How To Get Debt Consolidation Loans For Bad Credit Scores

How To Get Debt Consolidation Loans For Bad Credit Scores

You have debts and want to roll all those debts into one payment. This is known as debt consolidation. Debt consolidation can be a great option to getting debt free. The problem is that debt consolidation can make your situation worse. If you have a great credit score, debt consolidation loans are readily available. If you have bad credit, debt consolidation loans can be expensive and difficult to get. Lenders usually charge unreal interest rates and fees.

What Credit Score Do I Need?

In order to get the best interest rates, you need a credit score of 700 or above. Interest rates range from 5.99% to 35.99%. The better your credit score, the lower the interest rate. If your credit score is between 640 and 699, you’ll be charged interest rates at the upper end of that range.

Are Debt Consolidation Loans for Bad Credit Scores Available

If your credit falls below 640, it is very difficult to get a debt consolidation loan with a decent interest rate. Unfortunately, many lenders who lend to people with poor credit scores are predatory. They take advantage of your situation and charge interest levels that will hurt you and your efforts.

Some online companies charge interest rates up to 400%. Payday loan consolidation interest rates often begin at 400%. This means that if you take out $100, you will pay a minimum of $400 to the loan company. There is no way that a predatory loan is going to help you! 

What Are My Debt Consolidation Loan Options with Bad Credit?

There are several options for best debt consolidation loans other than payday lenders and other predatory options.

If you belong to a credit union, you may be able to get a loan with better terms. Credit unions are not bound by the same rules as banks. It’s worth talking to a loan officer about qualifying for a personal loan.

Online lenders range from predatory to honorable. Take the time to investigate several companies and compare rates, terms, and all your options. Certain online lenders like LendingClub, Upstart and Avant have good reputations and may offer the best debt consolidation loans.

Chase Bank offers personal loans for bad credit. Chase calls this a signature loan (a type of unsecured loan).Their interest rates and terms vary based on credit score, amount, and other factors.

The last option is to take out a home equity loan. You must own a home with equity (what you’ve paid toward the loan or if the house has increased in value).

Home equity loans come in several types: the home equity loan or second mortgage; a home equity line of credit; and a cash-out refinance. The HELOC (home equity line of credit) works similarly to a credit card. You can borrow money up to a certain limit and must make monthly payments against the loan. The cash-out refinance is a new mortgage for more than you currently owe. The extra funds are used to pay off debt.

Home equity loans come with lower interest rates, but that is because the loan is secured by your house. If you fail to pay, your home can be foreclosed. 

Are There Any Debt Consolidation Loan Alternatives for Bad Credit?

There are some alternatives to taking out a loan for people with bad credit. One way is to take a look at your budget and cut costs if possible so you can free up money. Track your spending (including cash) for a month and see exactly where you are spending money. Cut what you can and then focus on paying off your debts.

You can also talk to your creditors to see if they will lower interest rates or work with you to lower what you owe. You may also ask to have your due date adjusted. If you have more money after one paycheck, ask to have your due date moved to just after that paycheck. You’ll save on late fees.

Credit counseling works with you to create a debt management plan. They will “consolidate” your debt and you will make one payment a month. Credit counselors will work with creditors to lower interest rates.

If you have an asset like a vehicle or other item of value, you may be able to take out a secured loan, using that asset as collateral. You generally get a lower interest rate, but you can also lose that asset if you default on your payments.

Another option is bankruptcy. Most of your debts could be wiped away with a BK and you might be able to enjoy a fresh start. However, bankruptcy proceedings are expensive, complicated, and may require hiring a lawyer. Your credit is destroyed for up to ten years and there is a huge stigma about declaring bankruptcy.

Tips to Getting a Debt Consolidation Loan for Bad Credit

Besides not taking a loan out with a predatory lender or trying some of the other options listed above, the best option might be knowing how to improve your credit score. Check your scores on Equifax, Transunion, and Experian. Request a credit report form each – you are entitled to one free report per year – and see what you can do to improve your credit score.

Once you know your credit score, you’ll have a better idea of your options. Shop around! Look at several lenders and the other options we’ve listed. Know the interest rate, fees, repayment terms, and read that pesky small print for hidden charges.

Would a Debt Consolidation Loan Actually Help?

The answer to this is up to you and your personal situation. If you take out a debt consolidation loan, pay off your debt, and develop a reasonable budget, yes, the loan can help you. If you pay off the loan and promptly run up more bills, debt consolidation won’t help much.

One Last Option

If you are in a position of financial hardship and need credit card relief for amounts exceeding $10,000, another option is debt settlement. In debt settlement, you negotiate to lower the total amount owed and then pay off the lowered debts. If that sounds complicated, check out Pacific Debt.

We will work with your creditors to negotiate lower payments while you build up a cash reserve. We’ll then pay down each bill or settle each account using our proven system.

There are some drawbacks – you have to stop paying some bills to convince creditors that you have serious financial hardship and desperately need to settle. This will affect your credit score but chances are your score isn’t that great to begin with.

If debt settlement sounds like an option or you have questions, contact one of our debt specialists today. They will explain all your options and even refer you to trusted partners if your needs don’t fit our solution.

Pacific Debt, Inc

If you’d like more information on debt settlement or have more than $10,000 in credit card debt that you can’t pay, contact Pacific Debt, Inc. We may be able to help you become debt free in 2 to 4 years. We have settled over $250 million in debt for our customers since 2002.Pacific Debt, Inc is accredited with the American Fair Credit Council and is an A+ member of the Better Business Bureau. We rate very highly in Top Consumer Reviews, Top Ten Reviews, Consumers Advocate, Consumer Affairs, Trust Pilot, and US News and World Report.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, Wisconsin
* Other states can be connected to one of our trusted partners

For more information, contact one of our debt specialists today. The initial consultation is free, and our debt experts will give you all your options.

Debt Consolidation vs Debt Settlement

Debt Consolidation vs Debt Settlement

The average American carries around a balance of $6,375 in credit card debt alone. That is an increase of 3% from last year.  In 2017, total credit card debt held by Americans reached $1 trillion. If you have a lot of credit card debt and are looking for a quick way out, you are not alone. You’ve probably seen several terms – debt consolidation, debt settlement, and bankruptcy. These can sound similar, and each one has its unique pros and cons. We’ll look at the first two in more depth and then compare the pros and cons to bankruptcy.

What Is Debt Consolidation?

Debt consolidation takes all your debts and rolls then into one. You then take out a loan and pay off the debts. You then pay off that loan through monthly payments. In order to get a loan, you’ll probably have to have some sort of collateral. The goal is to get a reduced interest rate and lower monthly payments. Debt consolidation is best for people who are only making minimum payments.

Since most debt consolidation plans involve loans, you may have additional fees like origination fees or closing costs. Those fees can add quite a bit to your existing debt.

Contact Pacific Debt today for your FREE consultation and Savings Estimate

Debt Consolidation Pros and Cons


  • Reduce the number of bills
  • Lessens chances of falling behind on bills
  • May be able to get lower monthly payments and interest rates


  • No control of spending habits – if you don’t reduce spending you will never eliminate debt
  • Debt is not forgiven or even reduced
  • Can take 3–5 years in a debt consolidation program to eliminate debt

Types of Debt Consolidation

There are several types of debt consolidation. These include a debt management plan (DMP), balance transfer on credit cards, personal loans, or home equity line of credit (HELOC).

A debt management program includes credit counselling and education programs. They can take a long time – up to 5 years – to complete. You will learn the roots of your financial problems and how to manage them.

Balance transfers on credit cards allow you to transfer your existing balances to a lower interest card. This sounds great except that 0% balance cards are hard to get. If your credit score isn’t over 700, you probably won’t get one. In addition, balance transfers come with a transfer fee of 2-3% on the balance and an expiration date of 12 to 18 months on the lower rate. Interest rates can then increase to more than your initial card.

Personal loans can be hard to get if you have a high debt-to-income ratio. You may end up with an origination fee, a prepayment penalty, and may need to have collateral (your car, home, etc.).

HELOCs have low interest rates but your home is the collateral. If you don’t make the payments, you could lose your house. Since it is a loan, you may have to pay application fees and closing costs as well.

Does Debt Consolidation Hurt Your Credit?

Debt consolidation can hurt your credit score and report. Taking out a loan requires a “hard pull”

on your credit report. This will lower your credit score for a bit. It can lower your credit utilization ratio if you open a new credit card and transfer all your balances to it.

What Is Debt Settlement?

In debt settlement, you negotiate with your creditor to lower the amount you owe. If negotiating is not in your skill set, there are companies like Pacific Debt, Inc. that specialize in negotiating with creditors and have an excellent track record in debt negotiation services. The secret to debt settlement is that you have to stop paying your bills in order to make creditors willing to negotiate. This action can come with late fees and creditor phone calls.

Debt Settlement Pros and Cons


  • May be able to pay less than you owe
  • Last resort before bankruptcy
  • One low monthly program payout
  • Faster than Debt Management
  • No credit requirements or collataral


  • Annoying phone calls from creditors
  • Short term impact on credit score and credit report for up to 7 years
  • Possible tax consequences
  • Risk of creditor lawsuit

Does Debt Settlement Hurt Your Credit?

Unfortunately, debt settlement does come with some credit score and credit report damage. Your late payment history may stay on your credit report for up to seven years. You should consider debt settlement for debts that are very delinquent or already in collections or if you are struggling to even pay the minimum. That way the damage is already done to your credit score.

What’s the Difference Between Debt Consolidation and Debt Settlement?

The quick answer is that in debt consolidation, you take out a loan to pay off all other bills, then pay off the loan. In debt settlement, you negotiate with creditors to lower what you owe. When comparing debt consolidation vs debt settlement, take into consideration the effects on your credit score, the fees charged in each case, how long the program will last and how delinquent your debt.


Bankruptcy is a legal action to have your debt erased. Bankruptcy is a last resort. It can stay on your credit report for up to ten years. It is also legally complex and expensive. In debt consolidation vs bankruptcy vs debt settlement, always try debt consolidation or debt settlement first.

About Pacific Debt, Inc

Unlike credit counseling agencies or debt consolidation companies, Pacific Debt’s main objective is to eliminate your debt completely. If you successfully follow our program, you may be debt free in 2 to 4 years. To be eligible for the Pacific Debt settlement program, you must have more than $10,000 in unsecured debt

Pacific Debt, Inc is accredited with the American Fair Credit Counsel and is an A+ member of the Better Business Bureau. We rate very highly in Top Consumer Reviews, Top Ten Reviews, Consumers Advocate, Consumer Affairs, Trust Pilot, and US News and World Report.

For more information, contact one of our debt specialists today. The initial consultation is free and our debt specialists will give you all your options.

Pacific Debt has helped thousands of people reduce their debt. Since 2002we’ve settled over $200 million in debt for our clients. Contact us today to see how we can help.

Financial Anxiety

Financial Anxiety and How to Battle It

Financial Anxiety

Current internet articles, posts, and headlines are filled with descriptions of the financial issues troubling many Americans. Layoffs, tax debt, and bankruptcies can add to the financial stress, and according to the American Psychological Association (APA), it’s taking a huge toll on our health.

While the country continues to recover from the recession, many of us still feel the weight of crushing debt. Unfortunately, prolonged financial stress can negatively affect our physical, mental, and emotional health. The good news is that help is available. Options like relief from tax burdens, debt management programs, and budgeting strategies can provide hope for anyone feeling the pressure of financial stress.

Managing that stress and finding support are essential to a journey towards financial wellness. Here are some tips for battling financial anxiety:

Know Yourself

No matter what you are going through, there is one person that you can always count on — yourself. Money problems aren’t necessarily your fault. However, your attitude will be one of the greatest determining factors for success. When you are surrounded by debt, with no end in sight, you can do two things: you can worry and stress about your problems, or you can embrace the experience as an opportunity for growth and learning.

Think about your financial problems as financial bloggers think about their money problems. They look at their finances as a resource for learning; once they learn what they need to thrive, they turn around and teach others. This learn-then-teach attitude is a healthy way to approach debt and desperation. Your debt is both an obstacle to overcome and an opportunity to become financially savvy.

Look for Support

Dealing with financial issues is stressful. However, perhaps the most difficult part is accepting help (either financial or emotional) from those around you. The APA lists social support as one of the most useful tools in the journey to battle financial anxiety. The APA recommends the following strategies to grow your support network:

  • Cast a wide net. Nurture relationships with all types of people, e.g., co-workers, friends, family, religious leaders.
  • Be proactive. Be confident enough to approach others about your struggles.
  • Take advantage of technology. Use apps, blogs, and other resources available to reach others. Find the best budgeting apps to increase your savings and create a plan to escape your debt.
  • Follow your interests. Use your hobbies to connect with others.
  • Seek out peer support. Blogs are a great way to connect with people in the same situation.

Help Others

Teaching others what you learn can be an important step on your path to financial peace. Consider sharing tips, strategies, and experiences through a blog. You will discover two things when you seek to help others learn how to establish financial goals: support can be found by supporting others, and the fastest way to learn is to teach. And who knows? You may even find another career path offering online financial advice.

Aggressively Seek Financial Freedom

The options for escaping debt are as numerous as the avenues for falling into debt. You should be seeking any and all viable options for relieving your financial burdens. Debt management and debt consolidation are feasible options for those with considerable debt. Budgeting, investing, job-seeking, raise- or bonus-seeking, and side hustles are all good ways to save.

Your journey to financial wellness will likely start out slowly. Yet, if you use the right money-saving methods, then before you know it, you’ll be racing down the road to a brighter financial future.

Debt Settlement – 3 Marketing Tricks to Avoid

Debt settlement can be a stressful process, even before you enroll. Doing the research can add to your anxiety as you visit different sites, read reviews and try and determine who is the best debt settlement company for your needs. If you haven’t done so already, I suggest reading “5 Important Questions to ask Before You Sign Up.” 

As you do your research, it’s important to know that many debt settlement companies use misleading marketing tactics. To help you spot these deceptive tactics, we’ve put together a list of three common marketing tricks used by debt settlement companies.

Trick 1: Being deceptive about the fees. Most reputable companies charge no up front fees these days. In fact Federal law mandates it. If you shop around, most companies charge anywhere between 18-25% of the debt you enroll. However, some companies have recently started quoting these figures on an Annualized basis. So if the fee is 24% of the debt, but the program is 4 years, they quote “approx 6% per year.” Six percent sounds a lot better than 24% right? The fact is it’s misleading and our employees are hearing it more and more when consulting with consumers.

What Does Your Debt Relief Program Cost?

Trick 2: Bait and switch from personal loan to debt settlement. This is one of the most common tactics being used today by debt relief providers. Debt Settlement companies are sending out direct mail pieces offering a consolidation loan that sounds too good to be true. Unfortunately, it is too good to be true. After the consumer calls in to apply for the personal loan, they are told that they don’t qualify. Most consumers won’t qualify. The sales agent then presents the consumer with “good news!” The “good news” is the debt settlement program, which the consumer conveniently does qualify for. Here is an example of what these mail pieces typically look like:

Deceptive Marketing Tactics

Trick 3: All the Client Reviews are from recent enrollments. Many companies, including Pacific Debt, solicit reviews from customers on sites such as TrustPilot, BestCompany and Google. To read reviews about Pacific Debt, you can visit our website here, check out our blog or simply google “Pacific Debt reviews”. Reading actual customer reviews is a great way to hear what others are saying about a company. However, it is important to read several reviews to determine the quality of those reviews. Is the company simply asking for reviews from customers who just signed up or from those who have actually completed the program? Debt settlement is usually a 3-4 year program, so clients who have been enrolled for more than a few days are better suited to give an actual review of the service.

At Pacific Debt, we ask for reviews from new enrollments, active customers as well as recently completed clients. Some of our competitors only ask for reviews from recent enrollments. Recently enrolled customers are more inclined to hand out a 5 star review because they are happy to get help. Reviews from consumers who have experienced settlements and dealt with customer service over the course of many years, should carry more weight than reviews from brand new customers. So be mindful when you scan through the reviews of the debt settlement company you are researching, you should be able to read at least some reviews like these:

Pacific Debt is the Best Debt Relief Company

Review from 3/17/18

Pacific Debt is the Best Debt Relief Company

Review from Google Feb 2018

So as your embark on your quest to find the best debt settlement company, please be mindful of these common misleading marketing tactics. If you’d appreciate a free evaluation of your situation, from a company that has been helping consumers for 16 years, call our team today at the number above. We can help you assess your situation and see if debt settlement is right for you. If not, we can connect you with a Trusted Partner who might be better suited to help. We are also happy to pass along some free advice and point you in the right direction.

Get Budget Help With Budget Apps

What Are The Best Budgeting Apps of 2018?

The Best Budgeting Apps of 2018

Most people believe in the power of budgeting; some people think it’s just an excuse to avoid the real solution. Richard Quinn, a retired VP of Compensation and Benefits with over 50 years of experience in managing pension and 401k plans for a fortune 200 company, offers some profound advice about budgeting. One particular thing he mentioned about budgeting apps will strike a chord with most budgeting experts. According to Quinn, “Nobody needs an app. They don’t even need a budget. They need to do a few simple things: Take their net pay and save 10% or more, throw away all credit cards, buy what you can afford only and spend all you want after fixed expenses. No budget needed.” What Quinn suggests may shock some at first, but it makes sense. Essentially what he is asking is for you to be smart with your money. Stop spending it first and start saving it first.

Yet, there remains a virtue in budgeting apps that might be overlooked in Quinn’s suggestion. What a budgeting app does is it disciplines and trains you to be the type of spender that Quinn envisions. If you have already achieved a high level of self control, you don’t need an app; in that case, as Quinn says, you don’t even need a budget. For the rest of us—those who are still learning to spend wisely and save regularly—we need a bit of help. Here are the best budgeting apps for those who need extra help in 2018.

YNAB (You Need a Budget)

Budgeting apps come in all shapes in sizes. The best one will mostly depend on your personal taste, but for Larry Ludwig, Founder of Investor Junkie, “YNAB is the clear winner.” Ludwig explains that YNAB is his favorite for its simplicity and lack of confusing “bells and whistles” and notes that “for a first time budgeter, it’s important not to intimidate them with a complicated user experience.” The app’s website explains its method in three simple steps: “Get some dollars, prioritize those dollars, and follow the plan.” Those who are in debt are often swamped by numbers and projections of how much they need to spend or save. YNAB is a simple solution to get you back on track or stay on track.


One of the coolest new budgeting apps is called Honeyfi, made for not only helping one person manage finances, but helps two at the same time. Most married couples have a hard time negotiating spending limits, individual allowances, and other finance rules. In the words of Sam Schultz, Co-Founder of Honeyfi, the free app seeks to solve that problem by helping “couples save more money, pay down more debt, and make better decisions.” Featured in HuffPost, MSN, and Entrepreneur, Schultz explains that the app does “spark a lot of communication IRL” and that it also allows “users to decide how much to share with their partner for each account (balances and/or transactions).” If you’re a couple looking to manage not one, but two different budgets, Honeyfi is a great option.


According to Brian Bartold, a licensed insurance professional with VFG Associates in Livonia, MI, the best overall budgeting app is Mint. This app lets you link “everything to the app including your credit cards, bank accounts and any brokerage or IRA accounts you have.” Though it might not have the speciality in helping couples like Honeyfi, Mint allows for more in-depth budgeting. Bartold also explains that Mint “also works with TurboTax and QuickBooks, two very popular programs for managing your taxes and bills.”

Even though Mint isn’t quite as cut and dry as other apps, it does simplify more complicated budgeting issues, like losing a job or going through a divorce, in a very helpful way. This simplification is possible because the app puts all financial processes in one place. Bartold explains this, saying “you may work with an insurance agent, stock broker, someone in your 401(k) department, all while doing stuff you are doing on your own. All those things are not being managed in one specific area. Using an app that combines everything you’re doing can make planning and budgeting simpler.” Mint is a great option for those with more money to budget and more financial issues to maneuver.


The best part of the PocketGuard app is that it lets users link directly to their bank accounts so that all transactions and balances are current. As opposed to many other budgeting apps, PocketGuard is more focused on spending projections than it is past history. Because of this, the app can let you know how much pocket change you have to spend on any given day or even month. The app is a great alternative to Mint or YNAB if those apps aren’t to your liking.

As Richard Quinn pointed out, the best budgeting system available is your own persistence and determination. The purpose of a budgeting app should be to make your savings methods become habitual. Whether it’s Mint, PocketGuard, Honeyfi, YNAB, or some other budgeting app, make sure you are learning self-sufficiency and responsible spending. The most efficient budgeting tool should be your habits.

Meet Christopher – Now Debt Free Thanks to Pacific Debt

Name: Christopher

Age: 35

Location: California

When did you enroll in our debt settlement program and how much debt were you facing? How did carrying all of that debt make you feel?

We enrolled March 2016 in Pacific Debt’s program, with $23,176 in debt. Carrying that much debt made it almost impossible to make ends meet. We could make only minimum payments, and would immediately be checking balances and available credit to see which card we could use next. Purchases were for necessities, not fun or frivolous items. We lived credit card limit to credit card limit.

Christoper, Debt Free, Pacific Debt

Tell us about your journey through the Pacific Debt program? Are there any special team members you would like to recognize?

Our journey through Pacific Debt’s program was worry free and easy. We were contacted immediately whenever something was needed, and we were informed of every step taken along the way. Brian LoBianco was amazing to work with! He took care of our account and our debts in the fastest way possible, never neglecting quality service, and ended up getting us great settlement agreements with our creditors. He was professional at all times, and we could tell that he cared about us and the assistance he provided.

How does it feel to be debt free? What are your financial goals moving forward?

It feels amazing to be debt free! One thing this program allowed us to do is learn how to live without using credit. By not being able to use our cards, and by lightening the load that we carried, we were able to manage our budget in a credit free way, realizing what we really needed, and what we could do without. Our financial goals are to continue to live completely free of revolving debt, not having to worry about paying high interest for what easily could have been the rest of our lives doing what we were doing before.

We know we are not perfect. What suggestions or advice would you offer to help us improve our program? All advice is welcome.

I honestly was completely satisfied. I will say, the first 6 months to 1 year of creditor/collector phone calls was nerve racking. Understanding that things had to get worse before they could get better was key, though it was still a time that worried us. Pacific Debt made sure we understood the process, and what to do with those calls and contacts, and that made all the difference. We knew Pacific Debt was in our corner the whole time.

Your Guide to Debt Consolidation Loans

Many prospective customers call Pacific Debt in hopes of obtaining a debt consolidation loan to pay off their existing credit lines. During our initial consultation with clients, we review the fact that Pacific Debt is not a lender and therefore does not offer consolidation loans. Instead, we offer a program called debt settlement, which is a form of debt relief that does not require taking out a new loan. For more information, feel free to read and learn more about our debt settlement program.

Criteria For Obtaining a Personal Loan

For those of you who are looking for a loan, there are several factors that will determine what your options may be, here are a few of those factors:

  1. What is your credit score? Generally speaking, the higher your score, the better the rate you will be offered and the more loan options you will have. Typically the lowest rates are reserved for consumers with a FICO score of 720 and above. If you don’t know your score, financial websites such as now allow you to track and monitor your score for free.
  2. What is your capacity for repayment? In order to obtain a loan, you are going to be asked about your employment history and level of income. Lenders prefer to see stable income and will analyze your debt-to-income ratio when considering the risk involved with extending you a loan.
  3. Are you willing to use collateral to secure the loan? If you use your home or vehicle as collateral to secure the loan, lenders may offer you a lower interest rate or overlook less than perfect credit. Of course using your home or vehicle as collateral also puts those assets at risk in the event that you default, so you need to be extremely confident in your ability to repay the loan.

Types of Loans Available

Now that you have reviewed some of the major factors that lenders will consider on your quest for a consolidation loan, here are the types of loans that might be available to you:

Pay Day Loans: Designed as a short-term stopgap, payday loans are typically obtained with the understanding that the loan will be repaid on your next payday. These loans are typical $500-$1000 and come with huge interest – often 300% APR or higher. Be careful with these high-interest loans, as they can get you in serious trouble. In fact, regulators such as the CFPB, have serious concerns about payday loans and are taking action to curb abuses in the payday loan industry.

Personal Loans: A better alternative to payday loans are personal loans. Personal Loans can be either secured or unsecured and typically come with a fixed monthly payment and repayment term.

  • Unsecured: Over the past few years unsecured personal loans have become very popular. Traditionally, these loans have been offered by major credit card issuers and carry interest rates of 10-25% typically. Recently, peer-to-peer lenders such as Prosper and Lending Club have sprouted up in the marketplace, giving consumers more options than ever before with regards to consolidating their debts. The downside to most of these loans is that the interest may be just as high as what you are paying on your credit card debt. In fact, a quick review of Lending Club’s website shows that a consumer with poor credit, looking to borrow and repay a loan over 60 months, could face an APR of 35%!
  • Secured: If you use your home or a car to secure a loan, you may be able to snag a lower interest rate on your personal loan. However, the catch is that if you default on your payments, the lender is now entitled to your property and that can put you in a very serious financial predicament. If you are considering a title loan to your vehicle, check the interest rate, as they are often just as bad as payday loans.

Changing Financial Behavior

Once you have obtained a loan and paid off your other debts, it is important to change the behavior that led to accumulating the debt in the first place. At Pacific Debt, we frequently speak to consumers who previously obtained a consolidation loan to pay off their credit cards, but now have a large personal loan and also carry large balances on their credit cards. The bottom line is that unless your financial behavior changes, a personal debt consolidation loan is really just a method of transferring your debt from one creditor to another.

We encourage consumers to do their due diligence and research your options. If you are not comfortable with the loan being offered (remember many personal loans have interest rates over 20%), feel free to give us a call at Pacific Debt. One of our professional and courteous counselors can review with you all of your options and can explain how debt settlement may be an appropriate alternative. The call and consultation are free, and unlike getting a new loan, we actually work to get you out of debt for less than you owe right now – not more.

Debt Consolidation Loans with Bad Credit

Bad Credit Debt Consolidation Loans

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.

Best Debt Consolidation Loans

Best Debt Consolidatin Loans

If there was ever a great economic climate to get the best debt consolidation loans, this is definitely it. Well, sort of…

Currently, we are enjoying some of the lowest interest rates of all time, which is certainly important when looking to consolidate credit card debt at a lower interest rate.

However, if you are currently shopping around for the best debt consolidation loans, you have no doubt discovered a major problem. The banks aren’t lending money for risky unsecured loans to consumers who have high debt and are struggling with their monthly payments.

Sure, if you have great credit, low debt, and plenty of cash you should have no problem getting a great loan, but for the rest of us, the borrowing window has been slammed shut. Great loans are available mainly to people who don’t really need them and not to those among us who desperately do.

The Best Debt Consolidation Loans Available Might Not Actually Be Loans At All

If you find yourself in a situation where you are struggling to keep up on your payments and cannot find any institution that will lend you money at a great interest rate, a debt settlement strategy is certainly an approach that can be explored as an alternative to a debt consolidation loan.

Ultimately, the main purpose of getting a loan is to pay off your debt, and if a low-interest loan is not available, a debt settlement will likely get your debts paid off faster at a much lower overall cost than a loan would anyway.

Rather than simply lowering your interest rate, a professional debt settlement company has the ability to negotiate with your creditors to potentially reduce your principle credit card balances and create a program to have your debts resolved in just a few short years.

As with anything, there are both pros and cons to using a debt settlement approach. However, if your search for the best debt consolidation loans has resulted in nothing but rejection after rejection, you certainly should take a few minutes to explore a debt settlement option.

Whether or not it is the best solution really depends on the financial circumstances of each individual consumer. For a detailed explanation of how a debt settlement strategy works, contact the professionals at Pacific Debt for a Free Debt Reduction Estimate.

Credit Card Debt Consolidation Loans

credit card debt consolidation loans

Credit Card Debt Consolidation Loans?

Most of us are old enough to remember when it was possible to contact a credit card company, explain you just received a balance transfer offer with a low rate from another company, and they would trip over themselves to match it and keep your business.

Those were certainly the good old days when great offers for credit card debt consolidation loans came in the mail almost every week. It was almost to easy to jump from one promotional rate to the next for years on end.

These days, if you try that trick with a creditor they won’t bat an eye and most of the time the interest rate stays right where it is. In fact it even seems like your interest rate is more likely to get raised if you contact your creditor and ask them to help you out by giving you a halfway decent rate.

If you are stuck with interest rates above 20%, struggling to make minimum payments, and your credit is at a point where getting a credit card debt consolidation loan is not a possibility, you do have some options that you can look into.

One option that many consumers are turning to is debt settlement. Even though a debt settlement strategy does not involve getting a loan at a lower interest rate, it can be a very effective way to get out of debt in only a couple of years with a reduced monthly payment.

Debt settlement is not a one size fits all strategy and it does carry some risks, but if you are in a situation where credit card debt consolidation loans are just not available, and bankruptcy is not a good option, then speaking with a qualified debt settlement specialist will show you a potentially quick way out of debt that you might not have thought of.

It is a good idea to research and explore all the different options available to you to ensure that you are following the most effective debt reduction strategy for your situation. To learn about how a debt settlement plan might work for you, contact the professionals at Pacific Debt for a free debt reduction evaluation, and thorough explanation on how debt settlement works.

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