Generally, most people would agree that debt consolidation just simply sucks. But despite this fact, they still remain very tempting for people struggling to transfer their so called debts to a better arrangement. But as how they would say it, with will comes a lot of ways. Do some research, try to swerve a bit, connive with some, be cunning, or you can blag if you want to and you'll surely find yourself in a better deal.
Research
Spend time with your computer or laptop and do some research online for loan terms offered with low interest rates, but always do it as soon as possible, as rates that go below 7% will vanish quickly unnoticed. If you are just persistent enough, you will find a decent loan option out there.
Connive
When looking at a deal, you'll see the APR (annual percentage rate), and probably the safe-looking word 'typical' attached to it. This means that the good rates are given to around two-thirds of approved applicants and the bad rates are offered one-third of the remainder applicants. This also means they have the option of choosing the clients that they want. Out of ten, there is a possibility that seven will be rejected so that the "typical" rate will be given to two of the three remaining applicants.
Therefore, if you happen to have a bad credit history, or you simply don't fit the lender's required profile, you could be rejected with the offer or given a worse one. If you have a feeling that you won't be one of the favored applicants, it might be best to try to look for lenders offering a balanced rate for all approved applicants.
Blag
If you give loan providers a call, they will be more likely to give you a quote given the details you provided with your finances. If they turn you down, then at least it happened without another search mark on your credit record, which can give a negative effect on your ratings by the way.
Swerve
Let's see the facts that really matter. You'll have more chance of getting that typical rate when you apply for payment protection insurance (PPI), and you'll really have a better chance of getting your loan approved. Sad But true indeed.
The best advisable way is to get a quote, and highly mention that you're planning on getting a payment protection insurance. Then - here's the trick - instantly change your mind: ask them to remove the cost they gave for PPI and simply re-quote. If getting a quote only is not possible, then just take out the policy that includes a PPI. Be advised that you will be given an ample amount of time and the right to cancel the policy within 2 weeks (some providers allow 30). They should inform you on how to this process can be done, and a written letter will do the trick, so take the loan and remove the PPI.
Always remember though, if you fail or simply forget to cancel out on the PPI, it will cost you. Never forget to cancel it.
