Debt Consolidation Loans
When you have a lot of debt that you are responsible for , managing finances becomes more of a chore than anything else, which is why debt consolidation loans have become the norm for a lot of US households. The fact is, debt can easily bankrupt anyone if it is not watched closely. In addition to this, getting bad credit as a result of having too many outstanding balances is a reality for many people. Having a credit score drop as much as 100 points is unfortunately very common nowadays. Once a credit score is reduced, then more problems are created which make it difficult to get debt consolidation loans from local banking institutions and many private lenders. However, all hope is not lost, there are many private lenders that will issue debt consolidation loans for people with bad credit. Many of these private lenders that issue debt consolidation loans do have different requirements and some of them have minimum balances that they will accept. Some are as high as $20,000 and others are as low as $2500. Our recommended company will help those who as little as 2,500.00 in past due debt.
Debt Consolidation Loans Improve One’s Financial Position
Debt consolidation loans will help to improve your positioning financially which will open up space for you to gain more freedom as your debts are paid off month by month. Low interest debt consolidation loans allow an individual or family to refocus their finances which truly helps to relieve emotional stress as well as financial stress that results from bad debt.
Much of today’s debt is a result of outstanding credit card debt. For quite a few families, their financials are held up between three or more creditors. Each of these creditors may have a different APR as well as a different minimum payment due date. When one creditor gets aggressive and demands more money, it can invariably take away money that should be used to pay another creditor. Here, the reality of robbing Peter to pay Paul is an unfortunate situation, but it is not impossible to get out of. Again, this is where debt consolidation loans come in and help to “bail out” a person financially who has gotten behind and does not want to suffer anymore consequences on their credit report.
By using debt consolidation loans to reduce the number of creditors a family owes on a monthly basis, simplicity is now brought to a bad situation. As mentioned, one of the largest problems that individuals and families have when they take on multiple creditors, is that chaos can enter and their lives because each creditor has their own terms. This invariably results in many loans with an extremely high interest rate.
For those whose credit has been compromised due to bad debt with multiple creditors or even one aggressive creditor, making that decision and opting for a bad credit debt consolidation loan starts a wonderful process of finally being relieved from all of the tension a situation encompassed with the bad debt causes. Many find out that high interest that is charged on credit cards keeps a person in a lot of debt. To make matters worse, many credit card companies advertise a zero balance transfer which is sold as a means to “fix” a bad credit situation by moving balances from one particular creditor to the creditor who is issuing the zero balance transfer.
Some of the commons rates that are charged for such transfers is anywhere from 12.99% all the way to an astonishing 21.99%! In addition, banks will usually charge a 3% fee multiplied times the amount that you are transferring. These types of credit transfers from creditor to creditor have often resulted in a financial catastrophe because if one late payment is made then the 0 APR will revert back to normal APR. Matters get even more convoluted for those who have bad credit because many banks will require an individual to have an excellent credit rating before they are able to conduct this type of transfer. This leaves a lot of consumers back to the drawing board, but with debt consolidation loans, the process is far more streamlined and there are no hidden fees.
Debt Consolidation Services and You
As mentioned, many of our readers have owed multiple creditors at one time, and because interest rates will very with each credit card, far too much interest is being paid in the long term. Getting debt consolidation loans will help to reduce this interest and produce a predictable payout of period for debt. As an individual debts increase, the situation becomes even more serious and action should be taken immediately to get free from creditors who have no regard for your present financial state.
Living debt-free is the ultimate goal of debt consolidation loans and making the shift from various creditors to one company that understands your situation has proven to be beneficial for many of our readers. Debt consolidation loans have been time tested and have been the answer many families are looking for when they are trying to lessen their current debt load.
The pressure that is created from having too much credit card debt or too much unsecured revolving debt reduces the quality living for individuals and families. In fact, financial issues been when the main reason for divorce and with the current state of our recession, it attests to the fact that families in United States are experiencing far too much pressure as a result of having too much debt. Again, this is why unsecured Debt consolidation serves as a solution.
Debt Statistics- Why We Are Suffering Too Much in Debt
When you add up the various types of credit cards such as departments for credit cards, gas cards, these charge cards, unsecured credit cards, and other serious obligation such as a house or car payment, the average American has close to 10 or more payments that they must keep up with each month. For many families, a majority these monthly payments are in the form of charge cards. These obligations are affecting students as well as adults. Recent statistics show that individuals as young as 20 years old are now holding at least two or three different charge cards. Many of these students have maxed out their credit lines and are asking for more. Although it is possible while students in college to make their payments on time, once two or three payments are missed, there minimum payment which is usually at 2% can increase.
Over time, this situation just spirals out of control. Instead of paying an exorbitant amount of interest a better option is unsecured debt consolidation loans for bad credit which help to put a bad debt and bad credit situation far from anyone.