Should I get a bank loan to consolidate my debts. If I have bad credit, who is the best company to get a loan from?
the smarter option is systematically pay down your loans rather than looking for other credit options bad credit means your choices will narrow so its unlikely youll improve your situation with better interest rates or terms if youre having trouble at present meeting your obligations contact your creditors and negotiate a workable solution
How can I consolidate my debts when I have bad credit?
There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online. Bad credit debt consolidation help permits a person with poor credit rating, to obtain bad credit debthelp negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.
I need a loan to consolidate my debt but I have bad credit!?
Getting another loan will not be an option if your credit score is below 650. If you were a bank and someone wanted to borrow $10k because they couldn't pay their existing debts would you give them the money and hope that they used the cash to retire the old debt? You have two options: credit counseling / consolidation or prioritize your debt and eliminate it over time (Dave Ramsey). Credit counseling may help but will appear on your credit report. Prioritize and eliminate the debt - Make a list of all of your financial creditors, how much you owe them and the current interest rate for each. If you owe any creditor less than $500 pay them off as soon as possible. Of the remaining creditors, rank them by the highest interest rate to the lowest. Pay the minimum payment for all creditors, and pay as much of the balance as you can for the highest interest rate creditor. If they don't charge payment fees, pay them within the month when you have money (biweekly or weekly). Every little bit counts so the sooner you get started the sooner you will be debt free. Like most challenges in life there is no quick fix to make the problem go away for a while, you need to pay off the debt.
There is nothing for them to "consolidate."When you "consolidate" debt, that refers to combining multiple accounts so that you can have a single (hopefully lower) total payment. A particular card issuer doesn't care about your other debt -- all it cares about is what you owe it. Now, you might be able to get Wells Fargo to reduce the interest rate on your Wells Fargo VISA card (or whatever), but you'll still have to deal separately with whatever other credit cards or loans you might have.
Can a Bank give me a loan to consolidate my debt?
On principle, I oppose debt consolidation loans. Yes it makes it easier to have one payment, however they want to make money too, and it will cost you something. Too often these debt consolidation companies will rip you off in high fees or just plain rip you off by taking your money and not paying your creditors. $3,000 is not a lot of money. Figure out how much you can pay towards debt every month. Then pay the minimums on everything except the bill that has the highest interest rate. Pay as much as you can to that one every month. Also, you'll want to contact the creditors if they are credit card companies, and tell them you've gotten these other offers for lower interest rates, and you want them to match it. If you aren't actually getting these offers in the mail, go to bankrate.com or cardweb.com and check it out. If the first person you speak to can't help, ask them to kick you up to their supervisor. If that doesn't work, call again another time. Unless you credit sucks you should be able to get a better interest rate, thereby making it easier to pay back. In no time you'll eliminate one debt after another. Keep paying the same amount every month and apply even more to the next highest interest rate debt. Soon, you'll be debt free. Then do yourself a favor and keep saving that same amount you were paying on debt every month. Have it automatically deposited into a savings account through your payroll dept or by telling your bank to automatically deduct it on your paydays. The key is making it automatic!
Can I get a loan to consolidate my debt?
640 is a sub-par score and I doubt that any credit union or bank would give you a real debt consolidation loan. - You might consider a debt management plan with the National Foundation of Credit Counseling. They can put you on a plan with just one payment at a lower rate of interest. This does involve closing out your cards though. http://www.nfcc.org - - Stay far away from any debt consolidation program that promises to cut your debt and payments in half. These firms have you deliberately default on your credit cards. A risky move that could get you sued.
How can I get a loan?/ To consolidate debts?
The odds are your school loan is at a very low interest rate so don't even think about consolidating on a higher interest rate loan unless you are planning to file bankruptcy because those school loans cannot be discharged. You are better off making arrangements with those hospital bills to take what you can afford to pay and then honor those agreements as you promise. It makes no sense to get a loan for your situation. Rather than get a loan to pay money you already owe, get a budget and plan together to pay every dime as quickly as possible before taking on any new debt. Keep your need for credit limited to automobile or home and stay away from loans and credit cards for consumer purchases that will only add interest, late fees and over limit fees. Try to brainstorm ways to reduce your existing debts and/or increase your income and get a savings plan started even if you only put away $10 a week that you don't touch.
Sometimes, in life, you might feel it would best to break a problem into little and manageable pieces and then tackle them one by one. Sometimes it would make sense to combine them and solve it once and for all. When it comes to debts and dues, the latter is actually a smart idea. If you are plagued with numerous debts, credit card dues and EMIs and your credit score too is suffering, debt consolidation is the first step to resolve your problems and become debt-free.Debt consolidation and refinancing is not at all bad for your credit. In fact, the credit bureaus look at smart refinancing done by customers favorably. They see this as a sign that you are attempting to pay off your debts and be more responsible about using credit. How do you consolidate debts? By paying them off using a personal loan (availed at a lesser interest rate). Now you just have one personal loan to repay, which can be done in due time. You will be saving thousands with this move. Credit bureaus record all this and assess you positively, which will result in boosting your CIBIL Score.
Taking a debt consolidation loan to settle your credit card dues (which you're not able to pay yourself) is definitely a good idea. The interest rate charged by credit cards on the outstanding balance (the balance from the credit limit consumed by the user but not yet paid) is quite high. The same ranges in between 1% to 1.5% per month, which calculates to approximately 12% to 18% per annum. Needless to say, it is way higher than some of the most expensive credit schemes offered in India. The worst part, you get only one months time to repay the debt.So, summing up, taking a debt consolidation loan to manage your credit card dues is definitely a good idea.By doing so you're able to save a lot of money which would have been wasted otherwise in paying the high-interest rate charged by the credit card agencies towards your dues.Plus, using a debt consolidation loan buys you more time to settle the debt burden you have on yourself. You can pay the loan borrowed from personal loan within the next 5-6 years ( as per the repayment tenor you choose).Hence, go ahead and find a good personal loan for debt consolidation before applying for it.Read here an answer for related query: Arwind Sharma's answer to What is a reasonable interest rate for a debt consolidation loan for someone with a credit score around 680?