Bad Credit Loans and Debt Consolidation Options
Having a bad credit score can prevent you from doing more than just being able to open a credit card or get a loan. Some employers and landlords may also check your credit history to determine whether or not to hire you or rent to you. Your credit history is so important that even when you go to sign up for insurance, the insurance company may check your history to prove your identity.
Many people assume that if they have a bad credit history, their only option is bankruptcy, but that isn’t necessarily true or the best solution. Bad credit debt consolidation loans may help you to restore a bad credit history and therefore your opportunities in life sooner, rather than later.
Why bankruptcy isn’t the answer
While declaring bankruptcy became popular and easy for a while, regulations are in place that reflect what it is meant to be – a last resort. Bankruptcy doesn’t wipe the slate clean and let you start over without any financial impact. It can create a slow and painful impact on your finances and opportunities that can last for many years. The debt may be gone, but the bankruptcy ruling will stay on your credit report and prevent you from rebuilding your rating.
The only way to get credit while under a bankruptcy arrangement is to get it from lenders who prey on those with no other option but to accept their high interest rates.
The best way to rebuild credit rating
The best way to rebuild your credit is to start by cleaning up the amount of debt you owe. When you organize your debt under one account (debt consolidation), all the smaller accounts can be paid off so your finances aren’t spread in all different directions and having to deal with several different companies. The better organized your debt is, the better able you will be to begin to budget more appropriately and make the one payment a month to take care of your debt. Bad credit debt consolidation loans can help you build your credit rating in Australia.
A bonus to the process is the fact that paying off your creditors does get recorded to your credit report, as does your regular payments to the holder of your consolidation loan. You can clean up your debt and begin to rebuild your credit faster than you think by doing it at the same time.
Debt Consolidation Loans Australia – consider the merits of consolidating your loans to a lower cost loan and rebuild your credit rating in Australia.
You can get debt consolidation loans for bad credit. It’s obviously not as easy but it is possible. Talk to us about how we can can help with debt consolidation loans for bad credit.
How long does it take?
There are risks to debt consolidation though and it is best that you get some professional advice before making a final decision. When you call for your free consultation with our debt specialists about your options for debt settlement and consolidation loans, you will also get a better sense of how much time it will take to pay back your debts and begin to see a difference in your credit rating. On the average, it can take some weeks for everything to be put in place and, depending on your income and level of debt, it can take several months or even years for the payments to be made.
If you choose the consolidation loan path, once you get started you are likely to immediately experience less financial strain.
Whichever option is right for you, you should not delay in dealing with your debt.