Consolidating debt bad southamericafishdating com
A debt consolidation loan may be a great option for you.But how do you get a debt consolidation loan with bad credit?While a debt consolidation company is a great option to consolidate debt with bad credit. You will just have to call each creditor to close your account, explain your financial situation and negotiate the rate down and set up a monthly repayment plan.If you own your own home and have built up equity you can use that equity as collateral for a loan.If you have low average to bad credit (below 660 credit score) you may still qualify for a debt consolidation loan but the interest rate will be high.Rates can be as high as 30% in some cases defeating the purpose of a debt consolidation loan.You may be able to qualify for a cash-out refinance with bad credit as low as 620.There are several credit cards out there that offer a 0% initial interest rate between 12-24 months.
The company you choose to work with will negotiate your interest rate down and set up a repayment plan. You will pay one fixed monthly payment to the consolidation company that is then dispersed to your creditors, minus their fees.You can transfer the balances of the high interest accounts to the no interest card.This will help you pay off the debts much faster and save a lot of money in interest.Debt consolidation loans for bad credit are either not possible, or come with high interest rates.You should know all of your options before doing anything.