Missed or late payments and loan default means that bad credit customers represent a huge risk to lenders like Cobra Payday Loans.Bad credit unsecured loans charge an APR of about 50-60%.You can file for either a Chapter 7 bankruptcy, which cancels your debts, or a Chapter 13 bankruptcy, which sets up a 3-5 year repayment plan to eliminate your debts.There is a do-it-yourself angle to finding debt-relief options. And it helps to have an open mind because there are times when adjustments are necessary.Despite that apparent disdain, the debt load for Americans keeps rising.
Bankruptcy offers a “fresh start” though with lots of restrictive conditions.
This can be done on your own, if you have discipline, but it’s often beneficial to partner with financial professionals, who can negotiate lower rates with lenders, refinance homes or create budgets that keep you on the right course.
This is the solution most often suggested by credit counselors.
In other words, if you used credit to buy a home and get a college education, you are on the good side of debt. According to a study by the Pew Charitable Trusts, 69% of American consumers view debt as a necessity, but prefer not to have it.
Meanwhile, 85% of Americans believe that others use debt to live beyond their means.