Bad Credit History? Debt Consolidation Solutions

Once upon a time, I was deep in debt.  I lost the highest paying job I ever had when the company closed down and it took me way longer than expected to find a new job. I started clocking up credit card debt until eventually, I had 3 credit cards that were all maxed and was using one card to pay the other each month. What a mess.  And stress.

When I finally got a new job I was able to start looking into debt consolidation solutions.  If you’re facing a similar situation right now, you’re going to want to read on…

Bad Credit History? Debt Consolidation Solutions

This article is published in partnership with Mediabuzzer.

Like it or not, every person has a credit score, which is a method for banks and other lenders to assess a person’s credibility, and it is oh so easy to be late with a payment or even miss one completely, and this can have a negative impact on a person’s credit score.

Many people mistakenly assume that if you have a far from perfect credit history, you have zero chance of a loan, yet with online financial institutions that are dedicated to helping people recover from debt, even with a bad credit score, thousands of people have successfully eradicated their debts.

Credit Score System

If you happen to be in Australia, the Credit Score system in Australia has come under fire recently, prompting revised laws that give the lender more data on a person applying for a loan.

The same goes for the borrower, and having a history of repayments gives you an easy to understand account of all previous repayments and that helps you to assess whether or not you can afford something.

The credit score is calculated based on several factors, such as age and employment, and, of course, the person’s credit history – which also covers loan applications – and a person’s score would be somewhere between 0 – 1,200. If your score is not exactly perfect, this should not affect your chances of obtaining a debt consolidation loan, which in effect, is the best way to handle multiple debts.

Online Solutions

The answer to your financial problems can be found with a simple Google search, and if you look for a finance provider that specialises in debt consolidation for people with bad credit history, your loan application is likely to be approved.

It might surprise you to learn that many people from all walks of life turn to bad credit debt consolidation loans, as this is the most cost-effective way of handling multiple repayments.

Flexibility

The loan provider would ideally be flexible enough to incorporate your needs, and by agreeing to a single monthly payment that you can afford, the stress of not being able to meet the multiple repayments miraculously disappears.

It is imperative to take prompt action, and if you are tempted to simply ignore the demand letters and block the phone numbers, bad debt doesn’t go away.

By acting quickly, you can avoid further damaging your credit score, and ultimately, this can be reversed into a perfect score, which will help you at some point in the future. If you’d like some further reading on the definition of debt consolidation, there is an informative article that will help you to understand how the system works.

Compassionate and Understanding Lenders

We all know just how easy it is to fall into debt, and who knows how many people you know that are currently, or have already implemented, a debt consolidation program. The process is strictly confidential and it is the role of the online lender to tailor the consolidation loan to suit the client.

If you continue to penalise a person because of their financial history, it makes it that much harder to recover, and with forward thinking online lenders who understand this, there are always cost-effective solutions to the problem of multiple debts.

Fortunately for me, I found a very compassionate and understanding lender. 

Once I could prove I was paying down my debt every month, my boyfriend at the time (who is now my husband) offered to rescue me by consolidating all my debt onto his home loan. 

He lent me the money to pay off and close down all my credit card accounts and then I paid half of my salary every month into the home loan.  This way I stopped the continuous cycle of paying up and spending again.  I have never applied for a credit card again.  Amazingly though, my hubby allows me to use his.  Now that’s Trust.  Wonderful man!

Over to You

Have you ever been in this situation and found your way out of it? Or are you in this situation now? 

It’s far too easy these days to fall into the debt trap. Student loans, business loans, credit cards… thankfully, there are companies now making it easier to get out of debt too.  Here’s to clearing your credit history.

If you feel comfortable doing so, please share your experience below.

About Lauren Kinghorn

Inspiring the Spotlight on Mom Entrepreneurs

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