Advice on getting a personal Loan to payoff debts - The Bills.com Blog

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Advice on getting a personal Loan to payoff debts

Question: Hi, I would like to maintain a personal loan but i have bad credit... I just need funds to catch up on my past due accounts and need money to for school shopping for my children. Can you help me please? I just want to be given another chance.

Answer: Thank you for your question. To be perfectly honest, you may have trouble finding a lender willing to extendyou an unsecured personal loan at a reasonable interest rate due to your low credit score.

But, you may benefit from a free debt consultation with one of Bill's approved debt help partners: https://www.bills.com/debthelp/debt/

To your specific question, personal loans are risky for lenders due to their lack of security and relatively high default rate; therefore, most lenders charge high interest rates on personal loan products, especially those for people with credit problems. Many consumers find that using an unsecured personal loan to consolidate their debts can actually cost them more than continuing their regular debt payments. Depending on your financial situation, there may be a few alternatives to a traditional personal loan that could assist you in resolving your debts and paying for your children?s school expenses.

Based on the information in your question, it sounds like you do not need to borrow much money. If that is the case, you should first try to borrow the money you need from family or friends. I know that borrowing money from people

close to you can be difficult and embarrassing, but if you can find a friend or family member willing to lend you the money, that would probably be the least expensive option.

If you own a home, a secured home equity loan may is another option to consider. Home equity loans help many consumers by allowing them to repay debts, make home improvements, or use the money for any other purpose they see fit. In your case, a home equity loan could allow you to pay off your outstanding debts and provide you with enough money to pay for your children?s school needs. However, be careful before you borrow money against your home to pay off credit cards and personal loans; you would be 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, home equity loans help many people, so this is an option to consider carefully. To learn more about home equity loans, I

invite you to visit the Bills.com Home Equity Resources page at http://www.bills.com/home-equity-loan/

Another possible alternative loan resource you may 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. If you are unable to find a loan that fits your needs, you may want to look into alternatives for repaying your debt such as debt settlement or credit counseling. Finding assistance with your debts should free up money to spend on other expenses, like your children?s school expenses. Bills.com offers a wealth of information regarding the various debt help options available to consumers?visit http://www.bills.com/debthelp/ for more information. I hope we can help you find a solution to your financial difficulties, and help you Find. Learn. Save.

Best,
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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