Bad Credit Debt Consolidation - Brutally Honest Advice

Posted by Steve Rhode

October 27, 2008

I could not help but notice the huge numbers of people searching for information for bad credit debt consolidation information. The phrase is almost an invitation for a bad outcome or maybe just an oxymoron.

When you have bad credit it is not an invitation for a debt consolidation loan from a debt consolidation firm. People that lend money are not hunting down people with bad credit to lend to. A bad credit debt consolidation loan just isn’t a real debt solution to eliminate credit card debt. It does not happen and those people with bad credit that think they are actually going to get a bad credit debt consolidation loan are just begging to be scammed. Honestly.

What people often confuse as a debt consolidation loan when they have bad credit, are credit & debt counseling services. Credit counseling or debt management is not a loan. Even though you make one payment each month to the credit counseling group, they are not lending you money. No government, no charity and no person in their right mind would or is going to lend money to anyone with bad credit who is looking for a debt consolidation loan.

Let me me as perfectly clear as I possibly can, if you have bad credit and a bad credit score and you are holding out hope looking for a debt consolidation loan as a debt solution you are not being realistic. It will not happen.

There are only three ways to do a fake debt consolidation in that situation:

Debt Settlement - Where your bills go way past due and you make one payment to a debt settlement company and eventually they will deal with your creditors and settle your debt for less.
Debt Management - Where, as I explained above, you send one payment, but it is not a loan. The credit counseling group chops up your single payment and sends it off to your individual creditors.
Chapter 13 Bankruptcy - This is the payment plan type of bankruptcy. You’ll make a monthly payment to the bankruptcy trustee and whatever you have not been able to pay by the end of your three to five year payment plan, will be wiped off.

Here is the easy way to people who are looking for those elusive bad credit debt consolidation loans. What you will be promised is that no matter what your credit score or how bad your credit, for a fee paid in advance, you will be eligible for a loan to payoff all your debt.

You will be asked to send a payment for the loan in advance as a processing or application fee. You may get papers to complete for your debt consolidation loan and you will be asked to send them in. But rest assured, you will not get the loan.

Source: Bad Credit Debt Consolidation - Brutally Honest Advice

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