We're experts at dealing with bad credit and free advice on debt loans and money advice as a registered money advice charity in the UK.
When debts are mounting and money problems seem to be caving in, what options are there? A debt loan can be one way to deal with debt, but if you have a bad credit what are your options? Who will lend you money and at what interest rate?
Take a deep breath and don't panic. It's important to take things step by step.
Option 1: Get a loan to deal with bad debt?
To help get a loan for bad credit follow our step by step plan.
Step 1: If you have applied for credit before but been rejected, do you definitely know it's because of your credit rating? If not, then get your 30 day free credit report trial from Creditexpert.com. This will tell you what your credit score is. Make sure everything on your credit report is accurate as errors could be stopping you getting a loan.
Step 2: Next, ask yourself what you need the loan for and how much you need. If you need the loan because you are in debt, perhaps option 2 would be better, instead of a debt loan for bad credit. If you're debt free and you're rebuilding your credit history then step 3 could help.
Step 3: Visit a comparison website for available loans. Most comparison websites will have a range of credit available for different people. People with an excellent credit file will be offered credit at the lowest interest rate as they are the least risky.
Remember, credit at a high interest rate will mean it will be more costly to repay the loan. However, continual borrowing of credit and repaying the debt will improve your credit file over time.
Option 2: Get Debt Help to Deal With Bad Credit?
If you are in debt and would like a loan to deal with your debt, then this advice and support can be provided by Debt Support Trust. It can often be difficult to obtain credit with a bad credit file but we can explain your options.
You should check your credit file as it could hold information which is inaccurate and in turn is making obtaining a loan more difficult than it needs to be.
Debt Consolidation Loans
A popular solution to debt, especially for people struggling with interest rates and charges, was a debt consolidation loan. These debt consolidation loans would help somebody who was paying multiple rates of interest, pay one affordable monthly payment towards their debt every month. This meant their monthly contractual payments to debt were more affordable.
However, obtaining a credit loan when the debt problems are severe can be difficult. So we advise seeking professional debt help from a registered charity. A charity will explain if a debt consolidation loan could be possible or whether a debt solution would be required.
There are a number of debt solutions which could help a person become debt free and these should always be considered for people in debt and struggling financially. Some of the debt solutions will:
- Freeze interest and charges
- Allow for one monthly payment to one company
- Stop creditors from calling and demanding payment
- Help a person to be debt free after a certain amount of time
These benefits are similar to those benefits of a debt consolidation loan, in terms of helping a person make affordable payments and become debt free. However, with debt solutions there is no debt loan involved.
Charity Debt Loan Advice
At Debt Support Trust we are a registered debt advice charity. We give a wide range of debt and money advice. Most importantly, we want to help people become debt free and live a life without money worries.
The first step to become debt free for anybody is to call and ask about the debt solutions available. A friendly Debt Support Trust volunteer will help take down the necessary information to get the process started.
To call Debt Support Trust please telephone 0800 085 0226.