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Bad Credit Loan for Debt
Question: I was involved in an automobile accident and needed to place charges on credit cards also personal loans. My credit is bad due to the accident. Are there any lending companies that I could apply for a loan with bad credit. I need a Bad Credit Loan for Debt fast! I realize the interest rate will be high but, the situtaion is taking a toll on myhealth.
Answer: Unexpected events, such as the automobile accident you describe in your question, are one of the most common reasons that Americans find themselves struggling with unmanageable debt.
Luckily, there are several options available to assist you in working your way out of debt. Below, I will discuss several possible solutions to your problem, which may help depending on how old the debts are, your financial situation and how much money you can afford to allocate to your debts on a monthly basis. If you follow the links below, I can put you in contact with a company that may be able to assist you in resolving these debts.
Very quickly, if you want a free debt consultation with one of Bill's approved debt help partners, click here: Debt Relief Savings Quote
If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. Also, even with poor credit, you should be able to find a lender willing to loan you the money you need, as the loan will be secured by your home. However, be careful before you borrow money against your home to pay off credit cards and unsecured loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy,
as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully–the Bills.com Savings Center is a great resource to help you find a lender for this type of loan.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: Mortgage Refinance Quote
Another option to consider is a Consumer Credit Counseling Service, or CCCS. CCCS companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would disribute the funds to your creditors, based on the new payment amounts. There are several drawbacks to CCCS, though. First, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, it may have a negative impact on your ability to obtain a loan, so you may not wish to enter into a DMP if you anticipate any large purchases, such as home or an auto, in the near future. Third, the average DMP takes around five years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan.
You may also want to consider the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate
lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt. There is one major drawback to debt settlement programs, though–they will significantly damage your credit while in the program and for at least a year or two afterwards. However, if you are currently unable to afford to pay your creditors, the hit to your credit may be worth the benefit of ridding yourself of credit card debt.
Finally, bankruptcy is an option that many people find helpful, especially after an unexpected expense, such as your auto accident. Depending on your income and other factors, you may qualify for Chapter 7 bankruptcy, which could allow you to move on with your life without the burden of these debts. If you are considering filing bankruptcy, you should consult with a qualified bankruptcy attorney in your area who can analyze your finances and tell you whether or not bankruptcy is a workable solution for your situation.
Depending on your income and amount of debt, one of the several options I have described above may be able to help you. I encourage you to explore the Bills.com website, http://www.bills.com/debthelp/ to read more about these and other options available to you.
I hope this information helps you Find. Learn. Save.
Good Luck,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by mila on Thursday 28th June 2007 20:17
Please, im looking for a loan with a monthly payment that i can paid off my credit cards and pay day loans. I have been in USA only 3,5 years, I have a bad credit. Are there any lending companies that I can apply for a loan with bad credit. Thank u so much. Mila