While many lenders require you to have a good credit history to take out one of these loans, there are lenders out there who will approve debt consolidation loans for those with bad credit.
Debt consolidation involves bringing separate debt balances together into the one loan.
Adding 5-10 monthly credit card bills can overwhelm your bill-pay. Going on vacation or having a hectic few days can result in several late payments and hundreds of dollars in fees.
Nonprofit credit consolidation companies provide you with the convenience of making one monthly payment to help you become debt free.
They allow people with bad credit and overwhelming debt to consolidate their debts into one easy loan.
This means that instead of paying multiple credit repayments each month, an individual with bad credit can simply pay one monthly repayment, giving them more financial control and a heightened ability to pay back their debts.
Even better, debt consolidation bad credit loans could allow you to secure a lower interest rate than the combined rates of your current debts.
Consider all of the bills that the modern household pays (mortgage/rent, utilities, cell phone, cable, internet, etc.).
Debt consolidation is one way to manage repayments and reduce debt if you have more than one account you're paying interest on.
By moving all your separate balances into the one account you can start reducing your debt by paying one monthly repayment instead of several.
Some people even think that the only debt solution they will qualify for is a consumer proposal that their creditors accept or personal bankruptcy, both of which ruin an individual’s credit for several years.
Fortunately, even those with poor credit have less drastic debt relief options available to them. Debt consolidation is generally advantageous for individuals who owe less than ,000 in consumer debt.