Bad Credit Debt Consolidation-How to consolidate your debt

Bad credit debt consolidation can save you money. Replacing high interest rate loans and credit card debt with a low interest loan can save you money in the long run and in monthly payments.  There are many advantages and disadvantages to a debt consolidation loan. It can be incredibly confusing with all the different options out there. Debt consolidation is your ultimate goal. Consolidating your debt can enable you to be debt free. Who wouldn’t want to be debt free!

First gather up all of your unsecured debt:

-Credit Cards

-Loans

-Unpaid Medical Bills

-Over-due bills

-Auto Loans

-and any other debt you have lying around.

Now look at the interest rates on your debt.  If you are finding that most of your interest rates fall between 13% and over, you may be a good candidate for a debt elimination loan.  If your interest rates are lower it may still be a good idea to look into a debt consolidation loan.

How can applying for a low interest loan help you?

-You will be able to payoff your debt.

-Payoff your overdue bills.

-Pay off Collections

-Save with one low interest rate in the long run.

-Lower your monthly payments to one low payment a month.

-A debt payment Plan with a payment schedule you can afford.

-And most important peace of mind! No more debt collectors hassling you!

It is vital to research different options and companies for debt consolidation. If you own your own home and you can apply for a second mortgage or refinance your current mortgage, you can use those funds to pay of your unsecured debt.Ultimately saving you money with a lower interest rate and allowing you to have a monthly payment which you can afford. If this is a route that you decide to take, you will want to research low interest rate home equity loans. Compare your current mortgage bank with different banks and companies to insure you get the lowest rate possible.  Also look at local mortgage brokers for help.

If this is not an option for you, try researching for debt consolidation companies. With our current economy there has been an increase in debt consolidation, bankruptcies, and credit counseling. A lot of debt consolidation companies are accessible through the internet. These companies are all trying to get your business. They need you to make money. So compare these companies and find yourself the best rate. Be careful, before you disclose information, make sure you are dealing with a reputable company and do not give anyone your personal information if you are not comfortable.  Read “Credit Debt Relief-Don’t get scammed!” an article by Julie Daniels our Director of Credit and Loan Finance Department.

Your financial health is important to you and your loved ones. Take the initiative to help yourself live a debt free life.

Keep up with Benjamin Finance for more information on all your financial need. If you have any questions don’t hesitate to contact us. If we don’t know the answer we will know who will!