Debts are not uncommon these days,as a result of rising expenditures and shooting aspirations. Moreover, the impulsive use of credit cards further abets the debt situation. Are you too stuck in spiraling debts and are looking for a reliable solution. Debt consolidation can be a great solution for you here. It’s a form of debt refinancing option where you take one new loan to pay up your existing loans. The solution consolidates or groups your multiple payments into one single payment per month, accompanied by lower interest rates- than the combined interest rate of existing debts.
Debt consolidation can be both secured and unsecured. A secured debt consolidation loan is offered to those who can provide a collateral, such as a home or car. The collateral assures a secured condition for the lender, as they can always grab your asset in case you fail to pay the loan. Unsecured debt consolidation loan is offered without any collateral attachment. As these debt consolidation loans are not exactly secured for the lenders, these debts come with higher interest rates.
Now, the question is where can you get debt consolidation loans? It’s vital to stress here that there are various portals from where you can receive your debt consolidation loan.
The first option for receiving a debt consolidation loan is your bank. However, you should know that banks prefer people with good credit scores. If you have to get a debt consolidation loan from a bank, you must be careful to maintain no less than a 500 credit score. If you are struggling with a bad credit report, a bank is not a suitable option for your debt consolidation loan.
Credit Card Companies
If you are stuck due to multiple credit card debts, the credit cards companies might help you. You can transfer all the existing credit card debts to a new low interest credit card so that you don’t have to bother about multiple accounts and several due dates. There are many credit card companies which assure 0% balance transfer charge for your help. You can keep the existing accounts open as this would boost the debt-to-credit ratio for you.
Payday lenders also offer new loans to consolidate your multiple debts. If you need a short-term loan in a hurry, the payday lenders will be a great solution as they can send you the loan within just 24 hours of application. Another great benefit of payday lenders is that they don’t bother about your credit score and hence, you won’t have to worry if you have poor credit.
Debt Consolidation Companies
There are debt consolidation companies that can help you with debt consolidation loans. They also make sure that you do not get embarrassing phone calls from your collectors. The debt consolidation companies come up with multiple loan options for you to choose from as per your needs and affordability. One of the most important advantages of taking to debt consolidation companies is that they accept debtors with bad credit scores.