There at times when we are overwhelmed by debt from different creditors and for people with poor credit, this can be quite challenging. If you are looking to combine your debts, you are looking at paying over 45% in interest. This is difficult especially if you are dealing with multiple debts and are looking for a way to overcome these loans. We connect borrowers to hundreds of lenders in our network who will fund their loan request. Consolidating debts is the easiest way that can help you overcome debt. When you combine all your credit, you will be in a position to find the right solution to your financial challenges. However, before you choose to merge your debt, you should ask yourself tough questions that will help you make sound financial decisions and overcome problems that led you to the debt trap.
Combining your arrears does not mean an end to your financial problems if you cannot come up with a sound plan to clear challenges that led you into debt in the first place. Do not be too quick to rush into something without doing thorough research.
The first step to overcoming arrears is to get counseling. A financial counselor will go over your finances and help you make better choices on how to clear your loans. He will be in a position to work out the best options. When you have the right advice, you can easily consolidate your debt and clear your credit.
Ways To Consolidate Your Debt
While there are many ways that people can use to clear the debt, there are innovative techniques that are effective in getting you out of debt. If you are struggling with your debt and need help fast, look for a consolidation loan. This loan will help you clear all small loans and you will only be left with only one big loan with lower monthly installments that you can afford. Your lender will negotiate on your behalf with your creditors to find a middle ground. For people with poor credit history, you should not be worried because we will connect you to lenders who finance your loan request. These lenders understand the challenges borrowers face and will help you navigate through difficult financial times.
What You Will Get
- You will talk to a specialist who will help you overcome debt cycle
- Free analysis
- A wide array of loan consolidation plans
Criteria For Loan Qualification
Many people with bad credit scores are looking for alternative options to overcome their arrears. Conventional lenders mainly have two criteria – credit score and income.
- Credit score: this is the ability of a borrower to repay debt or the creditworthiness of a borrower. Banks and other lending institutions offer credit facilities but they are tied to conventional loan management systems such as assets or collateral.
- Collateral: using risk-based pricing model, it means that your lender will assess your ability to repay the loan on time. Timely payments are essential for you to better your credit score and you will not have to put any asset on the line. Small loans are associated with high-interest loans and you should be careful when combining them because you will have to take the interest of each loan into consideration.
Benefits Of Consolidating Your Debts
- Easy and cost effective – when you bring your loans together, your lender will negotiate for a better interest rate and you can easily repay the loan on time.
- Save money – when you merge your loans, you will be given low-interest rate, which will save you some money.
- Get out of debt faster – the main reason why many people choose to merge their debt is to find a way of getting out of debt faster.
- Lower interest rate – if you are struggling to repay high-interest loans, combining your loans could be the solution. This is a cost saving option that will help you avoid complications from creditors. You will have only one loan to deal with.
Reasons To Consolidate Your Debts
Take Control Of Your Loans
If you have more than two debts and your creditors demand different repayment amounts at different times of the month, you will find yourself in a difficult position. If this is the case, you should look for a way to combine all your debts and deal with only one credit. Consolidating debts into one is a solution. You can leave all the stress of following up with different creditors to your lender.
Stay On Top Of Your Financial Status
Maintaining a healthy financial status is imperative because it helps you know what you need and the changes you need to make to avoid sinking further into debt. Every lender needs a comprehensive credit reporting, therefore a potential credit provider can deny you loans if you have poor credit history. We will help you access credit facilities that other conventional lenders will not allow you to. Once you combine your cash advance, you can focus on repaying the loan.
Manage Your Credit Reputation
The credit score is a measure of the creditworthiness of a borrower and this is what many conventional lenders use to determine if they will advance credit to you. Merging your cash advance will help you build good credit reputation by clearing all your debts on time. Combining loans allows you to avoid complications. Moreover, you do not run the risk of failing to repay the loan because the interest rate will be lower compared to the smaller debts. You should weigh your financial position and determine what is beneficial to you because this is the only way you can make the right decision. You can use the snowball loan repayment technique where you pay small debts first before moving to large debts.