Marriage is one thing, but the divorce rate for happily married couples is quite high right now. No matter what happens, your capital and credit are both at risk when you and your spouse split up. Everyone gets married and thinks Life will be grand and they will live happily ever after, no one ever gets married with the intention of getting divorced.
However, when you have what most lenders consider to be a bad credit score – one under 600 – you face a very different lending situation indeed. In this case, your low credit score could make it almost impossible to qualify for a personal loan – at least when applying to most lenders. In this case, you will need to take special steps in order to not only qualify for a personal loan – but to get approved fast and at a low rate.
Use your favorite search engine and look for the term “debt consolidation.” You will see that there are thousands of web links to companies offering loans to people with bad credit.
What most people do when they consolidate their debt is really just moving their debt around, so you take your credit card debts, your car loans, your personal loans no credit check, your overdraft lines of credit, all your different debts, mostly non-tax-deductible debts, and combine them with your mortgage. Now there are certainly some advantages here. You’ll usually get a lower rate than those other debts, lower monthly payments and of course the fact that the mortgage is most likely tax-deductible.
Do not confuse debt counseling and debt relief. They are usually two different things. Debt relief is when people work with your creditors to get your debt paid off, and some even offer loans to pay it off, and then you pay them off. Some are for profit and some are non-profit. Debt counseling, on the other hand, should be just about teaching you how to manage your money so that your debt problems do not get worse, or so that you can remain debt free after you have gone through debt relief programs. Some companies offer both.
If you have excellent credit then you should get a correspondingly good rate. This is not always the case. You see, a loan is like any other good you buy in a shop; the vendor may try to get you to buy a pricier product. In the case of loans, this means a higher interest rate, additional insurance, or fees. And maybe life or health insurance on top of that. He knows you’ll likely not be ‘shopping’ with him again, so this may be his one-and-only chance to get as much out of you as possible.
Most bankruptcy lawyers will offer free initial bankruptcy consultations with no obligations. Take advantage of this opportunity to find one you feel comfortable with and feel will treat your case with the care you’re entitled to. If you have already followed the first three points, when you go into see the bankruptcy lawyer you will be able to get a feel for his level of competence and commitment as he reviews your case. Don’t be afraid to shop around, selecting a lawyer is the most important part of the pre-filing process.