What is a Fresh Start Loan - Do I Qualify?

It seems that everyone is a bit strapped for cash with the economy in such upheaval and many individuals losing their jobs and being forced into the unemployment line or other jobs. You may be among those who are up to their eyeballs in debt. No matter how hard you work you never seem to be able to catch up with all of your monthly bills and obligations. That is where a fresh start loan can help.

Pay Off Your Creditors

It is meant for those borrowers whose debts and bills have simply gotten to a point that they are out of control. If your income is no longer up to speed with your monthly payments that are due, then the fresh start loan can give you a way to start over without entering into bankruptcy.

A fresh start loan is written in the amount of all the debts that you owe with the fresh start loan lender paying off all of your current creditors. In turn, you will make one monthly payment each month that represents everything that you owe. The new payment will be less than the total of your current combined payments which will allow you to keep more money in your wallet each month, thus improving your way of life and keeping you from going further into debt.

Getting Your Fresh Start Loan

Your fresh start loan can be secured or unsecured. The secured version is always the less expensive choice in terms of interest, and is easier to obtain as well because your lender is not taking a risk when you pledge security in the form of your home or other property of value. The lender will place a lien upon the property until you have completely repaid them for the amount of money that they extend to you.

Secured fresh start loans have smaller monthly payments than unsecured ones, which makes them easier to manage and allow you to keep more of your monthly income for other purposes. The unsecured fresh start loan is great for borrowers who either do not wish to risk their assets or do not have assets to risk, although it is harder to obtain and it will cost you more interest.

You will also have a bigger monthly payment and will be required to repay your lender in a shorter period of time. You might also consider applying with a cosigner who has good credit to improve your chances of getting the amount of money that you need.

Online Fresh Start Loans

Online is the best place to shop for it. Online lenders offer higher approval ratings and lower interest than you will find at your local bank or credit union and they offer the convenience of a paperless application that is easy to complete from your home or office.
Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products.