You’ve got a bad credit record. What debt consolidation loans are available to you?
Unfortunately you are looking for a way to consolidate either a credit card or other debt, but you have a bad credit history. But today there are many options available to you online which will help to consolidate these debts for you no matter what kind they are. However, when looking for such a loan the amount of information online can all seem just a bit too much and hopefully the information below will help to make your decision a little easier.
When you are looking to use a loan to consolidate debts you already have you will first need to qualify for that loan (just in the same way you would have done when you took out any loans originally). If you own your own home you may be able to arrange an equity loan (this uses the equity you have in the property at the time of the loan request) or it may be based on the value of the home so that the loan can be approved.
However you may be someone who qualifies for an unsecured loan which will consolidate your debts and you will only need to make a low monthly payment which is not tied into any assets that you have (home, car etc.).
Today there are some companies that will help you to manage your debt without you having to take out another loan and these companies will usually charge a fee when helping to negotiate lower interest rates with your creditors and also in helping you to manage the monthly payments agreed upon. There are a variety of ways in which this can be carried out and you will soon find that each company uses a different method for doing this. However, this technique will save you money in order for you to start paying down the principle amounts on any credit balances you have.
In fact some of these companies are definitely worth the fee that they charge as they can often save you much more money than the fee they charge you. However it is vital that you look at these types of companies very carefully as some are not legitimate and will sometimes keep the payments you have made to them for extended periods of time (a month or more) prior to actually making a payment to your creditors (a way for them to collect interest whilst the money is with them). This may result in you not only accruing late fees on your payments but also the possibly of the company you owe money to coming directly to you. With such companies as this they are likely to cost you more money and make your financial worse than it already is.
When looking for a debt consolidation company to work on your behalf is to be careful, and ensure that they are legal and have a long standing reputation prior to signing any contract with them.
Not only can consolidating your debts provide you with relief from the stress and worry related to it, but it provides you with breathing space when the time to pay your bills is due. There are cases where people are so badly in debt that they become overwhelmed by it all and find it difficult just to keep up with paying any bills that they have, so it is wise to consider ways in which the debt they have can be decreased and start paying it off within their means.
About the Author: Allison Thompson an expert author after becoming a work from home mum who runs a small real estate company in Spain. Due to her involvement in the property market she has carried out extensive research relating to all financial matters and a section specifically dedicated to all matters relating to Debt Consolidation. If you would like to learn more, please visit www.centrallendingservices.com/debt/.