Are you tired of getting angry calls from lenders who want you to pay back their personal loans yesterday?
Do you have trouble keeping track of what bad credit loans you owe and when you need to pay them? Does this cause you to incur late fees or miss payments which only make your money problems worse?
There is a way to get help with this.
A debt consolidation loan for bad credit can help you with these problems, and more.
Read on to find out how.
What Is a Debt Consolidation Loan?
Debt consolidation loans (aka personal loans) are installment loans. This means you pay a fixed monthly payment over a set period of time at a fixed interest rate.
They are also referred to as bad credit loans because loan because they are loans normally taken out by with people with a FICO® Score in the range between 580 and 669).
These loans are also unsecured loans which means when you do not have to put any property upfront that the lender can take from you if you fail to pay according to your loan repayment plan.
Why Get a Debt Consolidation Loan?
Consumer debt in the United States has reached its highest point ever and many people are having trouble repaying their debts.
Debt consolidation loans make paying your debts simpler because you make one payment a month to a lender who then pays all your bills each month, on time.
Once you have signed up for your installment loan, there will be an agreement in place with your creditors and they will stop calling you.
These unsecured loans can also save you money because you won’t be incurring late fees. Plus the interest they charge is less than the interest charged by credit card companies.
Who Can Get a Debt Consolidation Loan for Bad Credit?
In order to get approved for a debt consolidation loan with no credit check, the lenders will require you to:
- meet a minimum credit score (as low as 550 and up to 630)
- take out a loan within a particular dollar amount (a minimum and a maximum amount)
- at a particular interest rate (much lower than payday loans!)
If you meet the minimum credit score, look around for a lender who will work with you to set up a loan with a monthly payment amount you are comfortable with.
Where to Get a Debt Consolidation Loan
Debt consolidation loans are available through various online lenders, banks and online/local credit unions.
No matter where you choose to get your loan, make sure the interest rate they charge is less than you are currently paying on your debts.
Take Steps Today Towards Getting Your Finances Under Control
In order to get from where you are now financially to where you want to be, you have to take a step in the right direction and begin getting your finances under control.
A debt consolidation loan for bad credit may be the best next step for you to take.
The time to start simplifying your financial life is now so you can get back to enjoying the other aspects of your life.