Can I Consolidate Debt With Bad Credit?
It’s like a vicious cycle that you can’t escape. You find yourself burdened with overwhelming debt that leaves you wondering how you’ll be able to make even the minimum payments. Your debt-to-income ratio slowly rises, and missing a payment here or there means you end up with higher interest and dings to your credit score. You want to stop the cycle, but you’ve heard that you may not even be able to consolidate debt with bad credit but you don’t know what options you actually have. UmbrellaDEBT Relief wants to walk you through the best options for your financial situation.
Debt Burden And Bad Credit: A Dysfunctional Cycle You Need To Free Yourself From
It’s the classic case of which came first—the chicken or the egg? If you have a hard time paying overwhelming debt, you may likely also have a low credit score. There’s definitely a connection.
Your debt may be so high that you’ve had to make late or incomplete payments because you simply couldn’t meet the minimums. When you do, your credit rating drops, often dramatically, and sets off a cycle of even more debt burden.
When you make late payments on your debt or miss them altogether, you typically accrue late fees that are added to your debt and increase your total amount that’s owed. This means that you’re essentially increasing your debt burden, even if you make a payment. Your debt seems like it never goes down, and that’s because it probably isn’t.
When you add in that late or missed payments often trigger higher interest rates, your debt burden again continues to be heavier and heavier. You may find you are able to make fewer payments on time, if at all, and your credit score continues to drop.
It seems like a spinning wheel you just can’t escape. You may feel hopeless and without options, but that’s not the case.
Debt Consolidations: Can I Consolidate Debt With Bad Credit?
Even if you have a poor credit score, there is hope. There are many debt relief options available to you, even with a low credit score, but you’ll want to think about them very carefully. Even though you can consolidate debt with bad credit, it may still not be the best option for your long-term financial security.
Debt consolidation means that you take out a loan that combines all your debt and then requires a specific monthly payment of you to pay it back. While it may look like a good option in that you’re eliminating multiple creditors and possibly even lowering monthly payments, there’s more to it if you are looking to consolidate debt with bad credit.
You may still be able to get a consolidation loan, but if your credit score is below 580, you’ll probably find the terms of the consolidation loans worse than the terms you have with your creditors. Too often, a single-payment debt-consolidation loan ends up costing you more money if you have bad credit. This is because your new interest rate may very well be higher than the current interest rates you’re already struggling to pay.
Debt Settlement: Negotiation In Your Best Interest
Just because you can consolidate debt with bad credit doesn’t mean you necessarily should. Another option to consider is debt settlement with UmbrellaDEBT Relief. The experienced and compassionate team of professionals at UmbrellaDEBT Relief work to ensure you have the best path to your secure financial footing.
With debt settlement, we can work with your creditors to reduce your debt. We will work with you to set up a monthly payment in a debt relief program. It will be a payment towards a reduced amount of debt. We can help lower the balances you owe, sometimes up to half, and you don’t need good credit to qualify for debt settlement. Because we’re skilled in working with creditors for your best interest, you can achieve faster repayment with considerably lower payments.
Contact UmbrellaDEBT Relief Today
If the thought of one single payment is attractive to you, debt settlement may be able to help you. And you won’t have to deal with the issues of securing additional loans as you do with debt consolidation. At UmbrellaDEBT Relief, debt settlement is what we excel in because we want to help you feasibly find financial freedom. If you’re wondering whether debt settlement is the right option for you, we encourage you to contact us today. We’re ready to walk through your finances and see what debt relief options are best for you. Bad credit doesn’t have to last forever, and we can help you eliminate debt and get on the road to financial recovery. Now is the perfect time to get started!