Bad credit score indicates poor credit history and exhaustion of credit limit. When your monthly credit bills and loan instalments begin to hurt your savings and you find yourself under rubble of deep calculations to count the bills and outstanding principal of loan every day, it is time to change the equation of things. You need to consider some major decision as short term fixes cannot mend the mountain of debts. You may need to consider long term loans for bad credit to improve the quality of your life.
Availing long term loans with red flags in your credit report would not be less than a challenge. However a professional advice or credit counseling can rescue you. You may consider using free broking advice from one of the FCA authorised brokers. They work online and provide instant loan advice, tailor made for problem accounts and that too without charging a fees.
For a cash strapped person, a free advice is more than welcome.Anyone seeking special loans such as long term loans for unemployed people, or unsecured personal loans or bad credit wedding loans, can contact a loan broker online and request for exact match loans at affordable rate of interest.
Debt consolidation loan
Debt consolidation is a time tested tool to deal with a pile of debts. You can consolidate all of your loans into a single personal loan or a loan against property. Based on your requirements, the broker would help you search one.
Herein before you lay down your requirements to the broker make note of following points.
If you opt for unsecured loans such as long term loans for bad credit situation, the rate of interest would be higher than the one against the long term loans against a home equity. However in the latter case, if you fail to repay loan, you would risk the ownership of your property. Make final decision after a complete thought out.
Do your homework before seeking the loan advice. Make sum of all the outstanding debts to know how much you want to borrow. Highlight the small loans with high interest rate. You can also mark loans with very short balances. Consider the repayment of these small loans and deduct this amount from the total. This would give you a ball park figure to avail a debt consolidation loan. Closing of accounts would immediately boost your credit score.
Now calculate the average rate of interest for the new loan. You can make a total of all the interest rate and take an average. When you apply for long term loan, you can negotiate to avail anything below this rate.
You need to ensure that the loan instalment is affordable one. Never avail a long term loan wherein you are not comfortable to pay a monthly instalment.
As you successfully repay the loan instalments every month, you would build good history. Bad history can never be erased from your credit report. But with the new history, bad history would soon become a forgotten history!
Being a long term planning it would entail a lot of patience and persistence for the success of this debt management plan. You need to always work diligently to make it a reality.