It is difficult to pay all of those credit card bills, and a credit score drop will likely happen if you forget to make the minimum payment on just one. Are you struggling to make the minimum payment on all of your credit cards? The minimum payment barely covers the interest, and it can take a very long time to pay down your debt. A debt consolidation loan is ideal for those looking to consolidate their bills into one low monthly payment, but it can be difficult if you have bad credit.
Check your credit report:
Go online and check your credit report for any inconsistencies. You have access to a free credit report from the three major credit agencies each year. You can dispute inaccurate information and this often raises your score. A higher credit score means you are better able to find a debt consolidation loan with a lower interest rate.
Look for a lending agency that is willing to work with your bad credit. If you have a solid work history and enough income to pay off the loan, then it is possible to find unsecured debt consolidation loans for bad credit. Ask for a letter of credit from your utility company, and prove to the lender that you have always paid your mortgage and student loans on time. It is easy to miss a payment or two on credit cards, especially when you are juggling lots of cards. A couple of missed or late payments can lead to a big drop in your credit score, but if you can prove you have been responsible with your other bills, then it is possible to get a loan.
For many people who have been in debt that they are not able to get rid of, finding a source that allows them to get unsecured debt consolidation loans for bad credit will allow for quick reduction in the amount of debt that is owed to many creditors. For many people, this means the main difference between being debt free or staying in debt in the next 10 years.
You can find unsecured debt consolidation loans for bad credit. Check your credit, and shop around to find a lender that will work with you.