How Can I Get Out of Debt With Bad Credit?

If you have bad credit you could consolidate your debts with a debt consolidation loan. This involves you paying off some, or all of your existing debt with a new loan.

Debt consolidation could help you consolidate multiple monthly repayments into one monthly payment; this could make it easier to demonstrate a good repayment history, which should help improve your credit score.

Repaying one loan instead of many could also reduce the amount of interest you pay.

Secured loans for debt consolidation may give you a better chance of approval than unsecured loans if you have bad credit.

• Debt consolidation could allow you to pay off multiple debts – like credit cards.
• You will still have debt, but instead of owing multiple creditors, it will be all in one place.
• When paying off debts with a debt consolidation loan, you should prioritise debts that are newer first, or that have the highest interest rate.

Debt consolidation loans are often available to people with bad credit.

For example, secured loans for debt consolidation allow you to use a home or car as security on the loan. This reduces the risk to lenders, so they may be more likely to approve your application than an unsecured lender.