Personal Loans with Bad Credit and No Collateral

Personal Loans with Bad Credit and No Collateral

Right now times are really tough and a lot of people are finding themselves without the money necessary to pay off debts and keep their bills current. Because of this more and more people are seeking loans. The trouble is the banks are all a little reluctant to lend money right now, especially to those with poor credit. Of course poor credit is something that goes with the territory when you are looking at a failing economy so there are also a good number of people who are struggling with credit issues. This leaves many questioning how to get personal loans with bad credit and no collateral. For anyone struggling with debt the first thing that is often suggested is that he/she look into some kind of debt counseling to try and get some of the outstanding collection accounts cleared thereby helping to improve FICO credit score [How to Improve Credit Score].

If personal loans with bad credit and no collateral are being sought to help consolidate debt then a high interest rate attached to these loans may be inevitable. Debt consolidation loans are good in one way and that is that they help to provide a clean slate but in another way they are not ideal. Personal loans with bad credit and no collateral that are being used to lump a lot of loans into just one will wipe away the original debt that much is true. However, this practice starts a fresh loan which extends the amount of time you owe money. For example, if you have a 15 year mortgage and have been paying on it for 7 years you would have only 8 years left to pay on it but if you consolidate this loan into a brand new loan that is amortized over a period of 20 years this starts the process all over again.

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