The Easiest Alternatives to Credit Card Consolidation Loans
Many people are told that getting credit card consolidation loans is the better way to consolidate debt. The only problem with that is there are many people in debt who won’t be able to qualify for this loan.
Most of the time, the reason they don’t qualify is because their credit took a hit when they got in financial trouble initially. So what do you do to consolidate when you can’t get this kind of loan?
This article explains your alternatives to credit card consolidation loans and how you can go about applying for them.
When you can’t get out of debt yourself and you really want the help of a third party company, you basically have 2 options…
- Sign Up with a Non-Traditional Debt Consolidation Company
- Repair Your Credit, then Apply for the Loan Again
This article explains each option in more detail, so you can make an informed decision on which one to choose.
Let’s get started.
Fast Substitute for Credit Card Consolidation Loans
The easiest route to go when you can’t get debt consolidation loans is to sign up with a non-traditional debt reduction firm.
You basically use a form of debt reduction known as debt relief.
How does it work?
Since you don’t qualify for a loan, you can sign up with a debt settlement company. With these companies, you don’t need to qualify for a loan.
What these firms do is they negotiate with your creditors to try and get you better terms on your debt. You don’t need great credit to get approved for this option. That’s why so many people go this route.
If you want to get rid of a lot of the worry and anxiety that comes along with debt, then this solution might serve you well.
It’s a lot easier to qualify for this kind of service and it’s a fast approval process too. However, in many cases, you will need to have a certain amount of debt to get approved for the company’s program.
Debt relief companies should only be considered when you don’t have another option and you can’t get out of debt on your own.
You need to use caution here.
You can take a look at our list of the better firms.
Repair Credit then Get a Credit Card Debt Consolidation Loan
You might want to try this one first instead of second. By repairing your credit and boosting your credit score, you increase the chances of getting approved for a credit consolidation loan.
But how do you do it and how exactly does it work.
You have two options. You can either do it yourself or have another company do it for you.
A professional credit repair service works to remove negative items from credit reports. These include late payments, foreclosures, liens, repossessions, and more.
By removing negative items, your score will increase and you’ll be well on your way. Naturally, this process takes time.
Professional credit repair, will dispute specific items in your credit report, working directly with credit bureaus.
Better credit can lower your interest rates for credit card debt consolidation loans, and it can reduce your interest rates on mortgages as well. When your credit is better, you can qualify for higher amounts of credit and bigger loans.
In addition to loans, better credit can do other things such as improve employment opportunities and non-tangible benefits such as enhance peace of mind, improve marriages and make life easier. You’ll sleep a little better at night.
The kind of credit repair company you choose is essential. Working with a company that is not professional and legitimate can do you more harm than good. So finding the right firm is the most important part in succeeding with this.
Always investigate a company with the Better Business Bureau which will contain complaints about any credit repair company. Avoid companies that charge a hefty upfront fee. And read some of the reviews and news stories written about the company online.
Sacrifices to Make with Credit Card Consolidation
The most dangerous thing about sliding into debt is that it’s such a slow, comfortable trip.
Sure, the bills get bigger and paying them gets harder, but you’ve using credit cards and paying off a car loan since you got out of college.
Isn’t that just the way life works now? Well, it doesn’t have to be!
And you don’t have to rely on credit card consolidation loans to bail you out. Yes, it’s good to know you have that option if needed, but you shouldn’t rely on that.
By simply getting and staying out of debt, you improve your lifestyle dramatically.
Sometimes, it’s frightening to start down a new path, but we promise you:
In this case, the rewards are worth it. And once you get a little taste of the rewards, you’ll want to keep moving forward until you’re completely done with debt.
So let’s be completely honest: It’s impossible to get out of debt without curtailing your spending, and that means doing without some things you’re used to.
But for a lot of people on the debt treadmill, the idea of living without cable or only eating at a restaurant once a month is positively unthinkable. It’s a sacrifice they don’t think they can make.
They see credit card debt consolidation loans as something that will always be there to get them out of a financial jam. So they continue paying for things that put them in a deeper financial hole.
They don’t realize that these momentary pleasures are robbing them of a sound financial future.
The kinds of sacrifices necessary to break the debt cycle aren’t permanent.
So what are you willing to do without until you find your way back to solid ground? It’s not as difficult as you think. Try sacrificing for a couple of weeks. You’ll be surprised at how much you save.