Debt Consolidation For People With Bad Credit

What do you mean people with bad credit here? People with bad credit reports but are not anymore in debt or people who are still in debt?

Good point blur, but either way the consumer is worried about bad credit, and how to get relief from it. Debt consolidation, unfortunately, was on top of her list. Followed by bankruptcy...peterpanamerican suggested credit counseling and debt settlement--

What is her debt type? Unsecured. She said, $17,000 on credit card, that qualifies for debt settlement. She just did not mention if her accounts are already past due.

Okay her problems are:

1) Her poor credit score (bad credit)
2) What debt relief to use (debt consolidation was her first choice, second was bankruptcy)

I think number 2 is pretty much covered and so for concern number 1, to repair credit she can--- reduce her debt. The FICO score depends a lot upon how much money she owes on her credit card in relation to how much credit she still has available. The general rule is to try and keep the balances below 25% of the total available balance to get higher credit scores.

to add to what Em has said, to improve bad credit, you can pay off instead of transferring your balances. Some  people seem to think that transferring a balance from one credit card to a new one, and then closing off the card is a good way to increase their credit scores, but when you close one card, you’re actually lowering the ratio of: available balance to used balances: which would a likely lower your credit score. If for example your credit limit on 4 credit cards is $8,000, and you owe a total of $2,000 (which is 25% of your available credit). If you transfer all the balances onto two cards and cancel your other two cards, your total credit available is now only $4,000 and you owe $2,000---- which means that you are using 50 % of your available money and that would make your credit score decrease.

I agree, so try to keep your unused credit card accounts -don’t close any of your unused credit card accounts just because you are applying for a new one. What happens is when you close them, you’re reducing your available balance, and having new accounts also lowers the average age of your credit accounts- and that is another major factor of your FICO score.

Good luck on your search for a debt relief solution, I agree with them, debt consolidation (loan) is a bad idea, you are just digging a deeper hole that way.

If you have more concerns, feel free to fill out one of the forms here to avail of the free consultation.

Good luck on the credit repair too!

Debt consolidation for people with bad credit.... I never knew that was possible. I always thought that there were things I needed to qualify for and such.

Okay here's my situation. I am in $15k in debt with a house almost foreclosing. I do not have extra income and I can hardly pay for the bills that I currently have because of sickness. What do you suggest I do?

How much is your interest, and when you say that you don't have extra income, you mean that the resources you currently earn are just enough? Do you have disposable income?

Well pretty much everything I make is enough for me. I try to make minimum payments every othr week or so but it just doesn't go towards the balance on my loan. My current interest rate is at 25%.

Have you tried borrowing against your 401k or from family and friends?

Violin Girl: Given your debt amount, the more appropriate thing to do is to settle your debt. In as much as credit counseling seems like a viable option for you, debt settlement is a much more effective means of taking care of your debt. Credit counseling agencies qualify cardholders with debts that are at least $9k below.

There may be a set up fee for the debt settlement company, which is 15% of your total debt amount, but bear in mind that the payment will be spread out for a 1-1.5 year period.