It is not a joke when we are hit by foreclosure proceedings. This signifies that we are on our knees financially. Life becomes more difficult to start anew because the creditors look at us with distrust. As our credit standing goes from bad to worse, we dread to face tomorrow as we know that our other payables will not stop knocking at our doors. We think of other urgent solutions before things get out of hand trying to find relief with debt consolidation for blacklisted people like us if we are lucky. We dream of settling all our outstanding obligations as a single loan at a lower interest rate.
It Is Costly
At first glance we feel that debt consolidation for blacklisted people is the perfect solution to pay off your overdue credit card bills, a car loan and a mortgage loan balance. This could be your line of thinking without even an attempt at negotiations with your creditors. Perhaps you just thought and were convinced by a debt consolidation consultant that your case is ripe for a debt consolidation program. You should ask more questions and do your homework. Remember that with a debt consolidation loan, you are not relieved of your loans. Instead you just roll your current debts into a new single account. While you may be attracted by a lower monthly payment as compared to what you’re paying presently, you must not overlook the fact that the term has been stretched. If you make a detailed computation of what you are about to pay, you’ll be surprised that you will have to pay a big amount of money just to get out of the present financial rut.
Think Of Other Options
Do not forget that debt consolidation is not the only solution to any financial difficulties. There are other options if you only are willing to sit down and think. You may consider the following alternative courses of action if applicable to your situation.
Sell some property.
Analyze the possibility of selling your car to settle other accounts. Perhaps your home can generate enough funds to settle all your present accounts and consider a second mortgage. If you have a second home, disposing of it is a great alternative to relieve you of too much pressure that you are presently undergoing.
Talk to your creditors.
You can always approach your lenders and propose some arrangements. Prepare a well-thought off business proposal regarding the settlement of your accounts. You can possibly strike out an extension of terms at acceptable rates.
Consolidate your credit cards
Study closely the features and interest provision of each credit card that you are using. Drop the card that charges you high interest and penalties. Reduce the number of cards you use and limit your borrowings to one or two cards only. It will not only save you time but money as well on interest and penalty charges.
Prepare and implement strict budgeting.
Devise a budget that is strictly limited to your needs only. Do not spend on things that you want but which are not necessary.
Try borrowing from friends.
Go and approach your friends and family members who are financially capable and seek personal loans from them. Do not attempt to borrow any cash from payday loan lenders. It will just complicate your financial problems because of the high interest instant cash loans carry. Personal loans with low interest rates can solve your problems only for a short period of time while negotiating for a loan with other creditors.
Do not lose hope and automatically resort to consolidation. You can start all over again if you are willing only to try other solutions and remain persistent about finding one.