It is hard to find a lender who will finance
your debt consolidation loan. This is because debt consolidation
loans are high risk loans due to the fact that most borrowers
go deep in debt after their first consolidation. However, you
do have other options if you cannot find a lender for your debt
consolidation loan:
The first thing to do is to ask your family
and friends to see if they can help you out. Your friends &
family could lend you money to pay off your student loan debts,
car loan payments or other bills. If they cannot help you out,
you can ask your employer for a grant or a pay advance so you
can get your life back on track.
Another option is to go directly to your credit
card company and ask for a lower interest rate or a lower term
for the loan. If you have any savings left over, you could use
these savings to pay off your debt. However, be careful when you
take money from your savings. This is because you want to have
some money left over for financial emergencies such as a loss
of job, death of spouse or disability/injury. For example, if
you have $12000 saved up right now and are in $15000 debt, you
could take out $7000 from your savings and pay off almost 50%
of your debt. This will also leave behind a decent $5000 in your
savings account which could be enough for any financial emergencies.
Think of it this way. If you leave the $12000
in your savings account, you will be earning a 3-4% interest rate.
However, if you leave the $15000 debt as it is, you will be paying
an annual APR of 20%! Now which is better? Would you like to earn
a meager 3-4% interest rate and pay out 20% of annual interest
charges?
If all of this fails, the last option is a bad
credit debt consolidation loan.
