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Information on Loan to Get Back on Track - The Bills.com Blog
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Information on Loan to Get Back on Track
Question: I'm medically disabled on a fixed income because of my daughters. My credit isn't all that great they moved out and im stuck with all of this debt. How can I get a loan to back on track?
Answer: Getting a loan depends on your credit score is and income. Being that you are on fixed income with a bad credit, it makes it a difficult proposition foryou to apply for loans. Generally, you have 2 options for your consolidation loan: unsecured and secured (typically a mortgage) loans. It is technically possible to get an unsecured consolidation loan to pay off all of the debts you listed, but if you have no collateral, such as a home, the interest rate would substantially higher.
Most typically, it is the home mortgage rate with your home as collateral that makes consolidation loans advantageous to consumers saddled with credit card debt and other expensive debt. With a secured note such as a mortgag, the lender's risk is lowered significantly, so a consumer friendly interest rate is usually available. If you own a home, I'd recommend applying for a debt consolidation loan here: https://www.bills.com/mortage/refinance/.
With an unsecured note, such as the one your situation would likely require, the lender is taking much more risk, as they have
few ways to recoup their losses in case of default. The result is a higher interest rate, charged because the lender is taking more risk by lending you the money. However, there are unsecured consolidation loans available, depending on your credit score, so I encourage you speak with lenders to find out what they can offer. The Bills.com savings Center is a good place to start.
Alternatively, if you are struggling with your debts, you can apply for debt help with one of our approved debt relief providers by following this link: Debt Relief Savings Quote . Being that you are on fixed income, you might look into debt settlement to take care of your debts. Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around
three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money.
A possible alternative loan resource you may also want to explore is www.Prosper.com, a site which puts private lenders in contact with private borrowers. A private lender may be more willing extend you a loan than a traditional bank.
I hope I’ve helped you Find. Learn. Save.
Bill
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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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