- Review different consolidation options.
- A home equity loan will offer the lowest monthly cost, but the highest overall cost.
- Work to improve your credit, if your bad credit is limiting your options.
Where Do I Get Bad Credit Loans to Consolidate My Bills?
If your credit rating has taken a beating, you may be struggling to pay the bills. Low credit scores are often accompanied by abruptly boosted interest rates, which lead to higher expenses. Debt consolidation is a great way to get a handle on your bills, even if you have bad credit. Are you wondering, "Where do I get bad credit loans to consolidate my bills?" Keep reading to find the answer.
Consolidate Credit Cards with Bad Credit
If you have a lot of debt on high interest credit cards, you have three choices to consolidate your bills: a credit card balance transfer, a home equity line of credit or home equity loan or home refinance, or a personal loan. A balance transfer will get you the lowest rate, but only temporarily. A personal loan will have a rate that is lower than your current credit card interest rates for a longer term, but it may still be relatively high if you have a very low credit score. Contact your bank to ask about a personal loan. You may also receive offers in the mail. Carefully research the lender before agreeing to any offer you receive in the mail.
If you own a home, a home refinance or home equity loan is your best option. Because the loan is secured by your home, the interest rate is lower than you would find with a credit card or personal loan. The rate won't be the lowest possible, however, because those are reserved for borrowers with excellent credit. You may also find that the rate is lower if you have more equity in your home because it gives the bank a bigger financial cushion if you default.
Tax deductions are another advantage to home equity loans. Mortgage interest and most interest for home equity loans or lines of credit is tax deductible, which will free up a little extra cash for paying those bills.
Consolidate Student Loans with Bad Credit
If you need to consolidate federal student loans, you're in luck. The interest rates and consolidation rates are regulated by the federal government. You will almost certainly qualify for a reasonable interest rate from any student loan consolidator. Start with your current lender, but contact a few others to see if their terms and discounts vary. Consolidating is more complicated with private loans, but it may still be possible. Contact your current lender for information, then search for lenders online. Ask a few for quotes before accepting an offer.
When it comes to student loans, you should avoid combining them with other debts or paying them off with a home equity loan or cash-out refinance. This is because most federal student loans are forgiven at death or permanent disability and can be deferred while you're alive. You lose these benefits if you swap them for a different kind of debt.
If you have bad credit, consolidating your debt and bills is a great way to improve your credit history. By paying down debt, you also improve your financial future and your ability to qualify for better credit. No matter what your credit is like, you'll be able to find someone who is willing to take a risk on you.
Alamosa, CO | July 29, 2011
August 01, 2011
Brookhaven, NY | July 22, 2011
July 25, 2011
Crystal, NV | July 22, 2011
July 22, 2011
You may be able to get a title loan on your car, given its equity position, but it may not be helpful to do so. One, you put your car at risk if you miss a payment. Two, the interest rate can be so high that it is not beneficial.
If you have high interest rates on your credit cards, look into credit counseling. A credit counseling program will review your budget with you and offer you a debt management plan, if it will help you, that can lower your interest rates.
Riverview, FL | June 27, 2011
June 27, 2011
Fayetteville, IL | April 08, 2011
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Santa Rosa, CA | April 01, 2011
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Baton Rouge, LA | January 11, 2011
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Wichita, KS | December 15, 2010
December 16, 2010
You present a tough set of requirements.
- Because you seek a local lender, you will need to call your local credit unions and banks and apply to each directly.
- Consider a peer-to-peer loan
- Adding debt may not be the answer to your needs. Consider resolving your debt.
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