Often, the most important solution to a bad credit situation in New York and New Jersey is some form of debt consolidation. Yet, with poor credit, finding a reasonable debt consolidation loan and some other obvious solutions can pose a real challenge. So what are some realistic options that are available?

Even with bad credit, you might be eligible for some types of loans, particularly if you have some assets that you could pledge as collateral. Autos you own that are worth more than your loan balances can be refinanced to give you cash to consolidate debt. Real estate is an even better solution, if you have equity, and is much more acceptable as collateral in a lending situation. Even with your current credit situation, you may qualify for a second mortgage loan. You may also be able to refinance your first mortgage loan to achieve a debt consolidation of the other loan balances that are harming your credit score.

If your current payment terms are the primary cause of your negative credit, you can attempt to re-negotiate your payment levels to improve your cash flow to help you get your other obligations current. Once you are able to reduce your delinquency level, you may become eligible for a reasonable debt consolidation loan to restructure your financial position.

If you are not a financial expert, you might consider working with a good credit counseling agency. They can re-negotiate your payment terms for you to improve your cash flow. As your credit score improves and your cash flow increases each month, you may qualify for a good debt consolidation loan that will stabilize your finances.

Another option for successful debt consolidation is to negotiate debt payoff for some accounts at less than full balance. You’ll need some liquid cash to accomplish this objective. You might generate these funds from a family loan or refinance an auto or real estate loan. Here’s an example of the benefits you might enjoy. Let’s say you have four loans, credit cards or obligations with delinquent balances of $4,000, $9,000, $12,000 and $15,000.  You or your representatives make offers to pay off these obligations for $2,000, $5,000, $7,000 and $10,000 respectively. If accepted by your creditors, and it’s a realistic possibility that they might, your outstanding debt, formerly at $40,000, is reduced to $24,000.

Whether you or a good credit counseling firm negotiates this result, you will have not only achieved debt consolidation, but you have totally restructured your debt and you have greatly increased your monthly cash flow.

Let Exchange Place match you with qualified providers of debt consolidation services in New York and New Jersey.