Why You May Be Refused a Consolidation Loan
Being in debt can be a worrying time, but there is plenty of information available on the internet which will show you that you are not alone. If you are considering consolidating your debts, then here are the top five reasons that your loan request might be refused.
Too Much Debt One of the biggest reasons that people are refused a consolidation loan is that they have too much debt. They have gotten themselves into a situation where they have stretched their finances too far. A good rule of thumb is that if your monthly payments exceed 40% of your incoming, then it is deemed as too much of a risk to offer a further loan. A debt consolidation company will have all of the criteria that they use for making a decision clearly displayed on their website. As such, it is worth your time to shop around and check out each company in turn and see what their requirements are for you to be eligible.
No Collateral