Being over your head in debt is bad enough, but when you get behind on your payments, too, it becomes a disaster. Your credit score will bottom out if you don't do something quick. Be careful when this happens, because your emotions will attempt to run the show. A bad debt consolidation loan could make the scenario even worse.
There is always the lie that you can't get a consolidation loan with bad credit. There are companies just lying in wait to offer you that enticing solution of having just one monthly payment that you can easily afford. It sounds great to be able to get rid of that multitude of monthly payments you have now, and lump them into one lower monthly payment. Be sure to read the fine print, because they won. 't tell you about the 20 to 22 percent interest rate you'll be charged for being high risk.
It's true that your monthly payments will be considerably lower, because you will only be paying one monthly payment instead of a number of individual payments. The minimum repayment time is ten years, and you can choose to make it even longer. What they don't tell you is that you will end up paying a whole lot more because of the high risk interest rate.
They will even paint a rainbow in the picture by offering to take care of everything. They aren't lying either. They will charge you an extra 10 percent fee that will be hidden in your monthly payments. If you pay $500 per month, $50 will go to the consolidation loan company and only $450 will go to your actual creditors. In the long run this will add a considerable amount to the total you have to repay.
Is it worth paying someone else that amount of money, when you can do something very similar yourself? Call your creditors and work out a plan that will give you a lower interest rate and lengthen your repayment schedule. If no one wants to help, talk with a supervisor. Keep insisting. Once it. 's arranged, pay your highest interest debt first.
Be careful, because these consolidation companies have a bag full of trick tactics. They will promise you that you can rebuild your credit quickly when you only have to make one monthly payment, and you make it on time. The problem comes when they pay your creditors late. Your credit will bottom out.
What is the solution? Attempt to work with your creditors first, and leave a bad debt consolidation loan as the last resort. See if you can come to an agreement with your creditors, and end up saving yourself a considerable amount of money. - 29904
There is always the lie that you can't get a consolidation loan with bad credit. There are companies just lying in wait to offer you that enticing solution of having just one monthly payment that you can easily afford. It sounds great to be able to get rid of that multitude of monthly payments you have now, and lump them into one lower monthly payment. Be sure to read the fine print, because they won. 't tell you about the 20 to 22 percent interest rate you'll be charged for being high risk.
It's true that your monthly payments will be considerably lower, because you will only be paying one monthly payment instead of a number of individual payments. The minimum repayment time is ten years, and you can choose to make it even longer. What they don't tell you is that you will end up paying a whole lot more because of the high risk interest rate.
They will even paint a rainbow in the picture by offering to take care of everything. They aren't lying either. They will charge you an extra 10 percent fee that will be hidden in your monthly payments. If you pay $500 per month, $50 will go to the consolidation loan company and only $450 will go to your actual creditors. In the long run this will add a considerable amount to the total you have to repay.
Is it worth paying someone else that amount of money, when you can do something very similar yourself? Call your creditors and work out a plan that will give you a lower interest rate and lengthen your repayment schedule. If no one wants to help, talk with a supervisor. Keep insisting. Once it. 's arranged, pay your highest interest debt first.
Be careful, because these consolidation companies have a bag full of trick tactics. They will promise you that you can rebuild your credit quickly when you only have to make one monthly payment, and you make it on time. The problem comes when they pay your creditors late. Your credit will bottom out.
What is the solution? Attempt to work with your creditors first, and leave a bad debt consolidation loan as the last resort. See if you can come to an agreement with your creditors, and end up saving yourself a considerable amount of money. - 29904
About the Author:
Will Debt Consolidation be the choice for you money problems? Find ways that you can use Bad Debt Consolidation to help you out. Get out from under the pressure of all those payments now!
No comments:
Post a Comment