If you are receiving unsolicited phone calls from an entity pretending to be ACCC (a trusted non-profit credit counseling agency), please be assured that ACCC’s policy is NEVER to contact you unless you’ve explicitly requested us to call you. Also be cautious of emails from an unusual or unfamiliar domain. ACCC’s domain extension is @consumercredit.com, and any emails using a different extension should be treated with suspicion.

×

ACCC’s Client Login allows current clients to access their program information, including the due date, program benefits, and other documents.

Select a Client Login below based on the service that you are currently enrolled in:

Debt Management Program

Client Login

Not yet a client, but looking to get started?

ACCC offers debt relief options to individuals and families that are suffering from stress related to credit card debt by providing effective credit counseling, helping to consolidate debt, and advising on debt management.

Get Started

Wait!

You are now leaving the Consumer Credit website and are going to a website that is not operated by ACCC. We are not responsible for the content or availability of linked sites.

Are you sure you want to leave?

No, return me to the previous page.

Yes

Consolidating Loans With Bad Credit

If you’ve got debt that’s spiraling out of control, you may start noticing ads promoting loans for debt consolidation. If you’re considering consolidating loans, it’s important to have some basic information first. Also, be aware of other debt consolidation options that don’t require you to borrow money. And how does your credit impact you consolidating loans? For many people with low credit scores, debt consolidation might actually help improve their situation.

If you have debt, be cautious with consolidating loans.

When paying off debt, be cautious with consolidating loans.

What Does Consolidating Loans Mean?

Bad credit doesn’t mean you don’t have any options, but it does mean your choices are limited. Let’s take a look at how to find debt consolidation loans with bad credit. Consolidation loans combine most, if not all of your unsecured debt and make one single monthly payment. In simpler words, it means you pay old loans with a new loan.

Problems With Consolidating Loans

Loans for debt consolidation come with costs and risks that consumers should be aware of before signing on the dotted line:

  • Consumers typically turn to consolidation loans when they’re having significant debt problems. They’re vulnerable and perhaps even desperate. It’s no surprise then that consolidation loans often carry hefty interest rates.
  • Homeowners may be able to avoid the steepest interest rates by taking out a home equity loan. However, this “solution” brings with it the potential risk of foreclosure if the equity loan isn’t paid on time.
  • Taking a loan to pay down your current credit card balances leaves open the risk that you’ll then run those cards back up again. This leaves you with more debt than you had at the start. Therefore, it can seem like trying to get out of a hole by digging deeper.

Consolidating Loans & Credit

Are you aware of your credit score? If you are headed towards consolidating loans, it is always a good idea to know the numbers. You can get a free, safe credit score report from AnnualCreditReport.com. If your credit rating is very low, counseling is a good idea. Bad credit often involves a lack of financial skills or knowledge. The better your credit, the better rates you will get from lenders.

Debt consolidation with bad credit is not impossible. However, you need to put a little extra effort to make it work. In the meantime, make payments on time and in full. Our debt counselors say that paying on time is the best way to improve your credit score.

If you are seeking debt assistance, schedule a free credit counseling session with us today. 

ABOUT AUTHOR / Dilini

Dilini is a Marketing Communications & Programs Associate at ACCC. To anyone, managing finances can be a real challenge! Any tips and tricks to help get through this are great! Dilini will share her experiences, tips, and tricks along the way through the Talking Cents blog. Stay tuned!

View all author posts →

creditU

Your Ultimate Money Management App

Meet CreditU, the ultimate one-stop debt and financial management app! See your full financial overview, including debts, income, expenses, and savings.

CreditU Apple App Store
Dev Tool:

Request: blog/consolidating-loans-bad-credit
Matched Rewrite Rule: blog/([^/]+)/?$
Matched Rewrite Query: post_type=post&name=consolidating-loans-bad-credit
Loaded Template: single.php