Debt consolidation and bad credit
There are a few options if you have a bad credit score and you need help with a debt consolidation loan:
The trap of credit cards and finance
Getting a new credit card for the first time is exciting. You feel like you’ve had a windfall, and luxury purchases are now within reach. You can feel like you are Keeping up with the Kardashians: spa treatments, designer bags, amazing nights out with friends. Living the dream!
Then another bank may offer you a credit card and that’s exciting again and you find more ways to spend, such as a holiday. After all, you deserve to treat yourself.
You might then upgrade your car. The car dealer talks you into a new car beyond your initial budget, with all the extras and also talks you into “easy finance”. You feel like a celebrity.
But eventually, the day comes when it all catches up with you.
How people end up with bad credit
Everything is fine at first and many individuals manage by paying the minimum payment each month on credit cards and they can scrape the expensive car payments together. People get used to the finer things in life, and don’t want to give it up.
Unfortunately, if someone is spending beyond their means, to maintain a lifestyle that looks fantastic on social media, but on paper, is going backwards, it can be very easy to fall into late payments, defaults and even court judgements. All of which gives leads to a bad credit score.
This is the point at which most people tend to bury their head in the sand and try to keep up with mounting debt, contacts phone calls, demanding letters and emails from creditors, all wanting money that the person just doesn’t have.
Options for bad credit and mounting debt?
Once a person gets a bad credit score, it can be very hard to obtain additional finance. Many financial institutions view individuals as a bad credit risk and so getting credit limit increases, additional credit cards and more finance is impossible. The party comes to a stop and reality kicks in. Payments may become prohibitive and the stress is intense. For many people, there feels like no way out.
Fortunately, there are options and there are financial solutions. For example, listings only stay on your file for 5 years, after which time you can rebuild your credit score in a more sustainable way, only borrowing what you can afford to pay back each month. The other option if you don’t want to wait five years, is to repair your credit history with a specialist. This does cost money, and many people just don’t have that money to spare.
That is where a debt consolidation loan for bad credit can help.
Bad credit debt consolidation loan
The solution that we offer here is debt consolidation loans for people with bad credit. The debt still needs to be paid, but we roll these into one monthly payment, so lingering debts are cleared, which can, in turn, improve a customers credit history down the track. Our customers then have a single monthly payment, manageable on their current income and financial obligations. This often results in lower interest rates that the credit cards and avoids those late fees as well as further defaults and/or negative credit listings.
This solution breaks the downward spiral and gets you back in control of your finances, so you can plan for a brighter future without the stress.