What is Debt Consolidation
Credit Card Debt Consolidation
Medical Debt Consolidation
7 Tips About Debt Consolidation
Common Debt Consolidation Mistakes
Debt Consolidation
Risks of Debt Consolidation, Types of Debt Consolidation Loans, Pros & Cons
Balance Transfer or Debt Consolidation?
Debt/Credit Calculators
Discussion Forum
Credit Counseling and You
Non-Profit Credit Counseling
Consequences of Credit Card Default
Effects of Credit Card Default
9 Common Credit Card Mistakes
Eliminate Credit Card Debt in 90 Days
Credit Card Debt
10 Expenses You Can Not Afford If You Have Credit Card Debt
Truth About Credit Card Companies
Should I Tear Apart My $300 Limit Credit Card - The Worst Credit Card Ever?
Disputing Credit Card Debt
401k vs Credit Cards: Where to invest?
Debt Settlement Letters
Sample Letters
Write a Powerful Debt Validation Letter
Reputable Debt Settlement Agreement
Debt Settlement vs. Debt Consolidation
Dangers of Debt Settlement
Avoid Debt Settlement Pitfalls
Debt Relief Tools/Debt Management Programs
Debt Settlement FAQs
Is Debt Settlement Money Taxable?
Reduce Medical Debt
Free Bill Consolidation: Does it exist?
Budgeting to Stay Debt Free
10 Debt Reduction Mistakes
Should I Pay Off my Debt or Save Up for a Down Payment on a House?
Bill Consolidation
Three Secrets to Lowering Your Debt
Tips To Lower Your Bills
Government Debt Help
Debt Help During Recession
Debt Relief During a Recession
What Debt Relief Means
Pay Off $50,000 Debt
Worried About Bills?
Money & Debt Videos
Report Illegal Collection Activity
Managing Medical Bills
Medical Debt & Bankruptcy
The Facts on Debt
Debt Quotations
Drowning In Debt?
Who to pay first?
Managing Debt FAQs
Medical Debt Solution
12 Hot Tips for Eliminating Debt
7 Debt Elimination Mistakes
2 Ways to Achieve Debt Elimination - Debt Snowball Elimination Method
Payday Loan Consolidation
Payday Loan Debt Consolidation
Payday Loan Relief
Default on a Payday Loan?
Payday Loans | Consumer Information
Problems with Payday Loan Stores
Bad Credit Loan Relief
How Payday Loans Work
What is Loan Consolidation?
How to get a $50,000 loan
Get an $80,000 Loan
$100,000 Loan for Debt Repayment
Veteran's Home Loan Refinance Options
Government Loans vs. Private Loans
Finding a Government Loan
Student Loan Consequences
Reputable Debt Consolidation Companies
Debt Consolidation Company Reviews
Reputable Debt Management Companies
List of Debt Companies in USA
Debt Companies By City
How Debt Affects Your Credit
What is shown on my credit report?
Improve Your Credit Score
Correct Credit Report Errors
Can Debt Settlement Ruin Credit?
Can Debt Negotiation Ruin Your Credit?
401k Limits
Safe CD Rates
Financial Planning
Banks versus Credit Unions
AMEX Horror Stories
IRS Tips For Audit
Choosing a Tax Preparer
American's not planning for long term care
Understanding Usury Laws
Unemployed During A Recession
FREE Government Grants
Where does money really come from?
About Us
Contact Us
6 Payday Loan Debts Owe
Borrow a Loan to Pay Off Payday Loan?
My husband was out of his job and Payday Loans were rolling over

Debt Consolidation Facts

1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

Getting a $20,000 Bad Credit Large Loan

Debt can leave you feeling desperate, especially if your credit isn’t spectacular. We’ve put together a list of options for getting a bad-credit loan. 

Weigh Your Options 

Once you’ve decided to get a loan for the purposes of paying down your debt, you then have to figure out which type of loan is best for your individual situation.

Video: Five Ways to Get Out of Debt Faster

Here’s a look at a few different options: 

  • Debt consolidation. A debt consolidation loan combines several short-term unsecured loans such as credit cards and store accounts, rolling them into a single balance. This can often prove the best option for consumers with bad credit and substantial debt, since it not only reduces your monthly payments, but makes managing your debt easier by consolidating everything into one lump sum. According to the Rebuild.org website, you may be able to find the best rate at a credit union rather than a bank. In addition, the site says, it’s smart to shop around to find the best loan for your needs.
  • getting a bad credit loanPersonal loan. Here’s the paradox: Personal loans are far easier to get for people with good credit, but they’re often sought by those whose credit isn’t so spotless. If you’re seeking more than $1,000 and have troubled credit, this may not be the best option for you. In addition, you’ll get hit with fees if you are late on payments or default on the loan, and you may also have to hand over a prepayment penalty if you repay the loan early. Some banks also want collateral for this type of loan.
  • Payday loan. A payday loan is a small, short-term loan written against your paycheck. Payment is typically due within a week or two. Though these loans are made without a credit check, let the borrower beware: the payday-loan industry remains notoriously unregulated despite government attempts to do so, and interest rates run ridiculously high on these loans. If you’re already deep in difficult-to-manage debt, this is not a wise solution to your problems.

Downsides and Difficulties

Since banks are wary of lending to consumers with damaged credit histories, bad-credit loans come at a price. Since the best interest rates go to those with good credit, you can count on higher rates as well as steeper fees.

bad credit loan

You may also find it hard to get a loan these days since banks themselves are troubled. A global recession and credit crisis are making loans difficult to get, even for those with good credit. You’ll need to do your homework to find an institution that is willing to work with your individual needs. 

mortgage loanHere are a few banks that often cater to the subprime loan market: 

You can also find a more extensive list at CreditSources.org, as well as a host of bad-credit resources at LendersMark.org. As with any other financial decision, make sure a bad credit loan is right for you before signing on the dotted line.

Debt Elimination Scheduler