In today's world, there are few things that stigmatize a person like a bad credit score.
If you are among the millions of Americans experiencing financial hardships as a result of the downfall in the economy, then you are not alone by any means.
It may feel like you are stuck, backed into a corner that you will never get out of.
But when you know your options and become an educated consumer, you do not have to suffer under the stigma of bad credit! Top debt consolidation companies are looking to help people just like you and they want to get your business now, bad credit or not.
If you have unsecured debt, such as credit cards, then you are definitely a candidate for a consolidation loan that can immediately begin to improve your life and financial situation.
Yes, it can improve your financial situation! Here's how a consolidation loan can help you if you have bad credit.
The lender will first contact your creditors and negotiate settlement amounts for each of your unsecured accounts.
They will ask the lender for reduced fees and interest, a lower interest rate and a reduction in principle on each of your accounts.
Once the creditor agrees to the terms, the lender will formalize an agreement with the creditor, who is then paid in full.
It will take some time for this payment to appear on your credit report.
Once it does, your score will begin to improve slightly at first.
The lender will repeat this process with each of your creditors.
You will have the opportunity to discuss the progress and outcome of these negotiations with your debt specialist.
Once the process is complete, you will sign your final loan papers and enter repayment.
At this point, you will have only one monthly payment that is less than the total of each of your monthly credit card payments.
You will easily be able to afford this new payment amount and you can look forward to having your debt entirely paid off in the next 3-4 years.
Making just the minimum payment on your credit cards, you will pay off the same balance in somewhere around ten years.
Bad credit or not, you should talk to a consolidation company today before you find yourself drowning in growing credit card debt.
There is sure to be a lender and consolidation program that is right for your specific situation.