Consolidating debt with a bad credit rating
Your bank or credit union may also be willing to help you consolidate, and there are some online lenders that offer consolidation loans.
(Tip: Triple check to make sure you are dealing with a reputable site if you are shopping for a loan online.
Ideally, that new debt has a lower interest rate that makes payments more manageable or lets borrowers pay off the total more quickly.
Many people try debt consolidation, but not all emerge better off.
The goal is to get to zero with as little hassle and damage to your credit as possible.
That way you can avoid bankruptcy and regain stability.
The option that best suits you will depend on your credit, available cash and other aspects of your financial situation, as well as your personality. What to do if your debt is insurmountable Get ready to tackle your debts Your options for debt consolidation Ask yourself a few questions to see if debt consolidation is really what you need: Am I serious about paying off my debt?
Unfortunately, often debt problems are simply too big to handle using traditional payment methods.Scams abound.) Consolidating credit cards with high balances using an installment loan — a loan with fixed monthly payments — may actually benefit your credit rating, especially if you use the loan to pay off credit cards that are near their limits.At the same time, any new loan can cause a short-term dip to your credit scores — so don’t be surprised if that happens.(fixed) plus an arrangement fee of 4.8%, you will repay £246.91 per month & £8,888.76 in total.Representative Example: The representative rate is 12.2% APR (fixed) so if you borrow £7500 over 5 years at a rate of 9.78% p.a.