Any sound minded individual would not want to be buried in debt. Credit card interest rates can go as high as 36%, which will basically eat up our finances, and if we do not do anything about it now, we will simply continue to pay a ridiculous amount month after month without end. If you have outstanding credit card balances, the smart thing to do would be to get a personal loan in order to pay it off in full once and for all.
What options do you have?
Understand that a regular debt consolidation loan may not be the best answer to your financial woes. Although this may not be true for all, many so-called debt consolidators promise to put an end to your problems and yet later on, you would find yourself still buried in it. Promises of lowered interest rates and easily approved applications entice people to give it a try only to find themselves getting declined because of their poor credit standing, or in some cases, they get the green signal but end up paying more than what they used to.
What you can do is to take out a personal loan to pay off your debts. Apparently, because you are considered a credit risk due to poor rating, you cannot expect most lending companies to grant you a loan but there are those who can and who will.
There are short-term loans referred to as payday loans for cash advance loans but most likely, getting this would not be enough to pay off your credit card because you can only get as much as $1500.
Your best option is an unsecure personal loan that will enable you to borrow bigger sums, between $3,000-$100,00, payable up to five years. The amount would depend on your capacity to pay, reason for getting a loan, and credit worthiness. For those with poor credit, you should not expect to be granted a very large amount. Although this is still going to charge you high rates- 11% on average, this is definitely much lower than what credit card companies charge.
Check with your bank to see if they can grant you a personal loan. Or you may look for lenders online that can give you instant quotes. Compare rates and choose the one, which you think, will give you the best deal. When you are able to consolidate all your debts, you can work your way towards building a good credit.