Bad Credit Debt Consolidation

Posted by admin on May 29th, 2009 at 12:00am

Question:
Options for Bad Credit Debt Consolidation?
What are some typical options for debt consolidation if your credit is poor?

Answers:
This depends. If you’re a homeowner, you could refinance to consolidate (in the existing market your rate may be pretty ugly) or apply with HFC, American General or Beneficial to set up personal unsecured debt consolidation (if you do not own a home).

Many if not most bad credit debt consolidation companies are not worth the expenses that they’re going to slap you with. If you can acquire the money to pay such fees, you have the money to put in the regular monthly payments on your credit cards. These companies will suggest to you not to make payments toward the companies for a few months and then they will try to consult with the companies and negotiate for lower rates and payments on your behalf. Essentially, nothing you cannot take care of on your own Credit card companies are not going to consult with you for a payoff until you are many months behind on payments.

A number of people will recommend trying to get a bad credit debt consolidation loan (which you probably won’t qualify for with a bad credit score) or also a home equity loan. On the other hand, if you haven’t addressed the larger problem (debt is usually not the problem, it’s the symptom of a bigger problem) you’ll eventually discover yourself to be right back in the situation you’re in now.

Do not spend more than you earn. Pay in cash for all things you buy.

Under Loans for Bad Credit