Colony Associates, Alamo Associates, and White Mountain Partners are flooding the market with debt consolidation offers.
American consumers are becoming victims of some unethical debt consolidation loan providers. The consumers’ credit card debts are continuously rising in America and the debt consolidation loan providers are benefitting from such consumers. They are offering them debt consolidation loans at lower interest rates which, according to the consumers, is not really the case. In 2017, consumer credit card debt in America was close to $1 trillion and the credit card balances are continuously rising even today.
In almost all situations, the financial needs are urgent, and if you are looking for a borrowing option, it is mostly to settle an immediate need. You would not want to have an association with any services that take weeks and months to process your application, and it will be a long wait before you get your hands on the funds.
Many people struggle in planning their financial goals and thus can get into a loophole where they cannot meet their financial obligations. If you have specific repayment capacity in mind, you can put the information in front of the team before applying for the loan, and they will look for a borrowing plan with your repaying requirements. Having a proper control over the repayment schedule ensures that you do not default on your payments.
If you have bad credit, you will likely pay a higher interest rate. Some personal loans come with origination fees that can equal up to 6 percent of your loan amount upfront.
There are ways to get a debt consolidation loan with a low credit score.
Check your credit report: Are mistakes on your credit report the reason why your score is bad? Check for errors such as wrong accounts, incorrectly reported missed payments or inaccurate credit limits. You can check your credit report for free once a year at each of the three credit bureaus.
Improve your debt-to-income ratio: If you don’t need to consolidate debts right away, consider ways to increase your income and pay off small debts. This improves your debt-to-income ratio, which lenders use to evaluate your ability to repay a loan.
