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Bad Credit Debt Consolidation – The Inside Scoop
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Bad Credit Debt Consolidation – The Inside Scoop

What shape is our credit in? Do you feel like you are drowning with trying to keep all your bills current? You may be finding it hard to make even a minimum monthly payment. If you see your credit score falling because you can’t keep up, you may need to check into bad credit debt consolidation.

You may find it possible to take some of the pressure off by consolidating your debts into a lower interest loan and make one monthly payment. You may be wondering how that could work since you are already in trouble.

This type of debt consolidation is sometimes done when a person receives an offer to transfer the balances of their current cards to one card that will carry a lower interest rate. Being able to have one bill instead of several could be very good. Lower interest rates are also very nice. This can be a quick and relatively painless fix to your current budget crisis.

The one thing you must be aware of when doing this type of consolidation of debt is the long-term interest rate of the new loan or credit card. If that low rate only lasts a few months and then jumps up to a very high rate, you will be paying a lot of interest before you get it paid off. Always check for this before signing anything.

If your credit score has slipped quite a bit, it can be tricky to find a lower interest rate on a credit card. It seems a debt consolidation is the perfect solution, but since you’re credit score isn’t as good; it could be hard to find a lender to help you get it done. At times it may feel like an impossible dream.

In the past it definitely was virtually impossible to get the better rates unless you had very good credit scores. A look around the loan marketplace today shows that there are lenders out there for nearly everyone. Even people with lower credit scores should be able to find a bad credit debt consolidation loan. With the economy the way it is, there are many lenders who are willing to work with someone with less than perfect credit.

A final ‘secret weapon’ that many people overlook when dealing with a bad credit debt consolidation is their vehicle. If you have a newer model low mileage car that is paid off or mostly paid off, you may be able to use it as collateral for the loan. The interest rate on that type of loan is usually always lower than the rates you are paying on the credit cards. In some cases it is half of what the credit card rates are. So you see, having bad credit may not bar you from being able to consolidate your debt.


Street Talk

It is so sad our society has created this get it now and pay for it later attitude. We really are paying for it later. good article Lacey

Reply
  about 1 decade ago

We are paying for it not only once but several times over! Thanks for the read Shawn!

Reply
  about 1 decade ago

Had not realized people could get a bad credit debt consolidation loan! Good information. Great article - hope you'll be able to say here's how to consolidate your debt to people with this article!! (and hey! put some together into an eMP3 for your prospects and clients so they can read these and listen too).

Reply
  about 1 decade ago

Hey Cynthia that is a great idea! Thanks!!

Reply
  about 1 decade ago
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