Avoiding Bankruptcy Or Foreclosure With A Fresh Start Loan

Have you gotten to a place in your financial life that you are considering filing bankruptcy? If your home in danger of going into foreclosure? Do you have so many debts that your current income just cannot handle them all? If so, then you should consider taking out a fresh start loan that can help you get your finances back on track and help you avoid bankruptcy or foreclosure.The economy has taken some pretty rough turns lately, and many individuals have experienced the brunt of high prices on necessities such as groceries and utilities while possibly suffering from layoff or a reduction in the amount of hours that they are allowed to work due to many companies going bankrupt themselves or starting to outsource labor overseas to cut costs. Never in history has it cost so much just to buy things that every family must have, and people have less and less money to spend which causes mounds of debt to form. You can use a fresh start loan to help get you out of your horrible financial situation in no time.Pay Off All CreditorsA fresh start loan is a loan that encompasses every debt that you owe, and your fresh start loan servicer will pay off your current lenders while allowing you to make one payment to them each month. With just one payment covering all of your debts, you will be able to keep more of your regular monthly income in your pocket and out of the hands of your current lenders. The fresh start loan will allow you to live a better quality of life without skimping buy on the typically meager income that is left after you pay lenders and creditors each month.Secured And Unsecured Fresh Start LoansYour fresh start loan is usually secured by the equity you have in your home. This type of fresh start loan is known as a secured fresh start loan, and it is the easiest type to obtain for all borrowers. Your fresh start lender would place a lien upon your home until your fresh start loan is paid off, which is a relatively simple procedure. By pledging collateral for your fresh start loan, you stand a better chance of being approved, will receive a lower interest rate, and will be offered a fresh start loan with lower monthly payments that are easy to manage.For those borrowers who do not wish to risk the equity that they have in their home or do not own a home, there is also an unsecured fresh start loan. The interest rate will be higher, as will the monthly payment amount for your unsecured fresh start loan, and you will be required to repay the lender in a shorter period of time. However, even the unsecured version of the fresh start loan allows you to avoid bankruptcy and other negative effects, and will free up some of your monthly income for other purposes.Online Lending SolutionsYou can find both the secured and unsecured fresh start loan products that you need by using an online lender. Lenders who do business on the Internet typically approve a greater number of borrowers for fresh start loans than traditional banks and credit unions.