There is debt consolidation help for people with bad credit. You can regain your credit standing by working with one of a number of companies. These companies can help you reduce rates or offer credit advice. With your debts consolidated, you have one easy monthly payment to deal with. Subprime Debt Consolidation Loans Whether you have a home or not, you can find a loan for debt consolidation. Home equity loans will give you the best rates. But personal loans also offer rates much lower than credit card rates. With poor credit, you will need to work with a subprime lender. These lenders work with people with adverse credit and can provide some unique financing packages. Just like with any lender, you will want to compare the APR of several different companies before picking one. Rates and fees vary widely with subprime lenders, so checking can save you real money. Debt Management Companies Reduce Rates Debt management companies can also reduce your rates and give you one monthly payment. They will deal with your creditors - negotiating better terms and paying them. They will also close accounts when needed. Most programs will have you out of short term debt in less than five years. Your monthly payments will remain the same throughout the program. You may also have your credit applications denied for the first year since creditors want to see you establish regular payments. Credit Counseling Offers Third Party Advice Another option for debt consolidation is to get third party advice as to which program is best for your situation. A certified counselor will also go over your account and create a budget with you. They can also help you define your future goals and develop a plan to reach them. Whichever option they suggest, they will also outline the pros and cons. They may also suggest a company to work with. It is still a good idea to get quotes from other debt consolidation companies to be sure you get the best deal. Depending on your credit situation, you can go from bad to good credit in two years. Developing good credit habits will not only save you money now on interest, but also on future debt. |
