Debt Consolidation Loans for Bad Credit

Debt consolidation loans for people with bad credit are taken out by many. And even though it sounds like a great idea, consumers often don’t realise that more loans equal more payments. Debt consolidation loans may seem like a perfect fit for people with bad credit, but it’s hard to find loan options with reasonable interest rates and repayment terms.

This is because banks, credit providers and micro-lenders tend to base their pricing on risk. Simply put, the lower your credit score is, the higher risk you are considered to be as a client, and as a result, you’ll be charged a higher interest rate, over a longer repayment term.

As it is, it’s going to be a challenge for you to find a credible creditor who won’t reject your application.

Beware of Loan Sharks

Let’s say there are a few reputable credit providers out there who are willing to grant debt consolidation loans for bad credit at good interest rates. Bear in mind, you’ll still be in debt for longer. This means that in the long run, you’ll actually spend a lot more.

You will find an abundance of zealous lenders online, stumbling over themselves to offer you a loan. On the other hand, a lot of these no-credit-check loan lenders are often untrustworthy and tend to charge exorbitant fees.

There aren’t many ways of finding out whether or not they are, in fact, reputable businesses, as they operate solely online. Be sure to check that they are registered credit or financial service providers. Rest assured, National Debt Advisors (NDA) is registered with the National Credit Regulator. On the whole, this industry has many loan sharks infesting its waters.

Should I Apply For A Debt Consolidation Loan?

To cut to the chase, if you’re in a financial jam, be it from falling ill, losing your job, shopaholism or just ill-informed financial planning, and have a bad credit record, added debt consolidation, payday loans or personal loans for bad credit should be the very last thing you consider.

Having access to more credit – as someone who already struggles to service their debts – means that there is a good chance you will just incur more debt and start slipping up on your instalments once again. Only this time, you stand to lose your assets or face other devastating legal consequences.

Instead, we insist that you make the smart decision and contact NDA to find out more about debt counselling. Send us your details via our website contact form for a free call back and we will get you back on the road to financial freedom!