Bad Credit Debt Consolidation

   
   
   

Is your credit rating in the toilet? Are you afraid to answer the phone because bill collectors and credit card companies are after you? Are you slipping deeper and deeper in debt each month?

Bad credit debt consolidation may be the answer for you. You can lower your monthly payments and get yourself some breathing room if you consolidate your debt into one smaller monthly payment. That said, it may not be easy. You will have to take action to make it happen and it can be difficult when you're running yourself ragged to take the extra steps necessary to make it happen.

On the other hand, debt consolidation, even with bad credit, can give you the freedom you need from the bill collectors and the time you need to free yourself from debt.

The first thing you need to do is take a look at your situation and see if there are any credit cards that you've kept current and have a reasonable interest rate. When I say reasonable, I'm thinking under 10%. If one or more of your cards is at 30%, or more, and you have a credit card you're in good standing with that has a rate of 15%, but not one at 10% that the best you can do. Call the credit card company with the lower rate and see if they will give you a credit line increase to pay off the high interest card. In some cases, if you're very lucky, they may even have a low interest grace period on balance transfers. Even if you don't get all your high interest cards transferred, even getting the one off your back may be enough to get you going and give you some breathing room.

If that doesn't work, your next step in your debt consolidation with bad credit leads you to look into one of the non-profit credit counseling services. Being a non-profit doesn't mean they don't charge a fee for their services to cover their expenses. They work with your creditors to reduce the interest rates and monthly payments so you can pay them off over a period of time. The work with you to develop a very strict monthly budget so you get your cards and other bills paid off. This is not a fast, or necessarily easy way to go, but it will get you debt free!

 

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