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Debt Consolidation Loan with Bad Credit

By Edited Jun 21, 2015 0 2

Is it possible to get a debt consolidation loan with bad credit?

The simple answer is yes. Obviously it would be easier to get a debt consolidation loan if you had a great credit score, but usually the people who need to get consolidation loans have less than perfect credit scores. The easiest way to get a debt consolidation loan with bad credit scores is probably the simplest... apply. There are many companies that specialize in giving out debt consolidation loans for people with bad credit. My first piece of advice is to not worry about getting denied for a loan. If you are in a situation where you need to consolidate debt, the worst thing you can do is to let things pile up so high that you can't get out of the hole. Get some info from the specific companies offering these loans, and put pencil to paper to apply for a debt consolidation loan.

Why should I consider debt consolidation?

Debt consolidation can be a life saver for someone who has built up a significant amount of debt from different sources. One of the biggest advantages of getting a debt consolidation loan is that all of those monthly bills turn into one. It is much easier for most people to deal with paying down debt when they only have to worry about one bill coming in a month. One of the common reasons poeple fail to pay their monthly bills is the psychological weight of seeing bill after bill arrive on their doorstep. Even if you didn't get any sort of monthly savings from a debt consolidation loan, you would still receive the stress relieving benefit of not seeing countless bills pile up in your mailbox.

Debt consolidation loans are easier to get than you may think

When you are trying to get a debt consolidation loan with bad credit, you may be able to find debt settlement and negotiation services that do not even run a credit check. Often these debt consolidators will negotiate on your behalf to get you a single, affordable payment that is lower than your current payments. Some people worry that they must be a home owner to get a debt consolidation loan, this is simply not true. You can get a debt consolidation loan with bad credit, without owning a home, and sometimes even without having to go through a credit check.

If your main source of debt is from credit cards, you will probably find that debt consolidation is a perfect fit. Credit cards are notorious for having high interest rates. Even if you don't own a home to roll your consolidated debt into the mortgage, you will still most likely see a significant drop in your monthly payments. If you can manage to pay a higher amount per month to pay off your debt consolidation loan you will become debt free much faster. Getting a debt consolidation loan with bad credit scores won't make your debt disappear, but it will make paying down your debt a much easier task. Remember to check out the specific terms of companies that do debt consolidation loans, and get yourself on the road to living debt free.



Sep 10, 2010 11:42pm
The interest rate on credit card is really terrible. It can double the initial debt in a very short time.
Sep 28, 2010 12:15am
Phenomenal article that opened my eyes to the subject! It was well written, and you clearly know what you are talking about.
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