[Oh hi- I think it’s always a good idea to read my disclaimer-Ed.]
Debt is just a four-letter word, yet its significance makes it as big a word as any. It became widespread throughout the world when the financial crisis struck a few years ago; Wall Street had not seen it coming so how can the ordinary person anticipate it. The repercussions were misery across the board. Many people lost their jobs, a huge number lost their homes and there seemed no obvious solution as month after month there was bad news. During that period, which thankfully has finally ended, an increasing proposition of the population saw their credit scores fall as a result of defaults that harmed their credit histories.
There is plenty of advice available for those in trouble. Government agencies are there to help, educate and advise those in trouble. It may be help to show people how to devise a budget and how just as importantly to stick with it. The last resort is bankruptcy because that remains on a credit history for ten years making it extremely difficult to obtain credit and even at times providing a hindrance when applying for a job. On the surface it may seem the easy way out to stop all the calls and letters from debt collectors. Perhaps that ten-year statistic shows that it isn’t?
It is not rocket science to realize that it is difficult to make progress out of a serious financial situation without regular income. Anyone that has returned to full time employment after getting into financial difficulties can start to look for solutions to existing debt problems and a consolidation loan is certainly something needing close examination. Consolidation means gathering together all debts such as credit cards, current loans if they exist, and taking out a loan to pay them all off. For example credit card debt is expensive. The interest rate applied to an outstanding balance at the end of each month is penal. If the minimum required is paid each month, the balance hardly reduces; it will stay there and incur those penal charges every month.
The question is where to get the consolidation loan. Traditional financial institutions are unlikely to approve any application from someone with a poor credit score. They have had enough of potentially toxic debt prior to the crisis. There is a solution and that is the new breed of online lender that takes a far different view of what makes a good applicant and it is not an historical one.
Online lenders have set up websites explaining the offers they have prepared and the process required to make an application. The details are perfectly clear and the application process quick and simple. Their logic is that if an applicant can show a regular income and the monthly instalment repayments that would be required against a specific loan are affordable then the applicant should be successful. There may be a slightly higher interest rate applied to a loan given to someone with a poor credit history but history alone is never a reason for refusal.
The word should spread
This may not be common knowledge but hopefully the word will spread because there are still significant numbers of people in need of help. It costs nothing for anyone to do their research if they have a meaningful monthly income and can make out a case for help. Online lenders allow applicants to fill in a simple form and send it by email. As a rule the details required are basic ones of identity, income and bank. The whole process is also very quick with decisions made quickly and funds released within hours in virtually every case.
Some may think this is all too good to be true; well it isn’t! Many people had lived a very responsible financial life before the crisis struck. Online lenders will argue that there is no reason why they should not aim to do so again. They may need a little help and online lenders realize that there is profit to be made by doing so. It costs nothing for anyone to go online and investigate. There is no obligation until an agreement is signed. It could just be the way out of that nasty little four-letter word.