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Pay Off Debt, Get Out of Debt and Debt Help Solutions
Many people are finding it hard to meet their committments each week or month. The global financial crisis has caused many people to lose their jobs, but the bills still keep coming in.
Debt Management, or Debt Help is the first step you need to take to get out of debt and avoid things getting out of control. You need to know exactly what bills come in and when, and it helps to know the likely amount.
For many people who have a few personal loans and / or several credit cards, it would help to combine all of them into one lower monthly payment. You are looking for a Debt Consolidation Loan.
Many people do not realise the consequences of acting too late when facing debt. Your credit history is extremely valuable when applying for an unsecured loan, or a debt consolidation loan. A bad credit history prevents many people from getting a main stream lender to say YES to Credit Card Consolidation, and Bad Debt Consolidation Loans are very hard to obtain.
Your Credit file and credit score, especially in this economy is a major factor or loan assessment criteria lenders look at when they are making a decision whether to lend their money to you or not. The Banks and other main stream lenders such as finance companies, look at 6 aspects or criteria as described by Nigel Brookson in the 6 'C' of Credit Assessment.
Below you will also see a section on Debt Guides and Debt Help, where experts let you know what options are available to you when you are facing mounting debt. Act early as Bad Credit Debt Consolidation will not be easy.
Debt Management: Pay Off Debt with Debt Help
What is Debt Management?
Knowing and admitting you have a problem is the first step. You have to then take some positive action to fix the problem, before it gets to the stage of defaults on your credit file.
- Know what is on your Credit File. Get a copy so you know what you are dealing with
- Read the Debt Help advice on dealing with your situation, and your circumstances
- Apply to a lender for Debt Loans that deals with your type of situation, and your profile
- Keep to a strict budget. Treat savings like a bill, it's your way back
Debt Consolidation Loans
What are Debt Consolidation Loans?
Applying to Banks and mainstream lenders for personal loans to consolidate debt, should only be done if you understand the 'Buying' or lending criteria they have. Banks by nature are more conservative, and do not like risk that much, so Bad Debt Consolidation Loans are not something they will look at.
If you are wanting to approach a Bank for a Debt Consolidation Loan, you will have to consider the following criteria, and if you answer NO to any of these, chances are the Banks will too.
- Are you employed?
- Have the loans you wish to consolidate been paid on time for the last 6 months? Bad Credit Debt Consolidation is very hard to obtain.
- Have the credit cards you wish to consolidate been paid on time for the last 3 months? For Credit Card Consolidation you must keep under your limit and pay the minimum amount due each month.
- Do you have statements to prove this?
- Have you a 'Good Credit File' with NO defaults to lenders?
if you answered no to any of these, it is likely a Bank will say no your Debt Consolidation Loan as well.
Hope is not lost though. There are lenders in the market can help people with a Bad Credit Debt Consolidation, and on a Pension Consolidate Debt. See Payday Loans.
Debt Consequences and Bad Credit History
What are the consequences of having dedt?
Managable debt is ok, it's when you can not pay your bills on time that problems occur, and many people do not realise the impact that this will have on their financial future.
Not being able to pay on time firstly can cause a Bad Credit Rating. Just about every lender, and all main stream lenders will check your credit file, and if there are defaults with other lenders, they will often decline your application, saying "You don't meet our lending criteria".
Credit File
What is a Credit File?
Everyone who has made an application for credit has a credit file, and Lenders will look at it when you apply to Consolidate Debt.
Your Credit File will show the following information:
- Full names, addresses, employer/s, date of birth, drivers license details
- Applications for credit in the last 5 years
- Default information for last 5 years
- Bankruptcy information for last 7 years
- Writs and Summons issued
- Any Directorship / Propriatorship information
It is important that you know what is on your credit file BEFORE you apply to consolidate debt, as bad credit debt consolidation is often declined.
6 ‘C’ of Credit Assessment
How do Lenders Assess your Application?
Mainstream lenders such as Banks and Finance Companies, use a set of criteria, as described by Nigel Brookson called the 6 ‘C’ of Credit Assessment.
The following is a list of the 6 criteria.
- Capital - Is the Borrower Assest Backed
- Capacity - Can the Borrower afford the Repayments
- Credit - How does the Borrower's Credit File look
- Collateral - How does the Loan to Security Ratio (LSR) look
- Character - How stable is the Borrower at home and work
- Conditions - Outside Factors such as Police Warrants
Knowing what is on your Credit File, will assist you in making a better decision of who to apply to and when you try to pay off debt.
Debt Help to Get Out Of Debt, Pay Off Debt Fast
Read the Debt Help Advise given by Leading Finance Experts
Below are just some of the topics covered by our guides and debt Tips.
- What to do when a Bank says NO
- What to do when you have a Bad Credit History, and need a loan
- How to avoid debt
- How to Repair your Credit File
Debt Solutions
- Debt Consolidation
- Debt Management
- Credit File
- 6 'C' of Credit Assessment
- Bad Credit
- Loan Calculator
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