Top 3 Reasons People Are Declined for Debt Consolidation Loans for Bad Credit in Victoria

When finances are out of control, people often consider debt consolidation in Victoria to help reduce interest rates and give them one payment to manage each month. It can be a good idea, but it can be declined. Here are the top three reasons financial institutions are declining consolidation loans for bad credit in Victoria.

No Security for a Loan

A financial institution will ask for collateral or security from a person applying for debt relief in Victoria. It makes sense if the person is having trouble managing their finances and payments. They want to be sure they can get their money back if you don’t make the payments. However, there are other options, such as transferring credit card balances onto a lower-interest card.

Low Credit Score

If your credit report doesn’t look good or you have a low credit score, it can prevent you from getting consolidation loans for bad credit in Victoria. Too many debts and late payments can negatively affect credit scores. Having high balances on your debts can make the problem even worse.

Not Enough Income to Qualify

Sometimes, people don’t realize how bad it is until they barely make the minimum payments on their credit cards. A loan for debt relief in Victoria will have an amount that is more than the total of all your minimum credit card payments. Credit card minimum payments are low to get the balance paid off. Consolidation loans are designed to be paid off in three to five years.

Are you interested in debt consolidation in Victoria? Contact 4 Pillars Debt Consultants to learn more.