Payday Loans Online Direct Lenders Only Bad Credit Debt Consolidation Loans
Many people looking for a debt consolidation loan often have a bad credit rating. In makes sense as that if you have various sources of debt you struggle to manage there are probably a lot of overdue and missed payments bringing your credit score down. But having said that there are a few options available for people with bad credit to consolidate their debt.
If you have a home small payday loans no credit check most lenders will happily consolidate your debts into the home loan even if you have bad credit. If you have any equity in the property then the chances of successfully consolidating your debts is even higher. If you do successfully consolidate your debts into your home loan your monthly repayments will be significantly lower but you will pay more in interest for those debts.
Similar to a home loan people with bad credit ratings can obtain a consolidation direct payday loan online by using some assets as security. Obviously there is the house as mentioned above but you could also use cars, boats, stocks, your 401k or anything else of value as collateral for the loan. While people with bad credit may in extremely rare circumstances get a debt consolidation loan the interest will be significantly higher than a secured loan because of the risk the bank takes.
Another option is trying to improve your credit score. There are many ebooks and articles available online with specific tips on the subject so I will not go into too much detail. If you have missed a few payments or fallen behind it is quite common to be able to have these removed from your credit history if you make an effort to the organization to repay your debt. Improving your credit score will improve your chances of consolidating your debt into a single loan.
Whilst this will not help you get a loan in any way, bankruptcy remains an option for those of you who are unable to consolidate and pay your debts. It is important to understand all the options available so be aware that bankruptcy is a viable option for consumers who are unable to repay there debt. However filing for bankruptcy is devastating on your credit score and you are unlikely to be able to get any loan or credit for several years afterward.
Because you have a bad credit rating does not mean you can not consolidate your debts into a single loan and improve your financial situation and credit rating. Please contact a professional before you make any large scale financial decisions and hopefully you can move forward and become debt free with a consolidation loan.
Adam Diver is a financial expert with over 20 years experience in the financial industry. He endeavors to make financial matters simple to understand for everyone. He currently runs the financial blog http://www.bigpayday loans bad credit direct lendersguide.com.
For more helpful information about Debt Consolidation and other financial topics please visit his site the Big Loan Guide.