Bad Credit Debt Consolidation – Loans and Credit Cards at Lower Rates Subprime Blogger (blog)
10.12.09
By missing a payment, especially over the last few months, you are going to find that the interest rate on your credit card will drastically increase. With so many Americans struggling to make ends meet financially credit cards at the last thing on their minds. Many of these credit cards are going unpaid and the interest rates are skyrocketing to about 30% or more. If you consolidate all of your credit than you might not have to worry about missing these payments.
By consolidating all of your debt into one lump sum you will no longer have all of those different due dates for your credit card and loan payments. You have one large payment is due on the same date of each month which will help you to avoid those late fees or miss any payments. This can greatly help you in the future as it is likely that you will not see an interest rate increase because of missed payments.
Bad credit debt consolidation also allows you to lower the interest rate on all of your debt combined. There is a good chance that you will have some credit cards or loans that have a lower interest rate than your overall debt but if you add them all up you will find that the interest rate is likely to be lower. This can help you save a grain amount of money in the future by avoiding some of the high interest that could build up.
Source:
You may fill this form to ask for payday loan
Can I get a debt consolidation loan with bad credit?
Aug 04, 2007 by mrbearpro | Posted in Credit
I would like to get a debt consolidation loan for my outstanding debt from closed credit cards, old utility bills, etc
I have student loans, but I would like to consolidate them separatley and not through another loan.
Also, I have an auto loan, would the loan be able to cover that as well?
Please, real answers, and no opinions/judgements.
Thank You.
You probably could however the interest rate may be high. I would start with your own bank as they know you the best. I work as a customer service agent with GMAC where I deal with people asking about refinancing all the time and I refer them to their own bank or credit union. They might be able to work out a deal because you have a "professional/personal" relationship with them.
millenium_ryan | Aug 04, 2007
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
Glen G | Aug 04, 2007
Where can I find a personal debt consolidation loan for people with bad credit?
Jun 27, 2007 by sonija | Posted in Personal Finance
I am in dire need of a debt consolidation loan and I have bad credit. I can make things work with $5000, but I do not know where to start. I have seen people with yahoo addresses claiming they can loan money but they sound fishy as it is not a company email, their emails always seem to be yahoo. Any info will help. I fell on hard times and am now able to pay my monthly bills but I cant seem to catch up what I fell behind on. PLEASE help asap. I have a 5yr old and I do not want him to suffer us loosing our home or car.
Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it.
In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.html
Gary H | Jun 28, 2007
Have you tried your banks in your area?
sweet | Jun 27, 2007
Call the American Consumer Counseling Center - unlike a lot of those "debt solution" places, this is a non-profit and won't take your money. They can give you some great counseling and advise you on the best options for your particular situation.
American Consumer Counseling Center
http://www.consumercredit.com/ or 1-800-769-3571
teresathegreat | Jun 27, 2007
If you have at least a 520 credit score, you might be able to get a loan at the following website. It is legitimate since I've been using it for quite some time.
zcommodore | Jun 27, 2007
What Do I need to Qualify for Debt Consolidation Loan?
Nov 01, 2008 by Ivan S | Posted in Personal Finance
Not credit counseling, but debt consolidation loan. Can't find any good info on the web, so your educated opinion would be helpful. What are credit requirements, home equity requirement, debt service ratio and other factors?
If you know a good resource that would be very helpful as well!!
Thanks.
I get this question all the time as a senior loan officer for a large mortgage brokerage firm. Credit requirements are a little tighter now, but there are still lender who will offer to consolidate your debt if you have the following:
1. Credit score of 680 or higher.
2. Debt to income ratio of 45% or lower (if CR score is higher, then ratio can be higher)
3. Home loan to value can be as high as 95%
for more information go to my website: www.windsorcap.com/rlicon
DiscountStoreGenie.com | Nov 01, 2008
Can I get a debt consolidation loan as a home loan but with no equity?
Nov 12, 2006 by Cassidy S | Posted in Personal Finance
I am trying to consolidate my credit card debt because the payments are too high each month. If I could get a home loan this would be perfect. I am having difficulty making all the payments and I don't want to completely ruin my credit. Any reliable consolidation advice would be apprecitated!
No
What are you doing to reduce your spending habits and increase your income?
Most people who consolidate their debt go right back to their spending habits and end up running their credit cards up again.
If you are financially irresponsible the best thing you can do for yourself is to cut up your credit cards and get a second or third job and pay the cards off.
You got yourself in this mess, you are going to have to work hard to get yourself out. Most people want an easy solution but there aren't any.
Phil O' Brien | Nov 12, 2006
well, I don't promise anything but
people in debt often seem to find some help here :
http://credit-cards.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
and here http://finance.ebookorama.com
good luck!
ken_voss12345 | Nov 12, 2006
Hey, I used Prosper.com and it worked out great for me. Prosper loans aren't funded by banks, they're funded by people like you and me! I consolidated all my credit cards and reduced my interest rates by half. If you're interested you can join my Prosper group.
Anyone know any good way to get a decent debt consolidation loan?
Jun 11, 2008 by Brad M | Posted in Credit
I want to get a debt consolidation loan, WITHOUT using my home equity, but they are telling me my credit score is great, but by ratio is too high. Well, I want to consolidate all the CC debt I have, but it's running me in circles. What's the point of trying to get a consolidation loan if they won't lend it to you because you have too much debt? Does anyone know of ANY bank or anywhere I can turn to that understands and can try and help me? Thank you for your help!
Brad;
You say that you don't want to use your home equity as collateral for a loan so I am going to assume that you own a home and have equity in it. If this is the case then perhaps you should consider a home equity loan in order to consolidate your CC debts at a lower interest rate. You will likely be able to further reduce your monthly debt payments by stretching out the term of the loan. In addition, if you live in the U.S. the interest that you pay on that home equity loan might be tax deductible. Find more information on this here... http://www.debt-elimination-guide.com/debt-consolidation-home-loan.html
If you don't have any home equity then your options become limited. Your best bet may be to contact your credit card company(s) and ask for a reduction in the amount of interest you are paying as well as a reduction in the amount that you are paying each month. Most CC companies will work with you on this and you can sometimes achieve results similar to what you were hoping to achieve with a new loan. The credit card companies would rather have less interest and a slower payback period than a total loan write-off. There are also companies that can help you with this if you don't feel comfortable doing it yourself. In fact, some will give you a free debt analysis before you commit to anything.
There are some other options available as well, but it doesn't sound like they would be suitable for you at this time. If you would like a recommendation on a few good companies and information on other options you can find that here... http://www.debt-elimination-guide.com/debt-elimination-options.html
Regards
Bruce
Bruce H | Jun 13, 2008
Try using: http://DebtAnswersNow.com
I used their service a couple months back and they consolidated all my debt and lowered my total debt about 25%.
jwizzo25 | Jun 11, 2008
Use unsecured loans: If the equity in your home is not adequate or you do not own a home, go for an unsecured personal loan. These loans are more difficult to get, but once you are approved, you will benefit from the lower rate of interest with this type of consolidation loan. With the new bankruptcy law, breaking free from debt has become more difficult. Hence avoid getting caught in the debt. If due to any reason, you are in debt, remedy the situation immediately. Though debt consolidation loans charge lower rates of interest than most other types of loans, there is a big difference in rates charged by various lenders. Hence research the lenders thoroughly before applying.
http://debt-trap.com/category/Debt-Consolidation-Basics.html
Wor T | Jun 11, 2008
How can I get a debt consolidation loan? Everybody's turning my husband and I down for too much credit!?
Dec 29, 2007 by Jenn | Posted in Personal Finance
My husband and I are trying to straighten out our finances because we have a lot of debt (credit cards mostly) and we want to buy a house. Everyone tells us that getting a a debt consolidation loan will help because we can combine all of our debts into one monthly payment, but we kept getting turned down or offered a low amount because we have too much credit being used. What's the point of a debt consolidation loan if your too much in debt?
Hi friend getting loan is one of the fighting challenge in our life.Go to different banks if you are denied at one bank.Don't ever rely on the online loan providers sometimes they wil surely scam you.Just take a look at this link to get the free quotes from the experts around the globe..
Guna | Dec 29, 2007
DON'T get a CONsolidation loan. If you are on a WRITTEN budget and are spending LESS than you bring in, you can use what is left to pay your existing debts DIRECTLY. If you are not, renaming the debt won't help you anyway. There IS NO POINT to a CONsolidation loan. It only allows you to PRETEND you did something. Until you pay off the debt, buying a house is not a good plan anyway. You will just find yourself with LESS money AND a mortgage payment.
STEVEN F | Dec 29, 2007
"Debt consolidation loans" are a scam, mostly; they just charge you MORE money to do something you could (& should) do for yourself. Think about it, they exist to make money for the lender, not to help you!
Go to the library and borrow a book by Dave Ramsey. Doesn't matter which one, they are good but are all pretty much the same. Here's the CliffNotes version of what Dave says:
Rank your debts, smallest to largest, and pay minimums on all but the smallest. Throw every last dollar you can find at that smallest debt (deliver pizzas, get an extra job, sell stuff you don't need) until it's gone...then move on to the next debt.
Do you have a car payment? Why? Sell the car, pay off the loan, buy a running vehicle with what's left.
Eat a LOT of beans & rice until you are straight again
Good luck!
Thin Kaboudit | Dec 29, 2007
Would you like the truth, or would you like the same song & dance BS that the con artists and government wants you to believe?
I will choose the truth, get angry at me for being blunt, or realize reality
Here is the Reality check:
If you are being turned down for a debt consolidation loan, you are not going to qualify to buy a home for a long time. Especially without a huge downpayment (20-30%) things have (finally) dramatically changed and banks aren't allowing people with bad credit choices in their past to get zero down loans anymore.
So, even if you consolidate your credit is going to suffer for a while.
If in your shoes, you have one solid plan of action, but it is not a quick fix and it will still be a few years before your dream of home ownership can happen.
1. Both of you take 2nd jobs. If you are charging to survive, you are not making enough money AND are not accomplishing anything month after month.
2. Sit down and make a list of all your debtors, amounts owed and interest rates being charged. Write down the current amount you are paying next to each card/debt.
3. Then take your list and prioritize it highest interest on top to lowest interest on the bottom. Now write in the minimum allowed payments for each.
4. If you have been trying to spread extra money against all the debts you are in good shape as you have the ability without spending any extra money to get these paid off.
5. Put all money from 2nd jobs AND all excess payments above your minimums (that you were spreading between all cards) and put towards the debt at the top of the list.
6. Do this every month and you will be amazed how quicly you pay it off and it is amazing how much quicker your total debt will shrink.
7. This is the most important thing. When you pay your first debt off, take the entire payment (minimum plus excess you paid) and roll down to the next card. Then on that debt you would be paying minimum + the minimum/excess so the debt payoff will begin to snowball.
Once all debt is paid, take the money you were using to pay debt and save it for your down payment.
Reality isn't easy and going into debt to get out of debt never works.
Good luck
Gem | Dec 29, 2007
You simply need to get on a written budget. You need to cut up the cards and start paying down these balances. You should be debt free whan you buy a house, or you will struggle and find constant financial probs.
Get on a written budget. Sell things you don't need. Stop going out to eat. Take second jobs, third jobs. Pay the smallest balance off, first, work your way through to the highest balance. Sell your car.
Live within your harvest
Billie ACH | Dec 29, 2007
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
George C | Dec 29, 2007
I've reported the 3 scam responses. If someone else would report them, they'd be removed from this post.
NEVER respond to online loan "officers" with free email accounts. They will approve your "loan" but will request that you send them money for fees, taxes and insurance. The only real money will be yours.
v b | Dec 29, 2007
Most debt consolidations loans are for homeowners to do a home equity loan.
You are in no position to buy a house right now. You need to focus on paying off that credit card debt and increasing your credit scores.
1) Make a budget
2) Research using the snowball method of paying off credit card debts
3) Pick up the Dave Ramsey book very inspiration and will help you get your act together
4) Get second jobs or work overtime to make progress.
5) Stop using credit cards
Teri | Dec 29, 2007
Trying to get help with debt by a debt consolidation loan but I can't get approved?
Oct 03, 2007 by carol | Posted in Personal Finance
Trying to get help with debt by a debt consolidation loan but I can't approved. I'm behind on payments so I just keep sliding deeper into debt with late fees and I'm trying to pay it but can't get the help I need. help!
Home equity is a bad idea. If you put all that money on your house and something happens and you cant make the housepayment then they will come and take your home.
There is no easy way out. A written budget would be the first thing you do. Cut back on the things you dont need until you get the debt payed. take a second job for a while.
you could try daveramsey.com and listen to his radio show. he has lots of good advice on money and debt.
i wouldnt go with any company to handle it. They dont do anything that you cant do yourself. What they do is not pay your creditors for months and then try and settle for less. Something you can do yourself if that the route you need to go.
Just remember that if you go with some company to pay your debt and they dont pay then You, and you only are responsible for the debt. Your creditors will sue you and not the company you hire.
heybulldog | Oct 04, 2007
If you have a home, use the equity to refi and consolidate the debt.
marxistharpist | Oct 03, 2007
I would contact a debt or credit counselor in your area they will help you.
zwl88796 | Oct 03, 2007
A debt counsellor should be abel to help you have interest suspended whilst you find your feet and to negotiate lower payments over a longer period.
That is the better option than a straight consolidation loan as it sounds like you aren't good with money or figures so you may end up worse off with one of those - they aren't really your friend you know. You are their victim however it gets dressed up.
Rupert W | Oct 03, 2007
www.creditinfocenter.com
Beware very aware of Consolidation Companies,
they are NOT supposed to charge you up front
Ask M | Oct 03, 2007
If you have a home, you could check into a Home Equit y loan that may be suitable for your needs. I would also trying the debt collection companies and see if they can help, just make sure you do your research no matter what your decision may be. There's a lot of scams praying on people that need a quick fix.
nmr1022 | Oct 03, 2007
Do you have to own a home in order to take out a debt consolidation loan?
May 09, 2006 by MartinVLee3 | Posted in Personal Finance
I would like to consolidate my debt and have seen information on debt consolidation loans. I do not own a home but am interested in consolidating my debt. What options do I have?
Don't know what planet lika is from, but you do not need to own a home to get a consolidation loan. She's confusing it with a home equity loan.
You can go to a bank or credit union and get a consolidation loan just like a personal loan. It may be difficult if you have poor credit, but it's done all the time. I did it, a few friends did it, so ignore Lika's answer.
Pay attention to VaTreasures' answer! One of the biggest mistakes people make is to get a consolidation loan (or transfer balances to other cards) is to not control their credit. Too many times people consolidate, then turn around and run their now-empty cards right back up again. Now you are in twice the amount of debt, and end up filing for bankruptcy.
Many thousands of people were forced into bankruptcy last year for this very reason! Credit Card Transfers and Consolidation loans were being pushed like crazy as a quick and easy way out of debt, but people didn't see the dangers! You MUST quit using credit until you have paid off your loan.
Studly | May 09, 2006
Will closing ym credit cards help me get approved for a debt consolidation loan?
Mar 18, 2008 by Zeke | Posted in Credit
I have tried to get approved for a debt consolidation loan so I could have my credit cards and school loan under one monthly payment rather than juggling several payments but I get denied because I have too much credit in my name right now. If I close all the credit cards will this help me get a loan approved? It would make life so much easier if I just had 1 steady monthly payment.
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
Saniya | Mar 18, 2008
I need help with debt, who will approve a Debt Consolidation Loan?
Dec 13, 2007 by Trophy Wife | Posted in Credit
I'm am not very far in debt but need help getting back on my feet. Everytime I apply for a Debt Consolidation Loan I am denied. Who would approve me? Does anyone know.
I have been told that banks look at Debt Consolidation Loans as a bankruptcy. They feel that you can not handle your debt alone so you are a big risk. Pick one debt to concentrate on to pay it off. The two different methods are to either pick the highest interest debt or the lowest debt amount. Once you paid off that debt then concentrate on the next debt until it is paid off.
John | Dec 13, 2007
Student Loan Debt Consolidation Calculators Will Offer Mental Relief
When you're looking to get out of debt, you're more than likely under a lot of pressure. It's about this time that many people have the bill collectors breathing down their necks, calling them at dinner and even calling their bosses; it can be very stressful and it can cause even the most sane people to feel like running away from it all. However, all you need in this situation is a little student loan debt help. You can find that help with student loan debt consolidation companies. These companies will bundle your debt into one lump sum and then will offer solutions so that you can get out of debt faster and easier. These companies will usually have student loan debt consolidation calculators on their websites where they will tell you when they will be able to get you out of debt. This can be very freeing mentally as you'll finally be able to see the light at the end of the tunnel.
Follow The Instructions
For these student loan debt consolidation calculators to work, you have to follow the organization's instructions to a T. Sure, the student loan debt consolidation calculators can provide mental catharsis but they're useless if you don't follow the organization's instructions. For example, if the organization tells you to mail off a monthly payment equal to X and you miss a few payments, you're not going to get out of debt anytime soon.
Beware Of Scams
Also, when you see a student loan debt consolidation calculator on a website, make sure you look out for scams. Try to gauge the professionalism of the company, navigate the site to see if they are legit and do an internet search on that company to see if anyone else calls it a scam. You can follow any debt consolidation calculator on the internet as they are merely tools to show you how they will get you out of debt but never actually send anyone any money until you're absolutely sure they are a legitimate company who actually wants to help you.
TW), all dropped by their daily 7 percent limit on Tuesday as investors worried that the new loan will just put off much needed consolidation. Continued
Best SyndicationDebt Consolidation Loans: Loans to Free you from Debts Then debt consolidation loans are the loans you should be searching for. This finance will have answers to all your queries. With the help of debt Debt management solution: Remove all your debts
PhillyDeals: Stimulus has billions for health technology One likely result is the consolidation of a lot of small practices into larger or hospital-run groups. "Hospitals have been much more supportive than many
Watch Out For The Pitfalls of Debt Consolidation Loans The real answer depends on how you plan to handle the debt consolidation loan. As far as paying less interest overall, that may not be entirely true,
Best SyndicationDebt Consolidation Loans: Loans to Free you from Debts Then debt consolidation loans are the loans you should be searching for. This finance will have answers to all your queries. With the help of debt Debt management solution: Remove all your debts
