Bad Credit Loan - Indiana
Are you battling high credit card debt and thinking about getting a loan because you have bad credit and have fallen several months behind on your payments? You are not alone.
Many residents in Indiana and all across America are also facing a debt crisis of their own. Just watching your credit rating plummet and go from good to bad is no answer. There is good news -- help is available. Consider these popular debt relief options -- debt consolidation through a credit counseling agency, debt settlement, loans, or even bankruptcy.
See about your options in this brief overview:
Typically, debt consolidation includes combining, or "consolidating," your credit card debts into one, more planned, and more manageable payment that is made to a credit counseling agency. By comparison, debt settlement gives many consumers who are truly burdened with large debt, a chance to settle, or negotiate, with their creditors to pay considerably less than what they originally owe. Finally, even if you have bad credit and are seeking a personal loan, the loan consolidation process often involves combining your high-interest credit card debts into one, reduced interest loan.
Consider Your Alternatives to Bankruptcy First
In these difficult financial times, many people have found that debt relief through consolidation and settlement has provided them with a viable alternative to bankruptcy. While bankruptcy can offer many consumers a new beginning, it impacts your credit rating in a more negative and long term manner.
To see if you qualify for debt relief without a loan and to see how much you can save, request a free debt relief analysis and savings quote today.
Is Debt Consolidation for You?
As previously mentioned, debt consolidation or a debt management plan is a widely-used debt relief option that has aided many consumers with bad credit and debt problems who need a more predictable and structured way to achieve debt-freedom. Debt consolidation, in most cases combines or "consolidates" your debts from multiple credit cards, and other kinds of unsecured debts including utilities, medical bills, or department store charges, into one, more manageable and more affordable monthly payment that is then paid to a credit counseling agency.
What should you expect when you enroll in a debt consolidation program? Most likely, you will receive a one-on-one consultation with a credit counselor whose job it is to review your finances, income, and total debt amounts. Once the counselor has an accurate assessment of your finances, they will determine a reasonable amount that you can set aside to pay off your debts. Typically, their goal is to design a payment plan for you that is more affordable and lenient. Credit counselors generally submit proposals (on your behalf) to your creditors requesting lower interest rates, and/or the waiving or removal of any penalties or late fees.
Those creditors who accept these proposals are put into the debt management plan. As mentioned before, the intent of debt consolidation is, typically, to make your payment more affordable. With a single payment plan that is more structured and easier, you could potentially send more toward paying off the principal of your debt rather than just the interest. By doing this, you reduce your debts faster, instead of continuing to pay higher interest rates on your monthly credit card debt bills.
Bad Credit, Loans and "Paying Off Debt"
Many consumers these days who have seen their good credit go bad, turn to personal loans as a means to help them pay off their credit card debts. As mentioned earlier, depending on your situation, a debt consolidation personal loan usually consists of pooling your high-interest credit card and unsecured debts together into a single, reduced interest loan.
Don't be confused, though, because debt consolidation (through credit counseling) is very different from taking a debt consolidation loan. In order to obtain this type of loan to pay off your unsecured debts, you put "secured" assets like your home at risk because they are used as collateral on the loan.
In contrast, debt consolidation through credit counseling is designed to help you out of debt without the financial risks typically associated with taking loans. By its very nature, a debt consolidation loan could increase your liability. In spite of their best intentions, many consumers simply are unable to avoid using their credit cards which means they end up coping with new, high-interest credit card debts as well as a loan. Unfortunately, a debt consolidation loan could make debt relief even harder to reach.
If like many consumers, you are trying to decide between relief options like personal loans and debt consolidation, consider your comfort level. Perhaps you are a disciplined consumer and believe you can manage the risks of a loan. But, if you are facing bad credit and are deep in debt, then debt consolidation through credit counseling could offer you a simpler and more certain way to consolidate your high-interest debts with a single, easier to pay plan. You could find that the plan suits your comfort level because it is a more manageable method to pay off your debts.
To see if you qualify for debt relief without a bad credit loan, request a free debt relief analysis and savings quote today.
"How Much Can Consolidation Save Me?"
Most people probably like the idea of saving money - if it is done wisely. For many, especially those devoted consumers who can monitor their spending and can put their credit cards aside, debt consolidation may get them on the road to lowering their debts and even lead to savings.
How could debt consolidation help you save? Usually, credit counselors request a more manageable repayment plan from your creditors. However, you are still an important part of the process because you need to maintain available funds in the repayment account that the credit counseling agency sets up for you.
When you enroll in a debt consolidation or debt management plan, it's important to understand how much you will be potentially saving every month. Since everyone's savings will be different, knowing the factors used to calculate your savings will help. For instance: What is the total amount of your debt? What are your current interest rates? And, what types of late fees or penalties do you have?
The good news is, if you want to pay off, manage, and lower your credit card and unsecured debts, you can begin today by exploring what debt relief can do for you and your family.
Compare your debt relief options now by answering a few questions to get your free debt relief analysis and savings estimate. Start today!
How Could Debt Settlement Help You?
For many consumers with bad credit who are deep in debt, debt settlement has solved their substantial financial problems.
How is settlement different from other debt relief options? First, you should know the potential downsides before embarking on debt settlement because this will make your decision easier. In most cases, you will be counseled to stop paying your credit cards bills. The monies you would have used to pay credit cards you will let accumulate over a period of time. Later, the accumulated money serves as a reasonable settlement offer to your creditors.
You might be asking: When I stop paying credit card companies, could I be sued for, essentially, defaulting on the terms of the credit card agreements? This is possible.
Also, settling with a credit card company negatively impacts your good credit and you will probably see credit scores decrease. However, in spite of how debt settlement can lower your credit scores, it is much less severe and has a shorter impact than bankruptcy.
The bottom line is, if your debt problems seem like a bad dream, there are reasonable solutions (besides bad credit loans) to choose from and a variety of options to help you regain control of your finances -- such as debt consolidation or credit card debt settlement.
Begin today by finding out how debt relief can help you by getting a free debt relief analysis and savings estimate - at no obligation to you.
