How debt consolidation can help even if you have a less than perfect credit score
The King Family is like any other family—they have their ups and downs, but they always find ways to stay strong. Unfortunately, one of their recent challenges was their credit score taking a dip.
But with the help of the Loansmart team, they were able to get a loan with affordable monthly payments for the home renovations they had been dreaming about. Let’s take a look at how we helped them.
- Current Reality
The Kings are a married couple with two children who found themselves in a tough spot when it came to their credit score. With $50,000 in personal debt and $10,000 of that being at 28%, they were having trouble making all of their payments on time.
- Desired Future
They wanted to do some home renovations but weren’t sure if they could get approved for the $5,000 loan they needed to make it happen due to their poor credit score. They also wanted to lower their repayments so they weren’t under so much pressure, and could improve their credit score in the long run.
- Solution
That’s when they turned to the Loansmart team for help. We took the time to find out why their credit score was so low. It turns out that many people don’t realize that being late on bill payments can negatively impact their credit score and this is exactly what had happened with the King’s case – not just one or two bills but multiple missed payments had taken its toll on their rating.
One of King’s loans was already on a pretty favourable interest rate of 12%, so naturally, we left that loan as is and instead focused on the rest. We wanted to focus on consolidating the higher-interest debts and stretching out their repayments, making them more manageable each month. We were able to offer them a $20,000 loan. We consolidated into their new loan their Q Card and Afterpay balances.
They were left with over $5,000 to complete their renovations! Best of all, we were able to reduce repayments from $2000 a month down to $740 a month! With the extra money available after consolidation, they are able to set aside some funds for emergencies — or something special they desire! But most importantly, they are now able to pay their bills on time, which will help improve their credit score in the long run.
- Key Takeaways
The King family story shows how even if you have been struggling financially in the past or currently have a less-than-stellar credit rating, it doesn’t mean you can’t make your dreams come true!
With Loansmart’s personalised approach and dedication, even people with bad credit scores can find great solutions. Contact us today and let us show you how quickly things can turn around!
- Next Up
The fourth and final in our series on Debt Consolidation. The Williams are determined to take control of their financial situation. They have $99,000 in separate loans and are looking for the perfect solution – one loan, one easy monthly payment, a better interest rate, and a top-up!
But can Loansmart tick all their boxes? Of course! We’ll show you how we did it next week.
