Are you struggling to manage your multiple credit card debts? Maintaining multiple cards all with different fees and varying interest rates can be difficult to manage. You might default on your payment and incur insurmountable amount of debt. Therefore, in this situation debt consolidation can help you consolidate your multiple credit card debts with a single affordable monthly payment. You can consolidate your high interest credit card debts in to a low interest single monthly payment. But if you have poor credit then your consolidation loan application might get disapproved. So here are a few points that will help you get consolidation loan despite your poor credit:
1. Prepare a stringent budget plan so that you can overcome your catastrophic financial situation. You need to accept the fact that will not be easily to come out of debt. Therefore, following a monthly budget can help you pay off the debt in an organized way. Make sure that you keep track of your expenses so that your expenses do not exceed your income.
2. Review your financial situation and decide whether you need help of a credit counseling agency or professional debt arbitrator to manage your current financial situation. Make sure you find a reliable debt relief agency with a Better Business Bureau accreditation to manage your financial owes.
3. You can approach your bank or credit union to apply for new loan to consolidate your debts. If you have an account with the bank then you can apply for a personal or signature loan to consolidate multiple payments. But you might not be able to get a loan if your credit score is low. Traditional lenders and banks will check your credit report before approving your loan application. If you have poor credit score then you can apply for secured consolidation loan. You are required to keep security against the loan amount.
4. If you attend college then you can be eligible for financial aid that can be used for paying off your tuition fees, hostel expenses etc. This grant money can be used for paying off your student loan debt as well as other debts. If you want to acquire more information then you need to contact the school’s Financial Aid Office.
Therefore, if you follow these four points then you can get a consolidation loan despite your poor credit. Once you pay off the debts then you can work on repairing your credit report.