Can anything prevent me from getting a debt consolidation loan?
Debt consolidation loans are great financial tools that can really help people who need to get rid of the debt they have without resorting to extreme measures such as bankruptcy. A lot of people who have been disappointed by loans from other lenders, who have mistakes on their credit history, or people with very little familiarity with these loans tend to assume that they probably won’t qualify. Often, this means that they won’t even try to apply.
The truth is that there are very few things that could completely disqualify a person from getting a debt consolidation loan. The reason for this is that the application process is different from any other loan. The main reason for this is that everyone who goes through the application process must work with a debt counselor.
Debt counseling is a process in which a financial professional reviews the debts, income, and assets of a client and works to come up with a new budget and spending plan. This is a collaborative process; the debt counselor works with you to come up with a plan that includes enough money for bills, debt repayment, and living expenses. Multiple studies have shown that the debt counseling process is very successful. Even people with past bankruptcies, foreclosures, repossessions, returned checks, and other credit issues are able to go through debt counseling and start to fix their financial lives.
Because the program is so successful, many lenders are willing to take a chance on people who go through the program that they otherwise would never have considered for a loan. This means that people who have been denied jut about every other type of loan and credit can usually get a debt consolidation loan.
It is important to remember that in order to get a loan, you have to complete debt counseling. People who can’t finish the process cannot qualify for a loan. Fortunately, the process isn’t difficult. Debt counselors are able to work with people who are in all different types of financial situations. It’s very common for their clients to have never spoken to a financial professional before in their lives, and they’re very experienced with helping people who are new to counseling.