Loans for People on Debt Management

You’re on a debt management program and are looking for a loan with bad credit. Here’s some lenders that offer same day loans with no credit checks.

If youve entered a debt management program, this will have been registered with credit reference agencies. Unless youve got a cosigner, dont waste your time applying to the banks. Secured or unsecured cash loans for people on debt management are available without passing a credit check, but youll need to think outside the box.

Lenders like to assess your creditworthiness, so the absence of credit scoring means that the cost of borrowing will be higher. The Consumers Union stated that: “The interest rates for such transactions are a staggering 212% for a one-month loan.” Even when you provide collateral, youre more likely to default so the APR reflects the risk.

Bad Credit Loans with Cosigner

 

Provided that you can get the signature of a cosigner, bad credit history loans for up to $3,000 are available from poor credit lenders. The individual who cosigns the loan will usually be a very close friend or family member with a very good credit score.

If you default on the credit agreement, your cosigner becomes responsible for the repayment of the debt. Given the usury rate of interest and size of the advance, this is a very important consideration. The Federal Trade Commission (FTC) offers some helpful advice on co-signing a loan.

Family Loans

If a family member is prepared to cosign a loan, its worth asking if theyre willing to lend you the money. The main advantage is that youll pay far less interest. Given that most poor credit rating loans cost $25 for every $100 you borrow, its worth checking to see if theyre prepared to help you.

Borrowing money from a member of the family has its pitfalls. If youre unable to repay the debt, it could place a strain on your relationship. Dont bury your head in the sand, talk to them and explain whats happened. They may be prepared to offer you a repayment holiday.

Pawn Shop Loans

Pawnbrokers lend people money based on the provision of an item of value, such as gold or jewelry. Theyll assess how much your collateral is worth and will be prepared to lend you up to 50% of its value. As long as you can provide identification, it doesnt matter if you have a job or checking account.

A pawnbroker loan is secured so failure to repay it will lead to the loss of your collateral. For this reason, its inadvisable to use a possession that has any sentimental value. However, if you pay off the interest that has accrued, you may be able to extend the agreement by a month.

Payday cash Advance Loans

Provided that youre in full-time work, you may be able to borrow up to a $1,000 without collateral. You must be a U.S. citizen, over-18, have your own checking account and provide the lender with two forms of identification. Although it can be extended, the lending term of the advance is one calendar month.

A payday advance loan isnt available in some U.S. states, including Georgia, Virginia and Ohio. Other states have placed restrictions on the maximum amount that you can borrow and the rate of interest. For example, the borrowing limit in California is just $300.

Loans for People on Debt Management

Given that youre managing your credit obligations with a debt solution, think very carefully before borrowing any extra cash. Youve found it difficult to manage your credit agreements in the past and have entered a debt management program to restore balance to your finances. Do you want to exacerbate your financial difficulties?

A bad credit history loan isnt cheap, so making the repayments could compromise your ability to meet your outgoings in future months. Dont use the money to make frivolous purchases, use it to deal with genuine financial emergencies only. Dont just spend the money on a foreign holiday.