Can I get a Debt Consolidation Loan if I have a Bankruptcy on My record?
<p data-sp-element=”content”>Filing for bankruptcy is one of the hardest things a person can do, and one of the main reasons for this is the long term consequences that come along with filing. One of the biggest hassles that filers have to deal with for years afterwards are the problems that come up every time they try to apply for a loan. A lot of times, their application is automatically rejected, and when they can get a loan of credit card, the interest rate is ridiculously high.For this reason, many people with a bankruptcy on their record assume that they won’t be able to qualify for a debt consolidation loan. In fact, these loans are designed to help people with debt problems, so it’s common for applicants to have bankruptcies, foreclosures, and other issues on their credit report when they apply.If you’re stuck paying high interest rates because of a bankruptcy that happened several years ago, then debt consolidation may be the answer to your problems. These loans replace all of your existing debt with a single loan with a low interest rate. That means you’ll be able to pay off your debt a lot faster and pay less every month to do it.Because you’ll work with a debt counselor in order to qualify for the loan, it’s possible to get a much lower interest rate than the penalty or high-risk rates that you’re currently paying on your debt. Furthermore, your debt counselor will help you to develop a budget so that you won’t be in a position to collect more debt after you go through the consolidation process.If you can’t make the minimum payments on your current debt, debt consolidation is a much better choice than going through bankruptcy again. The process is completely confidential; your family, friends, and business associates will have no idea that you’re getting a debt consolidation loan unless you tell them. Paying off all of your high interest debt may also help your credit score in some cases. You’ll come out of debt consolidation with more money every month, a better credit score, and a lot less stress.