If you have outstanding debts with high interest payments every month, you may find yourself paying exorbitant monthly payments without making a considerable impact on your principal balance. At Morgan & Partners Inc., we help individuals in the Barrie, Ontario region regain financial stability with low-interest personal debt consolidation solutions.
There are, however, some circumstances where personal debt consolidation may not be an option. If you find yourself rejected for a personal debt consolidation loan, here are some reasons why and what you can do about it:
- If you’re not making enough income per month to cover your basic living expenses, it is unlikely that that you will get approved for a personal debt consolidation loan.
- Consider the fact that personal debt consolidation loans are usually set at a higher monthly rate than most credit cards in order to expedite the payment, which will make it more challenging to stick with a repayment plan if you’re already in a crunch.
- Also, most financial institutions usually only allow you to borrow up to 40% of your annual income, which means that if you’re not making enough to cover your debt, you’ll probably be rejected.
- When a financial institution is considering your application for a personal debt consolidation loan, they look at your assets to determine if you are a viable candidate that can pay back your loan.
- If you have no assets to show as collateral, we recommend getting a co-signer for your loan. They will look at the financial standing of your co-signer to determine if you qualify. However, your co-signer will become 100% responsible for paying off your loans if you are unable to meet your payments.
If you’re unsure of what your options are, call us today. We’ll answer any questions you have to give you clarity and confidence regarding the right financial solution for you.