The mountain of debts is building on. That is why; you applied for the debt consolidation loan, but the application has been turned down. It is a very frustrating phenomenon because you are unable to pay off mounting debts. Consolidation loans are blessings if one knows how to get them approved. It enables a debtor to return lending money and get financial stability.
You need to sort out the causes of consolidation debt declination.
Identify the Reasons
There must be genuine reasons for your rejection of debt consolidation. Otherwise, debt lenders are happy to give not only loans but also multiple incentives to the borrowers. It is their business to make money. Identify these mistakes so you may not repeat them in the future. The knowledge will let you understand your position and give you closure.
Low Credit Score
A credit score is the index of one’s soundness. Lenders use a parameter before giving their money. They assess either you could repay the loans or not. It becomes difficult to get the consolidation loans if you have a poor credit score. Nevertheless, it is not a rule of thumb.
It is a fact that no one can improve the credit score overnight. You might get the loans with poor credit score, but it comes with a big interest. It will damage your financial position instead of giving benefits.
High Volume of Debts
Debt consolidation lender also takes into account the volume of your debts. They do not offer a personal loan to each applicant. They may not give you more loan if you are already struggling with the previous debts. Mention it in application or conversation that you need consolidation debt to pay off loans. It could make a difference. IVA help & advice can prove very beneficial for the debtors who need further money to settle the financial problems. It will set you in the right direction to get financial freedom.
Low Income
Low income is the leading cause of the debt consolidation decline. The lenders do not only believe in your words, but they check your monthly income, job, financial condition, etc. to approve the loan. They would not like to make any agreement if you do not fulfill their expectations. They take into consideration the expected loan and your current income. You may get a small amount, but it will not address your issues.
How to Survive without Debt Consolidation?
It is time to prepare the budget to confront the hard times. Prepare a spreadsheet, write down the monthly income, guess where you may earn money, and reduce your extra expenses. You do not have multiple options to use the available money. Build a habit to survive without credit cards and begin to save money. Begin to pay off loans strategically. The suggested techniques will help you solve the financial crisis.
You may do hourly jobs, offer services of product delivery, wash cars, or work on the grocery store for a few hours. Debt management is a fine solution to pay off loans instead of getting further debts.
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May 29th, 2019 by financetwitter
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