Debt Consolidation Loans
The concept of a debt consolidation loan is sound. You consolidate several high-interest debts into a new low-interest loan, and now have a single lower monthly payment with a lower interest rate. At one time, this scenario was possible and many benefited from it. Today, the reality is much different.
In the current lending environment, unless you have great credit and are only needing a $1,000 loan, there are not really any unsecured debt consolidation loans to be found. Those that are available, have very high interest rates and unfavorable terms. If you have significant equity in your home, you may qualify for a home equity line of credit to pay down consumer debt, but beware that these HELOCs come with a variable interest rate that can adjust wildly with market fluctuations. Again, if you are only talking about a few thousand dollars of credit card debt, a consolidation loan could possibly make sense for you.
Debt Consolidation Loans For Bad Credit
One of the most searched phrases on the internet is "debt consolidation loans for people with bad credit". It is interesting because there really is no such thing. The people with bad credit are typically the ones that need to consolidate, but the consolidation loans available require good credit to qualify.
If you are one of these people who are buried in credit card or other consumer debt, and cannot pay it down through your required monthly payments, the last thing you really need is another loan. You need to consider one of the other options presented. Whatever you do, stay away from pay day loans and car title loans. They have extremely high interest rates and the terms simply do not make good sense for consumers.
If you would like a free consultation and debt analysis with a professional debt advisor to go over your options and help you find the best solution, simply complete the quick form on the right side of this page.