Consolidating loans bad credit
Debt and bad credit are very close relatives, which should be no surprise since accumulating too much debt is the reason people have bad credit.Unfortunately, the consequences of bad credit – high interest rate charges on credit cards, auto and home loans, even deposits for housing and utilities – are what keep people in debt.Bad credit can prevent you from qualifying for debt relief programs like low interest debt consolidation, and it can cost you thousands of dollars in interest to credit cards, auto and home lenders.
If you are overwhelmed by debt and need some relief from monthly payments, you may find that traditional debt help options are not available to you.
A 0 loan that would have cost 5 if you had paid it back in two weeks, will cost nearly 0 two weeks later and go up from there.
The definition of bad credit is when you must accept high interest rates and very uncomfortable terms and conditions to borrow any amount of money.
You could be faced with liens against your property; wage garnishment; overdraft fees from your bank; and possibly a day in court.
At the very least, the lender will “rollover” your loan and add more interest to the balance due.