Have you been in a situation where you cannot get a loan because of bad credit or if you do the interest rate offered is ridiculous? Having a bad credit history is bad news to most financial institutions, and you can often feel stuck with havinga bad rep for the wrong decisions you made in your past. You are not alone and you are not the only one struggling either.
When you look at the fact the average Australian has more than one credit card tacked onto a series of other debts financial woes become easier to pinpoint. Statistics show over 100,000 Australians have had their debts consolidated over the past year or so to try and resolve their debt crisis. Having bad credit may mean your options are limited but it doesn’t mean you are unable to find a solution to get rid of your debts. Let’s take a look at what is required for those who seek debt helpwhile having bad credit history on record.Particularly ifyouare one of those people who have bad credit and are currently struggling to pay off thosedebts.
- Talk to your bank
It is common to see people rush to the bank to acquire another loan to deal with their debts. This may not be the right approach for everyone. If you are struggling with your repayments the first step should be to talk to your bank and find out what options are available to you. Financial institutions such as banks provide hardship options to help people through tough times they may be experiencing. Hardship is useful for short term debt problems such as job loss.
Longer term debt management solutions may be required after hardship, if your situation has not turned around and you are still unable to pay your debts. At this time youmay need to seek professional assistance to determine the right solution for your situation debt management solutions like Debt Agreements and Informal Arrangements can provide the longer term relief needed
- Understand that asking for help is a positive step
When your situation is spiraling it is always better to take proactive action early. Always ensure that you pay something towards your debts no matter how small as it gives you more leverage when you need to negotiate.ar too many people with bad credit are unaware that there are manydebt help options available such as a debt agreement. They believe the only alternative they have is paying the entire lump sum or declaringbankruptcy. However, this is not always the best approach, particularly if you have assets like a house or car. Other alternative solutions such as a debt agreement, allows the option of freezing interest and consolidating allall unsecured debts from all creditors into one repayment plan to pay back the debts. Taking the step and reaching out for assistance with your debts from a professional company is a good place to start when your short term solutions no longer work for you and your situation.When it comes to your credit file sometimes taking a longer term perspective is required, taking a hit on your credit file now can help relieve your situation and stress and set you up for being able to resolve your credit reputation into the future. But seek advice from a professional.
- Be Selective if looking for New Loans or Debt Help
One thing you need to be aware of is that all credit requests are recorded on your credit file. This does affect your credit seeking ability. Make sure your initial enquiries are off the record. In addition, always remember, it might appear as if you are at a disadvantage in the market when you begin to search for the right provider, particularly if you are credit impaired. But this is anincorrect way of looking at things. Remember, these companies will be setting an interest rate from which they earn money on debts of this nature. You are essentially an incoming business for them.
Make sure you remain on top in all negotiations and don’t fret while locating the lower interest rate on the market. You should always be doing your research. If, you can’t get a good rate on your own, consider seeking help from a specialist brokeror if you are seeking assistance to get out of debt it may be worth gettinghelp from a professional debt management agency, now is the time to do it and don’t hesitate. You’d be glad when you did and the more delays there are, the more your debts are going to pile up. Think about the interests your debt accrues every day and every month whenever your payment gets delayed. The more you procrastinate, the more it piles up, so the best would really be to seek the right help to get you out of debt and your credit file back on track
If after you have attempted to tackle your debts on your own, but still find yourself struggling a professional agency might be the best place to go for assistance. They can help you with strategies for tackling your debts as well as providing you with several options like adebt agreement, debt consolidation or other forms of debt settlements.