A debt consolidation loan offers you a way to merge all of your outstanding unsecured debts (like credit cards, store cards, overdrafts and personal loans) into a single debt.Rather than juggling several monthly payments to different lenders each month (and remembering the different interest rates), you can make one fixed payment to a single lender.There are two types of loans: Homeowner (also called secured) and personal (also called unsecured).The loan you choose depends on a few things, like how much you need to borrow, whether you own your home and how long you’d like the loan term to last.Getting a Chance to Get Out of Debt It can be extremely difficult to get a loan if you have a lot of debt, especially if you have bad credit.All of us are looking for a few simple ways to get out of the bad credit abyss.However some mortgage refinancing allows you to consolidate your unsecured debts in with your mortgage.
There’s still a way; one of the easiest ways in fact – through debt consolidation loans. A debt consolidation loan allows you to pay all of your debts off and repay at a lower interest rate than what your paying.
The only problem now is, well, you have a poor credit rating.
You must be wondering how you can qualify for debt consolidation loans if you have a bad credit.
For example the interest rate on your credit card may be around the 19% mark where as a debt consolidation loan will be much lower, thus saving you money.
Instead of paying multiple debts, you will only be paying for one.