Debt Consolidation for Renters or Homeowners with Bad Credit or No Equity
If you’re facing insurmountable debts that include credit card balances, personal loans, student loans and medical expenses, you may feel overwhelmed and hopeless. Unfortunately, these balances have no doubt come at the cost of your good credit. While frustration may have set in, there is help available. If you rent or own your own home with no equity, traditional consolidation options may not be available. There are other options that can help you clear your outstanding debts and clear the path toward financial freedom.
Debt Consolidation Programs
* Credit Counseling
If you are facing bankruptcy or other financial hardships, credit counseling can be an alternative. By enlisting the help of a credit counselor, you can make sense of your finances and make choices that will positively affect your financial situation. A credit counselor will sit down with you and evaluate your accounts, balances, minimum payments and other vital information needed to create a debt management plan (DMP). A credit counselor can often negotiate lower payments for you as well as help you manage intentional repayments. While these services are not free, they can be invaluable in helping you get back on track.
* Debt Settlement
In addition to credit counseling, debt settlement can be a solution to overwhelming debt expenses. Debt settlement is a negotiation conducted with a creditor to determine a lower payment or lower balance. Not only does debt settlement benefit you, but also the creditor. If your only other option is bankruptcy, debt settlement ensures a portion of payment to the creditor. While debt settlement can be negotiated on your own, these services are often provided by a third party debt relief firm.
In light of looming credit card balances, a personal unsecured loan may be your best option, especially if you do not have any collateral. If you rent or own with poor credit, a personal loan can help you pay off your loans through consolidation. While this can eliminate your multiple debts and offer you a smaller monthly payment, it may come at the cost of a higher interest rate than may be obtained through a secure loan, such as your mortgage.
While a bad credit score or the shadows of financial ruin can put you in a predicament that can make you feel like there is no way out, there is hope and help available. Debt Consolidation programs and personal loans can assist you in finding financial freedom.