If you have some debts to pay off, you know you can always try applying for consolidation loan. However, would it be possible if we have bad credit? Yes, it is possible with consolidation loan. All you need to do is to find the right option to apply for debt consolidation with bad credit. There are many of them actually, but let us suggest you with four of them in this opportunity. Each option for consolidation loan with bad credit has its own pros and cons. So, think your choice through for sure. Let’s see what options we do have in this chance.
Debt Management Plan for Consolidation
The first option of debt consolidation with bad credit we have here is one you can surely find in credit card companies. It might go with other name too, like non counseling. With it, all of your cards will be closed. The company will negotiate to get your interest rate down. Then, the repayment plan will be set up. This debt consolidation with bad credit will have you to pay monthly payment. The company will disperse it to creditors right after it.
Home Equity Loan for Debt Consolidation
Home equity can be built up if you own your own home. This equity can then be used as collateral for your loan. If you are looking for loan with lower rates, consolidating debt with bad credit to this option would make a good choice. Many people use home equity to pay off their debt since it can be converted into cash. Also, home equity line of credit works just like credit card. So, there should be nothing to be confused about. This debt consolidation with bad credit is worth trying without doubt.
Cash Out Refinance for the Consolidation
If there is something similar to home equity loan above, it would be this cash out refinance here. While the previous debt consolidation with bad credit might make you to have two mortgage payments with two lenders, this one here will make you have only one payment to one lender. Don’t you think it is convenient? The lender will refinance the mortgage and give you up to 80% value of the home in cash. This debt consolidation with bad credit has lower credit requirements to offer too.
Balance Transfer for Debt Consolidation
Did you know? There are companies offering 0% initial interest rate for limited period of time. Usually, it ranges from 12 to 24 months. Since credit card debt often comes with high interest rate, we should make good use of this credit debt consolidation option. Transfer your debt to the new card with such offer. If you can manage to pay your debt off within the time limit, this debt consolidation with bad credit pretty much helps you pay the debt for less than without transferring. You can save lots of money this way without doubt.