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So even if you get approved for a loan, you could end up paying more in interest and fees than someone with better credit.
So whether you are approved for a loan at a high interest rate, or you get turned down because of your credit, remember there are plenty of other options for debt consolidation loans for bad credit.
You use the loan to pay off all of your credit cards.
Then, while you're making monthly payments on the loan, you start to use those zero-balance credit cards again to charge new purchases. A new loan to consolidate credit card debt you just accumulated may not be possible, because the more debt you have has a negative impact on your credit rating.
Over the next few years, Anne experienced a number of financial set-backs.
She opened another credit card to help pay for a major car repair ($1500) and another to cover expenses when her roommate moved out with no notice ($2500). As a teacher, she thought she had job security, but her state had a budget crisis and teachers with little seniority were the first to go.
The best way to consolidate credit card debt under $3,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.