Archives for Posts Tagged ‘Bad Credit Debt Consolidation’
Monday, December 13th, 2010
Debt consolidation counselors are standing by to help you get out of debt by working with your creditors to lower your monthly payments and reduce or eliminate your interest and penalties! Call Now!
How many times have you seen that commercial on television or heard it on the radio while you were sitting in rush hour traffic on the interstate? Bad credit is big business for an ever increasing number of companies across the United States and while they promise you the world, you should know exactly what they can and can not do before signing on the dotted line.
The prevailing majority of bad credit debt consolidation companies are profit making organizations and as such they are “in it for the money“. Here’s a quick rundown of how they operate:
1.The debt consolidation counselor evaluates your existing financial situation including your credit history, existing debt and even your income.
2.When you enter into an agreement with the company, they will begin speaking with your creditors directly on your behalf, explaining who they are and working with them to lower your interest rates and stop penalties for past due balances and late payments.
3.You will send a monthly payment to your debt consolidation company who in turn will pay each of the creditors.
NOTE: You will still receive your monthly credit card statements, and you should always check them carefully to ensure that your debt consolidators are paying them the right amount and that no additional fees are being accrued.
How does the bad credit debt consolidation agency get paid? In most cases a percentage of your monthly payment is taken off the top as the agency’s fee. This fee will vary depending on the company you work with, but it can be as much as ten percent (10%) or more.
Do I Have A Choice?
It is easy to feel helpless and defeated when the bills start to pile up and you just can’t see the light at the end of the proverbial financial tunnel. Even if your situation makes you feel as though using a debt consolidation agency is your only option, let me assure you that you do have a choice, no matter what a salesperson may tell you to the contrary.
There are non profit credit counseling agencies whose sole purpose is to help people who are having money issues. In some ways they work much the same as a for profit debt consolidation company but with a few major differences. A non profit counseling agency will evaluate your overall financial picture and offer suggestions for ways to improve the situation. They will help you to understand how you got in to the position you are in and then assist you with creating a budget that you can live with. In some cases they might suggest ways for you to reduce your monthly expenses. For example, my credit counselor years ago suggested that I purchase a 12 coffee maker instead of spending two or three pounds a day on coffee during the course of a day. She showed me how at that rate I would pay for the coffee maker in the first week, and have an extra 45 at the end of the month. At times they may refer you to resources in your community that may be able to help.
The final decision is yours to make, but be sure to avail yourself of all of the information before you choose.
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Monday, April 26th, 2010
Avail Debt Consolidation Loans To Recover Your Bad Credit Score
Is bad credit score messing up your life? Now solve this problem by combining all your debts into a single debt. Do not think it is an illusion, but it is a reality. Debt consolidation loans are offering you an opportunity to overcome the trouble of bad credit score.
Now the question is how debt consolidation loans will help you to improve your bad credit score. The process is very simple. These loans will consolidate all your existing debts into a single manageable debt that will be easy for you to repay. Thus, it will automatically reduce the interest rate being paid for your existing debts. Therefore, lower monthly payment will be possible and it will help you to maintain a regular payment. And by maintaining this regularity, you can easily recover your credit score. Besides, one more benefit of these loans is that instead of various lenders, you will have to deal with a single lender. It means end of all harassing and untimely calls of lenders.
However, these loans are offered in two forms- secured and unsecured. Collateral is required to avail a secured debt consolidation loan for bad credit borrowers. With these loans, one can avail anything between 5,000 to 75,000. Whereas, the amount offered with unsecured loans ranging from 5,000 to 25,000 and no collateral is required for that.
You need to know about your credit score before applying. Generally, your credit score is the estimate of your financial credit value. The range of credit score or FICO is normally from 300 to 850. And a credit score, whether it is good or bad is decided on the basis of this range. If ones credit score is 580 or below, then his credit score is considered as bad credit score. There are several reasons of poor credit score, like CCJs, Defaults, Bankruptcy, Arrears etc. So, before applying for a bad credit debt consolidation loan, check what your credit score is. There are several credit reporting companies those will help you to get a copy of your credit report.
At the same time, you should keep in your mind that debt consolidation loans are not for all. If your debt is ₤5000or above, then these loans can be beneficial for you. Moreover, consolidating low interest rate loans, like student loans would not be very beneficial.
Debt consolidation loans are a good option for borrowers with bad credit history. But at the same time you should be aware that if you fail to pay the loan amount, then instead of improving, it will affect your credit score adversely. Besides, it will increase your debt burden as well. Therefore, check your financial capacity at first, ensure yourself that you can pay off the loan amount. And after that go for a bad credit debt consolidation loan. At last, it can be said that a thoughtful decision would enable you to recover your bad credit score with debt consolidation loans.
