What Are Your Debt Consolidation Loan Choices if You Have Bad Credit?

What Are Your Debt Consolidation Loan Choices if You Have Bad Credit?

If you are in trouble with too many debts (and struggling with a bad credit score), you want to find a solution to finally pay off all your bills and get back on the right track.

Debt consolidation loans for bad credit scores can be the right option to solve your debt issues.

But where can you ask for such procedure?

Let’s take a look at the possible solutions.


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Banks and Credit Unions

A lot of people ask to their banks or credit unions first, when looking for debt consolidation loans with bad credit profiles. And you will probably get turned down at your first try.

While banks and credit unions may be the perfect solution for traditional mortgages, loans or other products, they don’t normally deal with debt consolidation loans for people with bad credit.

Simply because they don’t like to take high risks.


Payday Loans

While this option can be tempting (also looking at the fancy ads promising cash right away), it is just a temporary solution to your problems of debt.

A payday loan is normally a short-term loan, where you get cash in advance that will be closed with your next paycheck.

If you are looking for a way to fix your debts, you want to look elsewhere.


Debt Consolidation Loans

Lenders operate in a different way than banks or credit unions: they offer debt consolidation loans for people with bad credit (also to the ones with average or better credit scores).

With this procedure, you will receive one loan (in other words, just one monthly payment) that is due to the lender and you can use to pay off all your bills.

The interest will vary depending on your credit score and your ability to pay back the loan.


Debt Relief Companies

Debt relief companies can be another way to get credit for people with bad scores.

You can agree a debt management plan or a debt settlement, depending on the debt relief company and based on your needs and situation.


Whichever solution you are going to choose, remember to always review the company you will work with and their testimonials and reviews.

Also, it’s a smart choice to get a professional advise, who is going to analyze your situation and suggest the best solution for your case.

Author: Erik Emanuelli

Hi! I am Erik Emanuelli : entrepreneur, traveler and blogger. You can follow me on Twitter, add me on Facebook or circle me on Google.

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