Choose debt consolidation near me now
When people start to experience financial difficulties, they often visit De Debt now >>> and consider debt consolidation loans as a way to solve their debt problems. They do this in order to reduce their interest rates and combine all their payments into one reasonable monthly payment.
Financial institutions often ask for collateral when they apply for a debt consolidation loan, especially when someone has difficulty managing all their payments. They want to make sure that, in any case, they will recover the money they have lent.
So what if you have nothing to offer as collateral? Many people use a credit card to pay other debts at an interest rate of 20%. Others apply for an unsecured loan from a finance company at 30% or more. But if you are trying to reduce your debt, it is highly likely that these routes will not get you going very quickly, because much of your debt repayment will go directly to interest, and almost not to the principle.
Problems with Credit Report and Credit Score – Debt Payment Issues
There are many credit report and credit score issues that can prevent people from being approved for debt consolidation loans. Delays in the payment of debt or receivables for recovery adversely affect people’s credit scores. High balances due can make this problem worse. With so many variables, it’s best to find out in detail how your credit score is calculated.
Inadequate income to qualify for a loan
Usually, the payment of a loan is more expensive each month than the minimum payment on credit cards. By the time someone realizes they could benefit from a consolidation loan, they may only be able to make the minimum payments on their credit cards and not a penny more.
The minimum credit card payments are so low that the balance of a credit card balance can take several decades, and only if you stop using the card to make your payments. Consolidation loans can not be repaid over a long period unless secured by your home (this is called a second mortgage ). Consolidation loans are generally amortized over 3 to 5 years. This means that payments must be high enough to repay the loan in 3 to 5 years.
If your income does not allow this type of payment, you may be refused for a consolidation loan.