Applying for debt consolidation with bad credit.
Finding good options for debt consolidation with bad credit is pretty tough. The value of debt consolidation is being able to pay off multiple loans or debts by taking out a single new loan. With a loan that features a low-interest rate or longer payment terms, consumers can typically lower their monthly payment or pay their debt off faster.
But when you’re looking for debt consolidation with bad credit, finding a low-interest loan from a legitimate debt consolidation company is almost impossible. You will find crazy offers from sketchy debt consolidators, but interest rates can run as high as 30%, defeating the purpose of looking for debt consolidation with bad credit in the first place.
Trying to consolidate debt with bad credit is not the only option for people who owe a lot of money. One highly effective alternative to debt consolidation for bad credit is a strategy called debt management.
Debt management: an alternative to debt consolidation with bad credit.
Debt management offers a different approach for consumers seeking debt consolidation with bad credit. Instead of consolidating multiple debts into a new loan, debt management combines multiple debt payments. You make a single payment each month to a debt management program, and the program’s debt advisors, in turn, pay all your creditors on time each month. With just one amount to make, it’s easier to pay your bill on time and to have a lot less stress about your financial situation. And unlike a program for debt consolidation with bad credit, a debt management program will also work with your creditors to try to get reductions in finance charges, late fees, and interest rates, helping to reduce the total amount owed.
Advice on debt consolidation with bad credit from ACCC.
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling agency providing free credit counseling and low-cost debt management services. We work with individuals and families to find the most efficient and fastest path out of debt, and to develop the skills to live debt-free in the future.
Our debt management program offers many benefits over debt consolidation with bad credit, and our fees for debt management services are among the lowest in the industry. At your free credit counseling session, our highly trained and certified credit counselors can help you evaluate your financial situation, lay out all your options and help you determine the best choices based on your financial goals. We also offer lots of information about money management and credit counseling online, and can answer questions about paying off debt like “Is debt consolidation good or bad?”
Learn more about alternatives to debt consolidation with bad credit.