Even though there still seems to be advertisements for bad credit debt consolidation loans, it seems that they are impossible to get. If they are impossible to get then do they really even exist anymore? Just because the commercials are still airing and there are many websites out there advertising that they can give consolidation loans to people with bad credit, it does mean that it is something that someone can really turn to for some financial assistance.
These loans have largely disappeared as a result of the current economic turmoil; you might have heard of the credit crunch and this is a prime example. Banks and other lenders are simply not able to lend to anyone and everyone as they were doing only a few years ago. The state of the economy is actually largely due to irresponsible lending practices, which means that lenders are especially careful at the moment.
While it seemed to work for a while, the snowball affect took place and now just about everyone is suffering because of it. Now, lenders are a lot more strict with who they will give loans to. Even those with great credit scores are having time obtaining credit, so what would make anyone believe that those with bad credit will have it any easier?
However, this does not mean that people who have weak credit ratings have no options open to them, even if they have a lot of outstanding debts. They can pay off their debts the (incredibly) slow way, by paying their monthly payments plus anything else they can afford to. However, this can be next to impossible and in the case of larger debts, could take decades. Someone who has a lot of credit card debt or other unsecured debt is much better off turning to a debt settlement program for assistance. These programs are designed to make it easier for consumers to get out of debt, reduce their costs in many cases and allow them to rebuild their credit at the same time.
The debt settlement programs step in to help you make deals with your creditors. Your debts can be drastically cut down in terms of how much you owe. Once an agreement is made with your creditors, you pay the agreed amount and then the rest of your debt is forgiven. Your creditors will report that you have paid in full as agreed, or something to that affect, to the major credit reporting agencies.
You won’t have to make those high monthly payments with their even higher interest rates anymore. Instead, you’ll have monthly payments which you can afford while you rebuild your credit.
The challenge is finding a reputable debt settlement program. There are many choices available, so research the different programs to find ones which have a good track record and satisfied customers. Make sure to find out if they’ve gotten into trouble with the law or seem to be a defendant in civil court often.
After doing your due diligence, you’ll know who to turn to when you need help. You’ll be able to finally pay off your debts and get back into good financial standing.