Debt Consolidation Loans Bad Credit
Will consolidating your loans really save you money?
With debt consolidation loans bad credit histories mean higher APRs, but that doesn't mean that such loans can't still save you money. While bad credit loans tend to be more expensive than loans for other kinds of customers, they're still much cheaper than other forms of borrowing such as store cards.
When it comes to debt consolidation loans bad credit histories usually mean higher interest rates – so your loan is likely to be more expensive than the bargain basement products offered by mainstream lenders. However, depending on the kind of debt you want to consolidate, you can still save a great deal of money.
With debt consolidation loans bad credit history will mean you'll pay an APR that's a few percent higher than the best buy loans on the market, but the APR is likely to be tiny compared to the cost of borrowing on store cards: even at 10% or 12% APR, a loan is much cheaper than borrowing with store cards that charge up to – or in some cases, even more than – 29% APR. If you've run up a balance on a few store cards you're probably paying huge sums of cash in interest payments, so replacing the cards with a consolidation loan is a very good idea.
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