsanity.com for more information on how to find the best Debt Counseling Service.