How to get a debt consolidation loan with bad credit

If you're juggling a number of credit commitments that you're having difficulty keeping on top of your payments You can combine the loans into one to reduce your monthly payment.

You are able to borrow cash to cover all credit obligations you have currently and you owe money only to one lender.

There are two kinds of debt consolidation loans:

  • Secured - in which the amount the loan is secured by an asset, most often your home. If you fail to make repayments then you could end up losing your property.
  • Unsecured: where it isn't with your home or any other asset.

The debt consolidation loans secured by your home can be referred to as homeowner loans.





If you are considering the possibility of a loan for debt relief?

Consolidating debts is only logical If:

  • Savings aren't destroyed through charges and fees
  • you are able to afford to keep on making payments to the point that it is paid back
  • Use the occasion as an excuse to trim your expenses and get to normal
  • You pay less interest than in the past and the total amount due is reduced (it could be higher when you pay over a longer time).

When you are considering a loan for debt consolidation take into consideration any event that could happen in the near future that might make it impossible to keep on top of repayments. Consider, for instance, what happens is the possibility if interest rates rise or you become sick or get laid off?

If you're frequently taking out credit to pay for the necessities of your household it could indicate that you're in financial trouble. A consolidation loan may not be able to solve your issues.

It's essential to obtain free advice on debt before applying for a debt consolidation loan.


A debt consolidation loan isn't a good idea, it doesn't make sense.


The debt consolidation loans will not be a good choice when:

  • you're unable to pay for the loan repayments
  • you aren't able to pay off all of your other credit obligations or outstanding debts through the loan
  • You end up paying more in total (due in part to the month's payment being higher or the period of the agreement being extended) or
  • You require help in resolving your debts instead of the need for a loan, a debt advisor could be able to discuss with your creditors to agree on the repayment arrangement.


Consolidation loans for debt that won't expose your home to risk


The best option is one with 0% or low-interest credit cards for balance transfers. However, you'll have to think about whether a fee is added to the balance transfer.

It is probably the cheapest method if you pay back your loan in an interest-free or low-interest timeframe.

Remember that you'll likely require a credit score of a high to qualify for one of these cards. You may also be required to pay a fee for transferring balances.

It is also possible to consolidate your debts into an unsecured personal loan, however, you'll require a high credit score to be eligible for the best rates.





Get Advice on Debt consolidation loans

Take advice prior to making the final decision. If you're thinking of proceeding with a consolidation loan think about speaking with Acme Credit financial advisor who may be able to determine the best product to meet your needs. Also, you can get apply now for Debt management plan today.  

Location: United Kingdom

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