The Disappearance Of Bad Credit Consolidation Loans
Even though there still seems to be advertisements for bad credit debt consolidation loans, it seems that they are impossible to get. If they are impossible to get then do they really even exist anymore? Just because the commercials are still airing and there are many websites out there advertising that they can give consolidation loans to people with bad credit, it does mean that it is something that someone can really turn to for some financial assistance.
These loans have largely disappeared as a result of the current economic turmoil; you might have heard of the credit crunch and this is a prime example. Banks and other lenders are simply not able to lend to anyone and everyone as they were doing only a few years ago. The state of the economy is actually largely due to irresponsible lending practices, which means that lenders are especially careful at the moment.
This might have worked out OK for the short term, but a reckoning was inevitable and the fallout has impacted almost everyone. Lenders are now so careful about extending loans that even people with excellent credit are finding their loan applications denied. In this climate, consumers with bad credit are out of luck when it comes to getting a loan, let alone a debt consolidation loan.
So are consumers with bad credit and a lot of debt left with no options? Not at all. Even in this economy, debtors can still pay off their debts - very, very slowly. If you have an especially large amount of debt, it can be nearly impossible to do this, however. Suppose you have unsecured debts (like credit cards) which total more than $10,000. Your best option is to use a debt settlement program. These programs can help people with large debts which they can't afford to pay in any reasonable time frame otherwise.
Debt settlement programs negotiate with creditors to reduce your debt; most creditors would rather get less than the total amount than have you file for bankruptcy and get nothing at all. This can save you a significant amount. You then pay the new negotiated on amount and your debts are marked as paid on your credit report.
This means lower monthly payments without the exorbitant interest rates often charged by credit card issuers. Instead there are monthly payments which are calculated to fit into your budget so you can pay your debts while you repair your credit rating at the same time.
The only problem is finding a debt settlement program which you can trust to help you. There are a lot of different debt settlement programs out there, so look into each to find out what their former customers have to say about them and whether they've run afoul of the law or been sued by former clients.
After doing your due diligence, you'll know who to turn to when you need help. You'll be able to finally pay off your debts and get back into good financial standing.
These loans have largely disappeared as a result of the current economic turmoil; you might have heard of the credit crunch and this is a prime example. Banks and other lenders are simply not able to lend to anyone and everyone as they were doing only a few years ago. The state of the economy is actually largely due to irresponsible lending practices, which means that lenders are especially careful at the moment.
This might have worked out OK for the short term, but a reckoning was inevitable and the fallout has impacted almost everyone. Lenders are now so careful about extending loans that even people with excellent credit are finding their loan applications denied. In this climate, consumers with bad credit are out of luck when it comes to getting a loan, let alone a debt consolidation loan.
So are consumers with bad credit and a lot of debt left with no options? Not at all. Even in this economy, debtors can still pay off their debts - very, very slowly. If you have an especially large amount of debt, it can be nearly impossible to do this, however. Suppose you have unsecured debts (like credit cards) which total more than $10,000. Your best option is to use a debt settlement program. These programs can help people with large debts which they can't afford to pay in any reasonable time frame otherwise.
Debt settlement programs negotiate with creditors to reduce your debt; most creditors would rather get less than the total amount than have you file for bankruptcy and get nothing at all. This can save you a significant amount. You then pay the new negotiated on amount and your debts are marked as paid on your credit report.
This means lower monthly payments without the exorbitant interest rates often charged by credit card issuers. Instead there are monthly payments which are calculated to fit into your budget so you can pay your debts while you repair your credit rating at the same time.
The only problem is finding a debt settlement program which you can trust to help you. There are a lot of different debt settlement programs out there, so look into each to find out what their former customers have to say about them and whether they've run afoul of the law or been sued by former clients.
After doing your due diligence, you'll know who to turn to when you need help. You'll be able to finally pay off your debts and get back into good financial standing.
About the Author:
This article was written by Daniel R. Michaelson, an author and leading authority on consumer debt consolidation programs. You can learn more about approved debt consolidation.