A bad credit history is one of the worst financial situations that you can be in. It will make you think so much, that you will stop believing in yourself and your abilities. You need to take stock of the situation and realize that all is not lost. There are still people who can help you sort out your problems. You just need to seek help from the right sources.
The main culprit for your bad credit history is your debt situation. You have numerous loans, and you are unable to pay them off because of the high interest rates. All you do every year is pay off the interest, and the principle amount remains as it is without showing any signs of receding. This can eat into your earnings and cause you to stop saving altogether. In times like this, you need to contact debt consolidation experts who specialize in lending to people who do not have a good credit history.
Debt consolidation is all about putting all your loans together under one single loan. This way, you will pay a lot less interest every year. Credit card loans have a very high interest rate and this can go up to as much as 20%. If you go for a traditional loan, you may have an interest rate as low as 5% with a bad credit history. There are many lenders out there who will give much lesser rates, as not many people are borrowing due to the difficult economic situation. You can also go for securitized loans that offer much lower interest rates. If you have a home and its mortgage is partly paid off, the lenders will be more than willing to give you a low interest rate if you were to give the title papers to them. You can also secure your loans with gold, or bonds or any other valuable item that has resale value in the open market. Banks will not be willing to take physical objects like gold these days as it requires a lot of money and time to manage these instruments, whereas they will be much more willing if you were to just give paper guarantees like title, deeds to a house, etc.
The thing about debt consolidation is that it will make it a lot easier for you to pay off the dues slowly. If you have many different loans, you will have to make several payments every year. You will need to keep track of all the minimum payments that you make, whereas if you have one loan, you will receive one single statement and you can make easy payments every year to that one lender. This will help you avoid paying huge interest to credit card companies. This should be done as fast as possible to avoid getting into deeper financial debt.