Debt consolidation is an extremely popular choice for individuals with large amounts of debt owed to multiple credit cards and loans. Debt consolidation usually consists of loan approval processes so those who have bad credit often have a difficult time getting approval. However, there are Calgary companies that offer debt consolidation services to help those who have poor credit.
Transfer Credit Card Balances
Review the available credit and interest rates for all active cards. Make a list of every card with their current debt amounts and interest rates. The simplest way to consolidate your debt and save money is to transferring the balance of credit cards which have high interest rates to higher credit limit cards with lower interest rates. This causes the amount owed to decrease and only one, individual payment will be due every month.
Borrow From Credit Unions And Employers
Find out if you can secure personal loans from your credit union or employer. Credit unions will occasionally offer personal credit consolidation solutions to those who have bad credit if direct payments are made from your paychecks. These options usually provide low interest loans which you can use in order to pay back the credit card debts with high interest.
Use Home Equity
Use your home equity in order to take out loans to pay back the credit cards with high interest. Having equity is somewhat rare these days due to the condition of the housing market, but if you are able to qualify you will be lower your monthly payments since these types of home equity debt consolidation loans may be held for a maximum of 30 years. Home owners should make sure they are comfortable with the terms of this loan, as late payments could result in the loss of the property.
Use Vehicle Equity
Another way to get debt consolidation loans for those who have poor credit is to borrow against a vehicle you own. Credit unions and banks loan money to individuals who own their vehicles. A percentage of your cars value may be borrowed. The amount youre able to borrow is dependent on the vehicles year.