There are so many people who have a badly damaged credit score. But just like everyone else they want to improve their financial satiation. Consolidating their debts into a single payment is a very smart decision. It sets you free from keeping the track of all your payments and dealing with creepy creditors. On top of that, you choose to make the monthly payments that you can actually afford. But is debt consolidation loan available for people with bad credit? Let’s find out right now.
Multiple debts, not tied to any asset, credit card loans among them, can be consolidated into one single loan, with a single monthly payment and lower interest rate in many cases.
If you have a house, a car, some property or a saving account, borrow using them as collateral. Most likely you will benefit from the lower interest rates than the one you have to pay.
Multiple private student loans can be consolidated in a single one. Consider a joint consolidation with your spouse; combine multiple private student loans of your children.
Keep in mind that the extended term of loan may lead to the increased interest payment over the whole loan period and higher total costs.