Why Can't I Find A Consolidation Loan For Bad Credit?
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Even though there still seems to be advertisements for bad credit debt consolidation loans, it seems that they are impossible to get. If they are impossible to get then do they really even exist anymore? Just because the commercials are still airing and there are many websites out there advertising that they can give consolidation loans to people with bad credit, it does mean that it is something that someone can really turn to for some financial assistance.
The global economic downturn has made it a lot harder to get loans of any sort - the disappearance of these once ubiquitous consolidation loans is one of the results of the downturn. Lenders are just not as open about who they lend to and why anymore. The mess we find ourselves in now is partially due to extending loans to people with weak credit histories and low or no verifiable income.
Lending to people with poor credit and no verifiable income went fine - for a while and the inevitable crash it caused has affected almost everyone. Lenders are keeping a very close watch over the purse strings these days and even consumers with excellent credit scores are occasionally turned down. This means that people with bad credit have little to no chance of getting a loan right now.
However, this does not mean that people who have weak credit ratings have no options open to them, even if they have a lot of outstanding debts. They can pay off their debts the (incredibly) slow way, by paying their monthly payments plus anything else they can afford to. However, this can be next to impossible and in the case of larger debts, could take decades. Someone who has a lot of credit card debt or other unsecured debt is much better off turning to a debt settlement program for assistance. These programs are designed to make it easier for consumers to get out of debt, reduce their costs in many cases and allow them to rebuild their credit at the same time.
The debt settlement programs step in to help you make deals with your creditors. Your debts can be drastically cut down in terms of how much you owe. Once an agreement is made with your creditors, you pay the agreed amount and then the rest of your debt is forgiven. Your creditors will report that you have paid in full as agreed, or something to that affect, to the major credit reporting agencies.
This means that you will no longer have to pay the monthly payments with the high interest rates. It also means that you are finally able to truly begin to work on rebuilding your credit rating.
The challenge is finding a reputable debt settlement program. There are many choices available, so research the different programs to find ones which have a good track record and satisfied customers. Make sure to find out if they've gotten into trouble with the law or seem to be a defendant in civil court often.
Once you've sorted out the good from the bad, you'll know which debt settlement program to contact if your debt gets out of control so you can repay your debts and get your credit rating back onto solid ground.
The global economic downturn has made it a lot harder to get loans of any sort - the disappearance of these once ubiquitous consolidation loans is one of the results of the downturn. Lenders are just not as open about who they lend to and why anymore. The mess we find ourselves in now is partially due to extending loans to people with weak credit histories and low or no verifiable income.
Lending to people with poor credit and no verifiable income went fine - for a while and the inevitable crash it caused has affected almost everyone. Lenders are keeping a very close watch over the purse strings these days and even consumers with excellent credit scores are occasionally turned down. This means that people with bad credit have little to no chance of getting a loan right now.
However, this does not mean that people who have weak credit ratings have no options open to them, even if they have a lot of outstanding debts. They can pay off their debts the (incredibly) slow way, by paying their monthly payments plus anything else they can afford to. However, this can be next to impossible and in the case of larger debts, could take decades. Someone who has a lot of credit card debt or other unsecured debt is much better off turning to a debt settlement program for assistance. These programs are designed to make it easier for consumers to get out of debt, reduce their costs in many cases and allow them to rebuild their credit at the same time.
The debt settlement programs step in to help you make deals with your creditors. Your debts can be drastically cut down in terms of how much you owe. Once an agreement is made with your creditors, you pay the agreed amount and then the rest of your debt is forgiven. Your creditors will report that you have paid in full as agreed, or something to that affect, to the major credit reporting agencies.
This means that you will no longer have to pay the monthly payments with the high interest rates. It also means that you are finally able to truly begin to work on rebuilding your credit rating.
The challenge is finding a reputable debt settlement program. There are many choices available, so research the different programs to find ones which have a good track record and satisfied customers. Make sure to find out if they've gotten into trouble with the law or seem to be a defendant in civil court often.
Once you've sorted out the good from the bad, you'll know which debt settlement program to contact if your debt gets out of control so you can repay your debts and get your credit rating back onto solid ground.
About the Author:
Daniel R. Michaelson is a well known public speaker and author in the area of consumer debt relief and has been helping clients for nearly 20 years. You can learn more about his debt relief program.
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