Everyone knows there are ‘debt consolidation’ loan companies so to speak, but people looking for loans for people with bad credit know that this traditional option isn’t necessarily what they’re looking for. There are also plenty of options regarding loans for people with bad credit out there, but everyone also knows that many of these loans are for hundreds of dollars and have high interest rates and short-term repayment schedules.
So the question remains: Are there really bad credit loans that are going to help consumers out with debt consolidation? The answer is yes, but first you really do need to think about the amount that you need. If you only need a couple of thousand dollars to consolidate a few bills, then you’re going to have a much easier time finding the right loan than you would if you needed say 25,000 dollars.
What I see mostly is installment loans for people with bad credit that will give you about 2,500 to 5,000 dollars, so if you need more than that, good luck. If you have a credit score that is on the higher end of the bad credit score range, then you might be able to score more than 5,000 dollars. For the most part, however, you’re going to have to make sure that you can deal with consolidating debts that total up to that dollar figure.
What type of debts do you have? If you think about it, you’re going to be able to take quite a few small debts that have higher interest rates and make only one monthly payment to pay them off faster. Since most people with bad credit have smaller balances due to not being able to obtain huge loans, credit cards with high limits, etc., this type of loan would help most people.
If you’re not able to include all of your debt in that consolidation loan, it can still help you get rid of the debt you have with the highest interest rates. Once you pay that debt consolidation loan off, you can get another for some of your other bills. You can see how even consolidating a few bills would help, so if you could use up to a 5,000 dollar loan to do just that, then you might be in luck. Just remember to make sure the repayment schedule and loan payment amount are fine for your budget.