Consolidating school loans with bad credit
Whether you decide to apply for a debt consolidation loan or an alternative plan, you’ve made a smart choice to get out from under your bills and start on a path to becoming debt-free.UK unsecured personal debt, such as unsecured loans, credit card debt and personal overdrafts, currently stands at a massive 0.7 trillion.
Should someone tackle their money problems with a bad credit unsecured loan or a debt solution, such as a debt management plan, personal bankruptcy or an Individual Voluntary Arrangement? Whilst those with good credit can usually get a debt consolidation loan at 8-9%, this isn’t the case for those with bad credit.
On the other hand, bad credit will limit the amount you can borrow, and you’ll pay back the loan at a higher interest rate than someone with stellar credit.
Creditors generally report information on your payments – both positive and negative – every 30 to 60 days.
While P2P loans have made it easier than ever to get a debt consolidation loan with bad credit, consolidating your debt without a loan may still be a better alternative for you.
A debt consolidation loan can be a great tool for people with bad credit to help them get their finances back on track.