Consolidating school loans with bad credit

Cosigning a student loan on behalf of an incoming or current college student can be a risky decision.Not to mention, not all parents are able to cosign a student loan on behalf of their child.You’ll work with a credit counsellor who will negotiate with your creditors to reduce your interest rates and payment amounts.You’re still paying back your debt and you’re technically not consolidating your debt, but it’s another great form of debt relief.While every debt consolidation option has its own unique effect on your credit rating there are a few positive effects you can look forward too: If you handle debt consolidation appropriately and responsibly, the long-term effect on your credit score and report should be more positive than negative.Trying to cut corners or ignoring the issues at hand will end up doing more harm than good.Also, make sure that the low-interest rate you thought you were getting doesn’t end after a short introductory period.

An Alternative lender will work with you to help you get back on track; just make sure you choose a reputable lender.One of the best things about a debt management program is that your credit score isn’t taken into consideration so if you have an extremely low score you can still get the help you need and want.This completely depends on where you are financially before you enter a debt management program.But you’ll also be given an R7 credit rating that will last for the following 3 years.An R7 credit rating will show up on your report as “making regular payments through a special arrangement to settle your debts”.

Leave a Reply