Unfortunately, debt is a common problem in the United States – and debtors don’t just have one type of repayment that they struggle with. In fact, the majority of these individuals owe money to a number of creditors; and if you’re one of these people, you may already know how hard it can often be to manage all the different dates and payments you need to keep on top of.
Why consolidate your debts?
Are you ready to make a change in your life for the better and get out of the difficult financial situation you’ve found yourself in? Then it’s time to take control of your debts – but to do this, you may need some help.
Fortunately, countless individuals who were struggling to keep up with their payments across the country have been helped to not just manage, but also pay off their debts by taking out a debt consolidation loan.
You may be thinking that another loan is the last thing you need when you’re already having trouble with keeping track of several payments – but often, debt consolidation is different.
The benefits of taking out a debt consolidation loan
In most cases, with the help of one of these kinds of loans, you’ll be able to roll all the payments you’ve been struggling with into one, low interest debt – which can often be great for almost anyone who wants to make their debt more manageable.
Typically, the main draw to this is that keeping on top of your payments will be much easier, seeing as you’ll be reducing your creditors, payments, and different dates down to one – but often, these are not the only things that taking out one of these kinds of loans can do for you.
Debt consolidation can also help you to lower the amount of cash you pay on your debts, too. Instead of having to fork out extra cash for the interest rates of each of your repayments, you’ll generally only need to pay interest on the one loan– and for those with good credit, this rate can often be quite low, too.
Debt consolidation loans and bad credit
If you have a less than perfect credit score, you may not get as much of a reduction on your rates as you would if your credit was better. However, it’s often best to keep in mind that the main goal of debt consolidation isn’t to save money, but to make your payments more manageable and to make it easier to pay off what you owe – even if the lower interest is a nice bonus.
If you’re more concerned about getting a lower interest rate on your debts, credit card refinancing may be a better option for you instead.
What are your options?
Unfortunately, loans and bad credit don’t tend to work well together – but that doesn’t mean that you’re out of luck. Often, all that this means is that you’ve got to take a look at what’s available to you and make the most of what you’ve got. Some of the best options for those with a low credit score who want to consolidate their debts include:
- Visit your local credit union
- Consider online lenders like LendingClub, Avant, and Upstart, which are generally good consolidation loan companies for those with bad credit
- Take the time to improve your credit and apply for a loan once you’ve got a better score
- Shop around for different deals and compare your options to see which lender offers the right type of debt consolidation loan for your needs
While having bad credit can often make things more difficult, you’re still likely to have options available to you.