Many people with bad credit tend to roll over and accept it. The fact is that debt can be overwhelming, it can seem completely insurmountable, so many debtors just sort of fold and say “Well, I have bad credit, so be it. What can they do, put me in jail?”
Well, your creditors probably won’t put you in jail, but the problem is that having bad credit severely limits your options in life. You see TV commercials all the time for car dealerships boasting “Bad credit? No problem!” but what they don’t tell you is that someone with bad credit is generally going to have to pay significantly more on interest rates to buy that new car than someone with good credit would.
The fact remains that having bad credit is like having a ball and chain around your ankle. If you want a business loan, if you want to buy a home, if you want to improve your financial standing in any way, shape or form, bad credit will always slow you down and stand in your way.
There’s no magic bullet to kill bad credit instantaneously. The only way you can fix bad credit is to pay off bad debt, and that’s the bottom line. Where debt consolidation comes in is that it makes bad credit much easier to get rid of than it would be if you were going it alone.
While it will still take a lot of work to pay your debts off entirely, using debt consolidation can at least make that task seem less overwhelming.
First, you can get a fixed rate for your interest, ensuring that, while you still have bad credit for the time being, at least it won’t get too much worse before it gets better.
Second, of course, is that you can negotiate for new terms regarding payment plans.
Thirdly, and most importantly, by lumping all of your debts together, you only have one loan to pay off, and this simply makes everything a lot easier to manage.