For anyone with bad credit, nothing is more frustrating than trying to find a loan. What is even worse, is trying to find one with a decent interest rate. Debt consolidation loans With bad credit with low-interest rates are almost impossible to get these days. Not only do you have to overcome the fact that you have bad credit, but you also have an issue of being strapped by so much debt, you are already struggling to make payments on the loans you have.
Do Debt Consolidation Loans With Bad Credit Exist?
For all practical purposes, the answer is no. Consumers with bad credit and high debt are extremely unlikely to find a lender who will give money to an already struggling consumer. Lenders are not very keen on taking on risky loans and as is most often the case, the only people who can qualify for debt consolidation loans, are the ones with good credit and don’t actually need the loan in the first place.
However, there is good news for consumers unable to find low-interest rate loans to pay off their debts. Since the purpose of the debt consolidation loan was to get rid of high-interest rate debt, there are other options available that can provide for the same or possibly a better outcome.
As a consumer looking for a solution that is better than paying minimum payments at 25% interest for 25 years, you should also look into both a consumer credit counseling program as well as a debt settlement program.
With a credit counseling approach, a company will consolidate your credit card payments into 1 monthly payment and typically bring your average interest rate down to around 8 to 10% depending on your creditors. Then your monthly payment will be set at a level which will usually pay off your debt in full plus the interest over about a 5 year period.
While this is certainly a good solution for some consumers, many have found the monthly payments in this type of program to simply be too high for them to realistically afford.
At Pacific Debt, we offer debt settlement programs to consumers who qualify. With our debt settlement program, we can typically negotiate a reduced principle payoff amount and settle your outstanding debts for less than you currently owe. Pacific Debt was rated one of the best debt settlement companies from Top Ten Reviews.
Some of the obvious advantages to our settlement program over a credit counseling approach is that you could be out of debt in just a few years instead of 5 and potentially settle with your creditors for less money than you owe right now.
Keep in mind that all consumers have unique situations and a debt settlement approach is not the right solution for everyone. If you find yourself in a situation where your high debt has made it impossible for you to get a bad credit debt consolidation loan, and the payments on a credit counseling program will put to much strain on your budget, contact the professionals at Pacific Debt for a debt reduction analysis. The call is free, and in fact, we don’t charge our clients a dime until we can successfully settle their debts with their creditors.