2016 Debt Consolidation Loans for Bad Credit
The latest applicant is looking for debt consolidation loans for bad credit, although he is really not sure if he actually has a bad credit rating or not. He has one credit card that has a balance of $6500 and he has taken full advantage of this limit. He realizes that he is paying 19.5% interest on this unpaid balance and actually with the monthly payment that the credit card company suggests, it will take him many years to repay this debt and he will pay thousands of dollars in interest payments.
He has the right idea about looking for a debt consolidation loan. Although he only has one debt to be concerned about, he will save a great deal of money if he is able to obtain a new loan at a much lower interest rate with a defined repayment plan. For example if he were approved for a loan at 10% interest over 5 years, he wouls save over $1600 in interest alone. Payments would not be much different $159 vs $134.
If he were approved for a 5% loan, his total interest charged over the 5 year period would be down around $800, providing a huge savings for this consumer. The interest rate he will be offered on a personal loan of this type when he is using it for debt consolidation will depend on his credit rating. This is why credit ratings are so important. Someone with a bad credit rating is deemed to be a higher risk borrower and will be charged a higher interest rate, whereas good credit customers will enjoy the best interest rates and save thousands of dollars.
Consumers pretty much get the idea that they have a bad credit rating when they receive calls from debt collection agencies, use cash advances from one card to pay another, missing loan payments, paying a fraction of your bill at a time, falling behind on your rent, mortgage or utilities and making excuses about why your finances always seem to be a problem or they are late with payments.
This consumer does not appear to have these problems yet and in fact may have a better credit rating than he thought. Since we cannot share personal information, we cannot disclose his actual rating.
Never the less he may be approved for a debt consolidation loan at a competitive interest rate and save thousands of dollars.
If you have a bad credit rating and want to do something about it, start by making a list of the financial issues you have, the debt that you owe and then identify those that can immediately be dealt with.
The number one rule is always pay your monthly payments on time. Seek financial advice and asses if a debt consolidation loan can help you by actually reducing the total amount you must pay each month with lower interest rates.
Sometimes a consignor will be needed to sign for your debt consolidation loan. While it is helpful in getting the loan approved, both parties need to understand that if you fail to meet your monthly payments, the consignor will be required to step up and pay the payments on your loan.
Both parties need to be aware of this fact and the consignor must understand and be willing to accept the risk!
DEFAULT LOAN APPLICATION FOR BORROWER’S INFORMATION
Home/Mortgage Loan Amount :: $6500
Home Loan Application and Processing Speed (when do you need the funds):: I have two weeks until the next payment is due, so I would like to find a debt consolidation loan by then
Do you currently have a mortgage? ::no, currently rent
Bank Name and Branch :: Chase Bank, N Mountain Ave
What City/Town, State and County do you live in? :: Ontario, California
Zip :: 91762
What is your employment field? :: Construction
Employment Position :: Laborer
When are you paid? (monthly/weekly/biweekly):: Bi Weekly
Your credit rating to be – excellent, fair, or bad? :: bad credit , I guess, not sure
How did you find us? :: Looking for debt consolidation loans online
How are you paid? (direct deposit/paper check):: Direct deposit
Gross Amount Per Paycheck :: $1200
Do you agree to have this information published online, without your PRIVATE information of course? :: sure no problem, maybe my situation can help other people in the same situation.
Extra information here please (some detail)::I do not really need to consolidate a bunch of loans. Instead I would like to apply for a debt consolidation loan and pay off the balance on the single credit card that I have. It has a balance of $6500 on it and the interest rate on the unpaid balance is 19.5%, which is very high and generates a large interest charge each month.
If I could find a lender willing to provide me with a debt consolidation loan for the $6500 at a lower interest rate, I could repay this loan more quickly with the money that I would be saving in interest charges.
Note to Lender ::
I am really not sure if I have a bad credit rating or not. I have one credit card, a car loan and I rent an apartment. I missed payment on a couple utility payments simply because I forgot about them. They reported me to a credit collection agency and I quickly paid the outstanding balance, but that probably means that I now have a bad credit rating due to the reports they made. My stupidity, but I sure have learned my lesson.
I really want to make sure that not only do I not miss any more payments, I also want to make sure that I am not carrying any high interest credit card debt which I understand is not considered very good from a credit rating perspective.
I work on construction projects and make $1200 every two weeks. I am a general laborer so the pay is not great, however I am taking training courses so I can move up to heavy equipment operation soon. This will give me a big raise and make more job opportunities available to me.
In the mean time, can you help find a debt consolidation loan for this relatively small amount. The interest I save will be applied to the loan payments each month so I can pay it off more quickly.