A bad credit history does not prevent a debtor from applying for a loan in future. An individual who is applying for a loan with bad credit may not be approved by all creditors because on the creditor’s part, it may be a risky deal. However, there are many financial institutions offering loans to people with bad credit and there are several options a debtor may turn to.
In majority of the cases, the sole purpose of applying for a bad credit loan is to pay back the previous debts. But availing a loan afresh may add up to the trouble the debtor is already going through. Often debtors take out a debt consolidation loan to resolve debt problems. Again, a consolidation loan requires collateral if it's a secured loan. In case of an unsecured loan, the rate of interest may be very high and the debtor may find it difficult to pay the high interest rate.
Comparatively, debt consolidation program is a better option. With little guidance on how to proceed, the debtor can opt for a debt consolidation program and lead a debt free life. At times, it may serve your purpose better than if you are applying for a loan with bad credit.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.