You are negative and the credit card debt keeps rising.
Then you talk to a friend or read an ad and find that it is possible to get a loan even if you are negative.
The question is, is it worth paying off credit card debt using a line of credit for those who are negative? Let’s analyze.
However, some financials accept to lend even to those who are in this condition. These companies also analyze and measure the risk of the borrower not meeting his obligations, as well as other banks and financials.
As the risk is higher, the rates charged by these financiers will also be higher. On the other hand, the interest charged on the credit card is among the highest in the market. So you have to do the math and compare the rates and conditions offered.
There is no point in paying off the credit card debt and sinking into another with the financial one. You will just move from one bad situation to another that may be worse, ie it will not solve the problem.
With the new credit card revolving rules, you will not be able to revolve for more than 30 days. If you are unable to pay the bill, the bank will have to offer you a line of credit to repay the debt. This line offered by the bank will probably have lower rates than the card, but still very high. Consider well what is the best solution for you to settle the debt and not curl up further.
If you are negative, you probably already have one or more debts and are unable to repay them.
It’s time to plan and renegotiate debts instead of making new debts.
If you need credit, an alternative is payroll loans. In this mode, the installments are debited monthly from the salary. Even if you are negative, you get credit because your salary works as a kind of guarantee. Payroll loan rates are usually lower than those of traditional loans.
Another alternative is the secured loan. In this mode, you offer as collateral a property or vehicle of your property. The granting of the loan will be subject to review and the rate may not be as attractive as the payroll loan but is still lower than a conventional loan.