credit cards are full, the interest payments are severely
limiting your lifestyle and you just can't seem to make a
dent in your debt load. You need to consolidate or otherwise
make some changes, or it's going to go from bad to worse in
short order. So you approach the bank - and they deny your
application. It's very frustrating, but you do have options
- as this article explains...
say you are trying to find a lender who is willing to offer
you a unsecured debt consolidation loan. But the banks say
. Citi says NO
Wells Fargo wont take
a flyer on you. So what do you do now ?
with the current financial situation and the ongoing credit
crisis its just getting tougher and tougher to qualify
for a debt consolidation loan. So if all youre hearing
is no, you are left with the following options:
you could simply not get a debt consolidation loan. Make
a budget and itemize all your debts and prioritize them for
repayments. In order to be successful you will need to cut
your expenses and start forgoing the extras and living well
within your means, thats the only way youre going
to be able to pay down your debt on your own. I know it sounds
difficult but in todays world that is often the best
solution and at the end of the most cost effective.
you could pay some of your debts on your own, and then
try again in six months to a year to get a consolidation loan
to take care of whats left. This way when you do reapply
your overall debts are a lower, and your credit score more
than likely will have improved, hopefully enough to make a
difference. In addition provided youve not changed your
residence or job, this added stability will reflect positively
on your application.
instead of a debt consolidation loan you could try a debt
management plan, which is like a debt consolidation loan,
but there is no interest. A not for profit credit counsellor
can negotiate a repayment plan where you pay the debts in
full, but at a reduced interest rate.
option is a consumer proposal. This is when a licensed
professional administrator works out a plan with your creditors
whereby you wind up paying only a portion of your total debts.
At the end of the day many creditors are happy get a piece
of something rather than all of nothing.
fifth option would be to approach a family member or good
friend and borrow the funds from them. If you wind up
going this route its vital that you get everything in
writing so as to avoid any confusion down the road and above
all else make the payments, not doing so is a sure fire way
to strain a relationship! Dont be offended if youre
asked to pay interest, theyre not obligated to give
you free money.
all else fails, the final option is personal bankruptcy.
Get in touch with a bankruptcy lawyer and or trustee, set
up an appointment to go in and see them so you fully understand
the ramifications both short and long term of filing for bankruptcy.
good news here is that just because the bank says no, you
dont have to give up. There are other options out there
and more than likely one of them will work for you!