Consolidating loans bad credit

Posted by / 09-Dec-2019 14:57

Debt settlement and payday loans are areas where you must be extremely cautious.

Many lenders simply won’t deal with debt settlement companies and negotiations with those that do often take 2-3 years to settle.

Someone with bad credit would be considered a high risk and thus receive a high interest rate.Debt and bad credit are very close relatives, which should be no surprise since accumulating too much debt is the reason people have bad credit.Unfortunately, the consequences of bad credit – high interest rate charges on credit cards, auto and home loans, even deposits for housing and utilities – are what keep people in debt.Debt consolidation means taking out one loan and using it to pay off all your other unsecured debts.Debt consolidation loans simplify the bill-paying process, but they also should make things more affordable because of lower interest rates and lower monthly payments.

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Or, worse than that, when lenders take one look at your credit history and completely reject your debt consolidation loan.