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Question: Is consolidation of bad credit loan is the complete solution ?Home » bad credit loan
Question : Is consolidation of bad credit loan is the complete solution ?
Is consolidation of bad credit loan is the complete solution ? Or is there any other alternative way ?
- asked by
All Answers:
Answer #1
It depends on the many factor. The loan amount ,outstanding days of debit, percentage of paymentetc.Repairing bad credit can feel like a “Catch22” since you need a loan to repair your credit,but you can’t get a loan because your credit isbad. If if consult any personal debt manger he canhelp you specialize in offering personal loans topeople with credit problems so they can get theircredit back on track. Getting a loan and makingpayments on time makes credit scores go up. Onceyour credit score is back on track, if you applyfor any additional loans in the future then theinterest will be much lower. Whether you choose asecured loan or an unsecured loan, timely paymentsshow you are not a bad credit risk so make surethat you can afford the repayments. Above all iwould like to suggest you to consult any personaldebt manager who can help you best in this matter.Thanks
- answered by Baby
Answer #2
Yeah. Borrowing money to repay other borrowedmoney. Makes perfect sense.
- answered by Common Sense
Answer #3
NO WAY!!! You are going to have to change yourways, unless it was totally beyond your control. You are going to have to change to be totallyresponsible for your bills, even if it meanshaving to work 2 or 3 jobs and slashing spending. You have to get your books back in balance and youhave to spend way less than what you earn to getout of this. You have to stop using credit untilyou can be totally responsible and able to themall off every month so you do not have to paythose high interest charges. Once you get youbills paid off, you need to keep your extra jobsand start saving a big chunk of what you make. When you get to the point where you can save15-25% of your earnings from your primary job youcan quit the others. Be sure to learn and takeadvantage of Roth IRAs and 401Ks/403Bs/whatever isavailable. Tax-advantaged savings and investmentplans help you grow your wealth faster. You needto stop growing your debt. Get out of bad debtsand start growing your wealth and net assets. Nowgo learn and do all this and you will be happywithin a few years, and you sill stay that way ifyou keep it going all your working years. Goodluck!
- answered by Steve2
Answer #4
Consolidation loans are risky, so they're madeonly on one condition. That you give up thecredit accounts that got you into that problem. Imean, let's face it, you have no collateral togive them, and you've already exhausted theunsecured credit you have available. If you DOhave collateral, then you can get a secured loan,but you're just substituting one loan for a seriesof others.So, you can't pay off the old creditdebt until you get the new loan. And with the olddebt still in your name, you won't get a goodinterest rate. Probably higher than what you'recurrently paying. You can't even stretch outpayments longer to get a little lower payment. Soyou're making one lump payment a month that'salmost as much as the total of the smaller ones,or possibly even more than what you're alreadypaying.
- answered by percival.sweetwater
Answer #5
I notice your question was asked at Yahoo Indiaoriginally. My answer applies to United Stateslaw, which like India's law, is based on EnglishCommon Law. However, there may be some parts of myanswer that do not apply to India residents.Consult with an Indian lawyer for a precise answerto your question.In the US, if you are overwhelmedby debt, you have several options. One is creditcard counselling. I realize you did not mentionthe type of debt you have. The No. 2 consumer debtin this country today is credit card debt. (No. 1is student loans.) With credit card counselling,your accounts are frozen and the credit cardcounselling firm accepts your payments and payseach of the creditors their share of the payment.A credit card counselling plan lasts 5years.Another option is debt settlement. Debtsettlement is also known as debt consolidation. Ina debt settlement plan, the consumer hires a debtsettlement company to negotiate deals on theconsumer's debts. While this negotiation is takingplace, the consumer makes monthly payments into aspecial account. When the debt settlement companyreaches a settlement with a creditor, it asks theconsumer if it can make a withdrawal from thespecial account to settle (zero out) the debt.Settlement amounts vary, but range from 40-60cents on the dollar.Bankruptcy is another option.Consult with a lawyer in your state to learn ifyou qualify for a Chapter 7 bankruptcy or aChapter 13 bankruptcy. In a Chapter 7, allqualifying debt is cancelled when the bankruptcyis concluded. This is called a discharge. In aChapter 13, the debtor pays the qualifyingcreditors a certain amount each month for acertain period of time, usually 5 years. At the 5year point any remaining debt iscancelled.Remember that nothing worthwhile in lifeis free or painless. A "quick and easy" way tofree yourself of consumer debt is probably a scam.The Bills.com Debt Coach can give you a no-cost,no-gimmick, personalized, on-line analysis of yourdebts and your options for resolving your debt:
http://debtcoach.bills.com/I hope this answerhelps you find, learn, and save.BillBills.com
- answered by Bills.com
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