Bad Credit Debt Consolidation

Bad credit debt consolidation loans works in the same way as regular debt consolidation loans. A bad credit debt consolidation loan allows people with bad credit and overwhelming debt to consolidate their finances into one easy loan. This means that instead of paying multiple credit repayments each month, an individual with bad credit can simply pay one monthly repayment, giving them more financial control and a heightened ability to pay back their debts.

Even better, bad credit debt consolidation loans may allow you to secure a lower interest rate than the combined rates of your current debts. This has the potential to save you hundreds of dollars each month!

If you need debt consolidation loans for bad credit, the friendly team at the Australian Lending Centre can give you the information you need to see if one of our bad credit debt consolidation loans is right for you. 

There are a number of different forms of bad credit loans, including bad credit debt consolidation. This type of finance can not only combine all of your debts into one manageable one with lower rates, but also can improve your credit score over time.

Letting your debt build up can seem fine at first and many people manage by paying the minimum payment each month on credit cards. However, as time goes by your finances will become more and more stretched until something has to give. Making minimal repayments each month not only prolongs your debt and makes the total amount owed higher, it also harms your credit score.

Making minimal repayments, the total amount owed will always remain high, which means you have a high credit utilisation ratio. Experts suggest keeping your credit utilisation ratio lower than 30% can benefit your credit score, while a ratio of 31% or more can damage it. A credit utilisation ratio is the amount that you currently owe compared to the total loan amount. So, if your total loan amount is $1,000 and you still owe $300, then you would have a credit utilisation ratio of 30%. Put simply, credit utilisation ratio= loan amount still owed / total loan amount.

When you enter into a bad credit debt consolidation agreement, the sum of all of your current debts is paid off which reflects greatly on your credit file as your credit utilisation ratio will drop to 0%. So long as you keep up with your debt consolidation repayments then your credit score will only go up.

Not only can you benefit from an improved credit score with bad credit debt consolidation, but you can also simplify your life and save money too. Having just 1 repayment to make each month is a lot easier and less stressful than having to make multiple repayments to different creditors. As well as this, you will have a fixed repayment amount so you know exactly how much you need to pay each month and when. On top of this, bad credit debt consolidation can often provide you with a more favourable interest rate.

Clearing multiple debts with a bad credit debt consolidation loan could help improve your credit rating for the future. Through bad credit debt consolidation loans, you could lower the risk of multiple defaults and could also reduce the number of unpaid debts to your name. Even better, when you consolidate bad credit and successfully pay off your loan could help rebuild your credit rating, giving you more financial freedom in the future.

You don’t need to struggle with multiple debts. Consolidate bad debt with Australian Lending Centre’s bad credit debt consolidation loans. Call us today.

If you are spending beyond your means and allowing your debt to pile up it can be very easy to fall into late payments, defaults and even court judgements. All of which lead to a bad credit score. This is the point at which most people tend to bury their head in the sand and try to hide from mounting debt, constant phone calls and demanding letters from creditors, all wanting money that you just don’t have. For some people, this is overwhelming, stressful and can appear to be unsolvable, but with a bad credit debt consolidation loan and some serious budgeting, you can find the light at the end of the tunnel.

If you have bad credit then you have 3 main options to receive finance:

• Wait up to 5 years for your bad credit rating to clear itself
• Pay professionals to repair your credit file
• Apply for a bad credit loan.