HACKENSACK, N.J., May 23, 2016 /PRNewswire/ -- For people with bad credit, applying for debt consolidation loans seems like a logical choice for reducing their monthly expenses. The promise is that the interest rates on the new loan will be much lower than what someone is currently paying on their credit cards or other debts. And that usually is the case.
However, what many people don't realize is that qualifying for these loans when they have bad credit can be next to impossible.
Many lenders promote these loans for people with not so good credit, but the reality of getting approved is much different.
That's because the two main factors that determine whether someone qualifies for a loan are their credit and payment history.
So if someone has a lot of debt, there's a good chance their payment history isn't great. And if they have bad credit on top of that, their odds of getting approved for debt consolidation loans are slim to none.
Consumers are left to wonder why a company would promote such a loan if they have no intention of giving the person the money they need.
That's the subject of a new article from Allstate Debt Consolidation, which can be viewed at: http://allstatedebtconsolidation.com/blog/bad-credit-debt-consolidation/
The article reveals the heartless reason why lenders go out of their way to promote these loans, even though they don't actually lend the money to people with bad credit. It's an eye-opening look at the length some financial firms will go to promote their business online.
In the article, consumers learn what happens when they apply for these loans, and the precautions they need to take to avoid being taken for a ride.
The article also explains how bloggers and other websites help these financial institutions carry out this deception. Many people looking for debt consolidation loans with bad credit don't realize what they are getting into when they apply.
And they don't realize all of the other problems that are forced upon them when they try getting one of these loans.
"Besides getting rejected for these loans, consumers wind up dealing with other shady companies they never signed up with," says Jack Dominico, representative for Allstate Debt Consolidation.
"Not getting approved for the loan is bad enough, but then being solicited for other services that they never asked for make the situation worse."
"If, for some reason, a lender does give them a loan, it comes with an outrageously high interest rate. And if the interest rate is more than what someone is paying on their credit cards now, what's the point of getting this loan?"
For the people that have good credit and believe they can qualify for a loan, the Allstate Debt Consolidation website shows them their options for doing so.
Consumers can visit http://www.allstatedebtconsolidation.com/debt-consolidation-loans.html to see what their options are.
The article goes on to explain what other solutions consumers have if they don't qualify for debt consolidation loans because of their bad credit. For example, people can learn about a strategy where they can actually hire a debt professional to help them lower the total amount of debt they have. And they never have to pay this professional until they succeed in lowering the debt.
That's in stark contrast with a consolidation loan, which actually increases the overall debt because the loan is stretched out over a longer period of time. So people wind up paying interest for a much longer time.
The site is filled with other "how to" articles that can walk people through almost any aspect of personal finance.
Allstate Debt Consolidation
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/allstate-debt-consolidation-reveals-the-truth-about-loans-for-people-who-have-bad-credit-300272756.html
SOURCE Allstate Debt Consolidation