Consolidate my student loans – Where Do I Get Bad Credit Loans To Consolidate My Bills?

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Where Do I Get Bad Credit Loans To Consolidate My Bills?

If your credit rating has taken a beating, you may be struggling to pay the bills. Low credit scores are often accompanied by abruptly boosted interest rates, which lead to higher expenses. Debt consolidation is a great way to get a handle on your bills, even if you have bad credit. Are you wondering, “Where do I get bad credit loans to consolidate my bills?” Keep reading to find the answer.

Consolidate Credit Cards with Bad Credit

If you have a lot of debt on high interest credit cards, you have three choices to consolidate your bills: a credit card balance transfer, a home equity loan or home refinance, or a personal loan. A balance transfer will get you the lowest rate, but only temporarily. A personal loan will have a rate that’s lower than your current credit card interest rates for a longer term, but it may still be relatively high if you have a very low credit score. Contact your bank to ask about a personal loan. You may also receive offers in the mail. Carefully research the lender before agreeing to any offer you receive in the mail.

If you own a home, a home refinance or home equity loan is your best option. Because the loan is secured by your home, the interest rate is lower than you’d find with a credit card or personal loan. The rate won’t be the lowest possible, however, because those are reserved for borrowers with excellent credit. You may also find that the rate is lower if you have more equity in your home because it gives the bank a bigger financial cushion if you default.

Tax deductions are another advantage to home equity loans. Mortgage interest and most interest for home equity loans or lines of credit is tax deductible, which
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will free up a little extra cash for paying those bills.

Consolidate Student Loans with Bad Credit

If you need to consolidate federal student loans, you’re in luck. The federal government regulates the interest rates and consolidation rates. You will almost certainly qualify for a reasonable interest rate from any student loan consolidator. Start with your current lender, but contact a few others to see if their terms and discounts vary. Consolidating is more complicated with private loans, but it may still be possible. Contact your current lender for information, then search for lenders online. Ask a few for quotes before accepting an offer.

When it comes to student loans, you should avoid combining them with other debts or paying them off with a home equity loan or cash-out refinance. This is because most federal student loans are forgiven at death or permanent disability and can be deferred while you’re alive. You lose these benefits if you swap them for a different kind of debt.

If you have bad credit, consolidating your debt and bills is a great way to improve your credit history. By paying down debt, you also improve your financial future and your ability to qualify for better credit. No matter what your credit is like, you’ll be able to find someone who is willing to take a risk on you.

For more articles on Bill Consolidation visit: http://www.bills.com/consolidate-my-debt/

By: Justin narin

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About the Author:
Justin has 5 years of experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit www.Bills.com.

When you leave college with a bundle of student loans, you ask yourself, “How do I consolidate my student loans?” This is a question many people have about their loans from college.

Determine Eligibility

The first thing to do in the process of answering the question, How do I consolidate my student loans? is to determine if you qualify for loan consolidation.

You may qualify if you are finished with school or are enrolled half time or less. If you are still enrolled in school, you are not eligible for consolidation

If you are in the grace period for loan repayment – the time after you leave school but before loan payments begin – then you may also qualify for consolidation.

If you are already in the repayment period for your loans, then you must be current on all your loans, or you are not able to qualify for any consolidation program.

Determine Loan Type

There are two types of loans: Federal and Private. Federal student loans are provided by or guaranteed by the Federal government, while private loans were given by a private institution or semi-private institution like CitiBank or Sallie Mae.

Federal Loans have a variety of names and acronyms, but they’re all considered Federal. These include the common Stafford Loan, PLUS, SLS, Perkins and Direct Loans, among others.

Private Loans will not have acronyms, and will generate statements from the private lending institutions.

You’ll need to know which type you have because the type determines if you can consolidate and how.

Federal Student Loans

The question of how do I consolidate my student loans is easily answered for the Federal loans.

Do not try to consolidate private and federal loans together. For Federal loans, the fastest and easiest way to consolidate is by visiting the website http://www.loanconsolidation.ed.gov and beginning their paperwork process.

You can complete the entire process online, even using an electronic signature, for quick processing and answers on your consolidation. Interest rates on consolidation loans are capped at 8.25 percent.

Private Loans

With private loans, you are on your own to find an institution to consolidate them.

There are some advantages to consolidating private student loans, but if you have only or mostly private loans, the question you should ask may not be “How do I consolidate my student loans,” it may be “Should I consolidate my loans?”

Look carefully at loan terms and interest rates before you consolidate so that you can make that determination.

Ever wonder: how do I consolidate my student loans? If you are trying to consolidate student loans, visit our site now to learn how to start saving money today!

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