If you are in the same boat as so many other Canadians, you are probably carrying a lot more debt than you should be. It’s nothing to be ashamed of considering how normal relying on a debt has become in Canada. Where things get a little dicey is when your debt starts creating problems. As a result, it shakes the foundation of your financial stability. Debt Consolidation could be the right choice.
At all times, you do need a solid financial foundation for economical survival. As long as you can maintain a reasonably good credit rating, you’ll have the ability to secure a loan. Without a good credit rating, you might find yourself in a quasi financial prison.
What to Do About Debt Issues
If your debt issues have put you in that financial prison, it would behoove you to find a way back to financial stability as quickly as possible. Depending on your circumstances, there could be limitations to the options you have at your disposal. With limited options, you need to know how to get approved for a loan under difficult circumstances.
If you choose to do nothing, there is a good chance things will continue getting worse. Over time, you might find yourself facing drastic measures like bankruptcy. While bankruptcy might allow you to consolidate or eliminate your debt, the price of doing so would be very high. Most likely, your credit rating would suffer. This will make it near impossible for you to get any kind of loans in the coming years.
If you wanted to pursue debt-relief options, you might be able to get some subsidy on your loans. This can be in the way of reduced balances, lower interest rates, and or lower monthly payments. However, you would need to hire an advocate, and you would likely see a significant hit to your credit score.
As long as your credit score isn’t unreasonably low, you might be able to consolidate your loans. Read ahead for more information.
About Debt Consolidation
If you have a lot of unsecured loans in the form of credit cards/personal loans, you might be able to qualify for loan consolidation. Let us explain to make sure you understand what it exactly entails.
At SkyCap Financial, we deal with a lot of customers who find themselves in a lot of financial trouble because of unsecured loans. When we encounter people in these situations, the first thing we think about is introducing them to the loan consolidation process.
Before we direct you on how to get approved for a loan under these circumstances, we want you to understand how you can benefit from choosing this path. Let’s take a look at the potential benefits of loan consolidations.
Cut Back on Bookkeeping Requirements
If you have a lot of credit cards/personal loans, there is a good chance you spend a lot of time each month dealing with your credit issues. You likely invest hours dealing with bills and creditors, issuing checks, and tracking bank statements.
With loan consolidation, you might be able to roll all of your unsecured debts into a single loan. Going forward, you would only have to deal with one creditor and issue a single check each month. The time savings could be significant, and the stress you feel would likely be lower.
Lowering Overal Effective APR
Credit cards are notorious for carrying extremely high-interest rates, well over 20%. If your credit cards or personal loans are subject to high APRs, a good portion of your associated monthly payments is going towards covering interest charges. That leaves your principle balances diminishing at a slow pace.
With loan consolidation, your entire loan balance would be subject to a single fixed interest rate. At SkyCap Financial, our consolidation loan rates are usually lower than credit card rates. The amount of interest savings you might experience each month could be quite significant, assuming your current loan balances are large. Remember, less money going towards interest means more money going towards principal reduction if your monthly payment amount were to remain the same.
Lowering Monthly Cash Outlay Requirements
Lots of credit card payments usually mean lots of minimum payment requirements. That is going to translate to a lot of extra cash going out the door each month. Based on the rules, you have to make your minimum payments or default on the amounts you owe.
With Debt consolidation, your monthly payment requirement would be a fixed amount. In all likelihood, that fixed amount would be lower than the aggregate amount you are paying now. With this, you would always have the option of paying the same amount you pay now each month with the excess going towards paying down the principal.
Protecting Your Credit Rating
Your credit rating should be one of your primary concerns. Most of your other options for dealing with significant credit issues will adversely impact your credit score. That is not necessarily the case with debt consolidation.
If you roll your loans into a consolidated loan, you might experience a temporary small hit on your credit score. However, you can overcome that hit rather quickly as long as you make your monthly payments on time going forward.
How to Get Approved for a Loan Under Challenging Circumstances
When a customer comes to SkyCap Financial, we are aware they are doing so because of potential financial issues. Our goal is to help each customer in any way possible.
When you think about how to get approved for a loan under difficult circumstances, what is the first thing you think about? Most likely, your concerns shift towards qualifying with credit issues showing on your credit report. Don’t worry, that is exactly where you need to focus.
Before your concerns run too deep, poor credit doesn’t necessarily disqualify you from the debt consolidation process. Quite to the contrary. We like working with customers who are motivated to find credit solutions. Remember, where there is a will, there is a way to get things done.
If you have an interest in learning about how to get approved for a loan and the consolidation of your unsecured loans in the process, you don’t need to look any further than SkyCap Financial. We would be more than happy to work with you to help you reclaim the financial stability you want and need.