The Debts Elimination

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Bad Credit Debt ?

Have bad credit? Consolidation MAY NOT be the right option!

What is Bad Credit Debt Consolidation? There is no debt relief program called “bad credit debt consolidation“, it’s just “debt consolidation“. Thousand’s of consumers search for “bad credit debt consolidation” each month on Google. (synonyms: debt consolidation, credit card consolidation)

Today we will clear up any misconceptions around the term “bad credit debt consolidation” and it’s synonyms.

What is debt consolidation? Definition:

Debt consolidation is when a person takes out a loan, typically a loan that has a lower interest rate than their current debts. The new loan will be used to pay off a person’s existing debts, as a way of eliminating high interest loans and getting a single monthly payment. A person is then left with one new loan with a low interest rate and one single affordable payment. A lender must approve a person for these loans. Typically if a person’s credit score is low, or if they have a high debt to income ratio, they will not qualify for a debt consolidation loan.

Benefit of Debt Consolidation:

Can eliminate high interest accounts Eliminate multiple monthly payments May shorten the time-frame it takes to become debt freeDownside & what to Watch out for with Debt

Consolidation, especially if a person has a low credit score:

Don’t get scammed. If the bank denies you for a consolidation loan due to bad credit there is a reason for this. There are third-party lenders all over the internet who will approve candidates with a low credit score for debt consolidation. However, they may charge hidden and/or high fees, a high loan origination fee and high interest. Carefully read any contracts before signing on a debt consolidation loan application. Understand all fees and interest.

78% of people who take out a debt consolidation loan to payoff credit card debt end up back in debt, the debt grows back, as seen here on Dave Ramsey’s site.

Debt consolidation is not a fix. The debt will still exist. With other debt relief options you may receive a reduction in your debts. Take a look at credit card relief programs for 2016.

Did you get denied for a loan?

Do you have high interest on your credit card debt?

Or maybe you thought you had good credit, because you are current on all of your accounts, but due to a high debt-to-income-ratio, the banks denied you for a loan?

Usually when a person has bad credit, and searches for debt consolidation, they are looking for some type of credit card hardship program. Legitimate credit card hardship programs include debt settlement, debt validation, Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.

If your credit score is low, here are more realistic options over debt consolidation, to help with paying off unsecured debts!

Debt settlement services will allow you to pay off your unsecured debt in three-years or less on average, and have one comfortable monthly payment. A person must be behind on their account payments in order to effectively use a debt settlement service. Once you are behind on your payments for a long enough time, the banks will write off your alleged debt and sell it to a collection agency for around 10-20 cents on the dollar. We can then settle your debt for a significant amount less than the full amount owed!

Your credit score will usually go down in the beginning of the program. Your debt-to-income-ratio is basically how much debt you have, compared to your income, and this is the aspect of your credit that may have caused you to get denied for a consolidation loan if you recently applied for one.

Your debt-to-income ratio contributes to your credit score, and you want to have a low debt-to-income ratio, which debt settlement services will help you to obtain. However you may end up with late marks and collection marks on your credit at the end of a debt settlement program. You can rebuild your credit score after graduating a debt settlement program.

Some people notice a drastic decline in their credit score after joining on a debt settlement program, while other folks see very little negativity. Each case is different.

Debt settlement may be a good fit for you if you are already behind on your accounts, or if you are about to fall behind.


Banks will write off a debt after approximately 3-6 months of an account being in default, and then sell the debt to a collection agency for sometimes 10-20 cents on the dollar. When the bank sells your alleged debt to a collection agency, often violations will occur, or if you challenge the debt collector and force them to prove that they are abiding by all of the federal laws, and they can’t prove it due to missing documentation or inaccurate records, they may have to cease collection on that debt.

Bankruptcy is the worst option for your credit. Most lenders will either charge you the highest possible interest rate, or deny you for a loan in the future if they see bankruptcy on your credit. You may not even be able to get a job or rent a home due to bankruptcy being on your credit, and therefore it is important to try and avoid bankruptcy at all costs. At times, bankruptcy may be the best option to eliminate all of your debt including secured and unsecured debt.

Depending on what state you live in, your budget and entire financial situation, determines what debt relief option is best for you. If you are searching for bad credit debt consolidation, then you are at the right place, because here at Plan B Debt Services we will educate you on all of your debt relief options.

Plan B Debt Services will find you the best option to save the most money, and get out of debt in the quickest time-frame. We will work with you to improve your overall financial health, and truly help you to find the right solution.

We can facilitate a debt settlement, student loan relief and consumer credit counseling program. Simply call 1800 235 3167. Whatever your needs are, we can find you the right debt solution whether you have good or bad credit, need consolidation or settlement services!