I’m sure you’ve perhaps seen some advertisements for bad credit debt consolidation. And Even if you have lots of debt and have not made a payment for several months, these agencies claim and assert that they can help you consolidate your debt despite of your bad credit. Some of these firms legitimately want to help citizens; people with bad credit consolidate their debt. They normally charge reasonable upfront fees. They avoid making exuberant claims, and propose professional references if you request it. However, there’s another type of bad credit debt consolidation firm. The latter kind of bad credit debt consolidation agency a lot more common than the former, unfortunately for you.
So you may wonder: what in the world do debt consolidation companies accomplish for you?
Basically, bad credit debt consolidation agencies speak to your creditors and try to reduce your monthly payments and your interest rates as well. You will then send the money to the debt consolidation company, which will redistribute the money to your creditors.
Now, you might ask the question: does legitimate bad credit debt consolidation really exist?
The thing is that if your credit score is low, there’s a slim chance that you can qualify for an unsecured loan through your bank. However, you may, hopefully, be able to refinance your house or even your car to pay off your unsecured debt. If your credit is truly bad, the credit card company may raise your interest rate without any warning.
So, even if you’re badly in debt and have bad credit, debt consolidation is indeed possible, but you need to make sure you are working with a respectable and honorable company which does want to help you get rid of your debt. Do some research is the best advice I could give you. Don’t rush and make deals with the first bad credit debt consolidation company you meet.