If you use the card for anything else, the other charges may generate interest while payments are applied first to the no-interest balance.

Also, the no-interest or low-interest period is generally limited.

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For example, in many instances interest paid on loans secured by real estate is allowed as a tax deduction.

A single monthly payment with a lower interest rate is likely to ease your financial burden substantially.

And, while the interest rate may be higher than a secured loan, it may be less than is charged on several different credit card balances, thereby lowering your interest burden and your payment.

An unsecured debt consolidation loan may be hard to get if you don’t have sterling credit.

The theory is that one payment will be easier to manage.

The goal is to lower the interest rate and the monthly payment while paying off your debt more quickly.

A variety of financing firms will also loan you money against lawsuit claims, lottery winnings, and annuities. Lower interest rates will likely make the monthly payment lower and more affordable.

Sometimes, the interest payments are even tax deductible.

If you can’t pay the loan back, you could lose your house, car, life insurance, retirement fund, or whatever else you might have used to secure the loan.

Certain assets, such as life insurance or retirement funds may not be available to you if the loan is not paid back before you need to use them.

While unsecured personal debt consolidation loans used to be quite common, they are less likely to be available to people who need them today.