Loans when you have debts

It is a very difficult situation, when you have taken a loan or two but didn’t pay them back in time, in fact, you’re still in debt. But yet there’s another situation when you need money and fast. It is not that hard to imagine, you can be a student still paying off your students loan, who need some amount of money to start a small business of their own. Or maybe because of some random turn of events you were not able to repay your loan and now you’re having trouble with making the ends meet? Taking another loan may look like an easy way out, but it is not always the case. Still, it can be the life-saving option you are currently looking for.

Where to start from

Before you take another step, look closely at your finances. Not on your debts maybe, as I’m sure you know these figures by heart, but analyse your monthly expenses and income. You have to know exactly how much money you have at your disposal to assess how much you can pay for the loans – the ones you have already plus the new one. And maybe there are some expenses you can reduce for the time being? Something not too important, like a magazine subscription or your gym card? If you find some way to increase your income that would be a very good place to start from.
But if that is not the case – read on and find out all about the loans for those with debts.

Another loan when you have debts

Unfortunately, if you have problems with paying back a loan, many providers will not want to take the risk of lending you money, being too afraid they won’t get it back. So it will take you considerably more time to find a loan company willing to lend you some money. But it is possible, so don’t lose hope. The loan company may want to look closely at how are you managing your debt. So ask yourself do you even try to repay it? If you are, then your situation may not look so bad after all. In many cases, problems with loan repayment start with little things, like being late with your payment, which results in additional costs which start growing bigger and bigger. Loan companies understand such situations and tend to look differently at those who try to do something about their debts and at those who neglect it completely.

Consolidation loan

One thing that can help you when you already have debts and want to take another loan is taking a special kind of it called debt consolidation loan. Basically, it means that you take all your loans and give them to a new loan company with whom you negotiate the loan period and method of payments. Sometimes you can pay back the money in instalments – it means that each month you give a small part of your debt back to the loan company. That way your debts will become more manageable, provided you’ll be able to calculate the amount of instalment into your monthly budget. It would undoubtedly mean as well that until you pay the consolidation loan back, you should not plan any significant expenses.

But before you decide to take a consolidation loan look at your debts – maybe you are paying back a loan with 0% interest rate? If that is the case, it would be best not to include it into a consolidation loan as you will have to pay the interest then for sure.

Apart of the consolidation loan, you can also apply for an ordinary one, as there are providers who do not run a credit check and there are others willing to lend you money despite the debt you have.

How to get a loan

You can apply for a loan online – all you have to do is go to the provider’s page and fill out the form. You won’t need anything more than just your ID and ban account number. You will be asked to provide some information though, concerning your monthly income and expenses, marital status, your workplace and… credit history. Good news is that you only have to give a statement about your income and workplace and in most cases don’t have to present any documents. But if the provider has doubts whether to lend you the money or not (and based on your credit history such doubts are probable) they may ask you for some proof of income.

After that, all you have to do is wait for the decision. If your application is approved, you may be asked to pay some insignificant amount to the provider’s bank account for them to verify yours. After that, you should get your money in a matter of days, and sometimes – even minutes!

Risk factors

You have to understand though, that taking a loan when you already have problems with paying back your debts might not be the best idea. You have to be sure that you will be able to pay back the new loan you are taking. Otherwise, your situation might not get better at all.

When you decide to take the loan after all, read the contract very carefully. Look for some additional costs – for insurance or commission. And find out how much it will cost you if you fail to pay the money back in time. Then look at your monthly budget and double check whether it will be possible to repay the loan. The last thing you want is to have another debt on your account.