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Debt consolidation can ease some borrowers from the overwhelming burden of high-interest debt. It can also be a psychological victory if it gives borrowers a sense of control. However, borrowers with a fixed income may have trouble borrowing to consolidate their debt. This problem is exacerbated if the only income comes from government – such as Primary School Income Income or Disability Payments. If you enter into disability money and you need to consolidate debt, you need to work with a non-traditional lender Now!
Things you need
- Consolidate copies of accounts
- letter grant disability
- doctor letter
- Disability payment checks (stubs)
- Draw your credit before searching for the borrowers. A strong credit rating will go a long way when trying to convince a lender to take you as a credit risk. Visit your credit score on the score website for a free report. Also, pay for your credit score – a three-digit number that represents your total credit rating.
- Review all your earnings. It may just be your disability income comes in. However, you may have sources of income that you would not normally count as income -. Such as rent, maintenance, support child or Social Security payments. These revenue sources can often be used in calculating income. Collect all the documentation related to this.
- Think of any proven revenue you may have. This can be income from under-the-table (such as bar care or babysitting). Some borrowers have “no-doc” programs that allow you to simply add a small amount of income without verifying it.
- Start investigating borrowers. Stay away from local banks and credit unions no matter how strong your credit score and report is. These companies adhere to many cut-and-dried clients. Instead, reach out to finance companies. These institutions often finance clients who have unconventional income or credit conditions.
- Apply for two or three borrowers. A large amount of applications results in too many credit queries – which will start to drop your credit score. Give loan officers copies of all your income information. This will help them sort through what can be verified, which is consistent and stable and that can be used in computing income.
- Review all offers for debt consolidation. If you consolidate a strong credit and want to consolidate a lot of debt (which will significantly decrease your monthly expenses each month), some borrowers will do business with you.
Remember when consolidating an old loan, always choose the best company that you can trust on your new loan.