Question: My brother has poor credit and needs to get a loan to consolidate his debts. He has a $10,000 car loan along with student loans that he would like to pay off by getting a personal loan. What would you suggest? He has already been turned down by his bank.
Debt Consolidation Not Your Only Option
When you have poor credit, it is not easy to get a debt consolidation loan. Some lenders will give a bad credit debt consolidation loan, but you pay a very high interest rate, probably higher than what he is already paying on his existing loans.
If his bank has already turned him down, it is likely that other lenders will also turn him down, so it may be time to consider other debt relief alternatives. If you cannot make the currently monthly payments on your outstanding debt, or are only making the minimum payments, it may be time to consider debt elimination alternatives such as a consumer proposal.
Dealing with debts and poor credit is frustrating and can be hard to correct without expert advice. Contact an advisor today, they can help you review your options and find the right alternative.