When debts become a problem, a consolidation loan can help you get back in control of your finances. But here’s the catch – as your debts got worse, so did your credit rating and now you can’t secure a loan. This situation is common and leaves Aussies feeling as though there is no way out of their debt situation. Fortunately, you can still consolidate debts with bad credit.
Debt Consolidation Loans with Bad Credit
While the big banks have hardship assistance in place, it is very rare they will lend money to someone with bad credit to help their situation improve. But there are lenders out there who specialise in lending to Aussies doing it tough, whether they are in debt, have a bad credit rating or are recovering from bankruptcy.
These non-conforming lenders don’t use traditional lending criteria which makes it possible for people with a bad credit rating to borrow money. It is through these lenders you can consolidate debts with bad credit. Positive Solutions Finance does not lend money, but rather calls on a number of affiliate lenders to help our clients find a consolidation loan with bad credit.
What Happens When I Consolidate Debts with Bad Credit?
Once a lender approves you for a consolidation loan, you will be able to pay out your existing debts. This will leave you with one loan repayment, one set of interest and fees and one regular repayment to make. The reduced interest should save you money over the life of the loan and the single repayments will be much easier to keep on top of.
Over time any defaults on your credit report will be removed and if you keep on top of your new consolidated loan repayments you should have a clean slate by the time you have repaid your debt.
What Other Options do I Have to Consolidate Debts with Bad Credit?
If you cannot consolidate debt with bad credit there are other options you can pursue. An informal debt agreement or a government registered Debt Agreement are other ways to get out of debt while avoiding bankruptcy. If you would like to talk to an expert about your situation and find out if you can consolidate debts with bad credit call Positive Solutions Finance today on 1800 560 592.
For more information on debt consolidation and how it can assist you in reducing debt, check out our debt consolidation page.