Good Debt Consolidation Loan For Bad Credit?

Question

I am in need of a good debt consolidation program, but I have bad credit and no collateral. Is there any service that can help me?

Answer 1

Generally, these loans require collateral that can be either your home or some costly property. But sometimes, you can get these loans as an unsecured personal loan. But they charge high interest rates.

When going for a debt consolidation loan, you should consider some important factors. They are: cost of taking the loan, the annual percentage rate (APR), period of the loan, and the total amount borrowed. Ensure that the debt consolidation loan charges a lower interest rate than the rate for your current loans. Interest rates are usually decided by factors like loan amount, loan terms, and personal details.

If the repayment period of debt consolidation loan is longer, you can end up paying a lot more in interest. This makes it vital to compare the interest rates and repayment periods of various lenders. Debt consolidation calculators offered by various financial organizations can be used to achieve the same.