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Bad credit debt consolidation loans

What is a bad credit consolidation loan?

Bad credit consolidation loans sound like a great idea if you have serious debt. We’ve been told that the consolidation of credit will make it much easier to afford. If you’re looking at debt consolidation, bad credit will prevent you from doing this.

Bad credit consolidation may actually make it more difficult for you to handle your debt.

How can bad credit consolidation make it harder for me to pay my debts?

Your existing credit debt is incurred prior to you having bad debt. The interest rate of the bad credit debt is therefore lower than the new bad credit debt consolidation loan. Debt Consolidation with bad credit involves a higher interest rate as with bad credit have a higher chance of default. Through consolidation of credit you also go from many small payments, which can be easier to find, to one larger payment.

Debt Mediators regularly helps people who’ve been looking for a bad credit debt consolidation loan. We can help you find a solution for bad credit debt.

In July 2010, the Australian government introduced legislation that made banks responsible for ensuring that borrowers could complete loans.

If you’re looking for bad credit consolidation loans, the very fact that you have bad credit gives an indication that you might not be able to afford the bad credit debt consolidation loan, especially with the interest rate that is needed to offset the risk.

There is one exception: bad credit debt consolidation can still be done through mortgage refinancing. 

What is mortgage refinancing?

Refinancing is the process of replacing an existing debt agreement with new or varying terms. Many people do this when they spy a new offer that their current mortgage repayments do not allow, which can be beneficial in certain situations.

Mortgage refinancing can also be a huge risk if it is not researched properly, and it can also depend on the laws and regulations applied in your country, state, or city. It can be useful to reduce repayment amounts each month, reducing alter risk and an easier way to gain some cash back in the meantime. However, there can be stringent penalty clauses that can be a huge risk when taking out mortgage refinancing, so it’s recommended to research this option carefully before giving the green light.

Bad credit debt consolidation loansMortgages give the lender security and, with lower risk, the rates can be reduced.  As a result, the repayment is lower and a “benefit” can be showed. These bad credit debt consolidation loans are available through “non-conforming” lenders.

If you’re applying for bad credit consolidation loans, clearly your credit is going to be a problem.

If you have a property with equity, you can try this bad credit consolidation loan method.

If you don’t, you should try other options such as Debt Agreements and Personal Insolvency Agreements. Call our hotline to learn more about these and other options.  Our consultations are free, no pressure and will give you a plan that will see you debt free in 5 years or less.