A loan is always taken out when funds are required that are not available in the conventional way. It is therefore a very common means of slipping back into liquidity and avoiding payment defaults. Now you may need a loan to pay off large debts. It doesn’t matter whether these were caused by another loan or by a different situation. A loan despite high debts is possible and advisable in many situations.
Think carefully about high debts
If you want to take out a loan despite high debts, you have to be able to assess the initial situation exactly. How did the debt arise and what have the consequences been so far? If the debt is currently only accumulated and has not yet had a negative impact on the creditworthiness, it can be tackled with a regular installment loan or another type of loan that all banks and credit institutions have ready for their customers.
It is only important that you choose the repayment agreement so that it does not allow the additional monthly charges to rise too high. In addition, the effective interest rate of each offer obtained should be compared in order to work out a cheap loan in this way.
How to approach a loan differently
If the creditworthiness has already been affected by the high debts, you have to approach a loan differently despite the high debts. As a rule, the banks are then no longer as generous in granting loans and can even refuse them. In such a case, you have to use other offers. Namely, those that enable a loan even with poor creditworthiness. You can find these on the Internet or by advertising in the relevant daily newspapers.
Here it is mainly credit intermediaries who offer their services and broker a loan with a poor credit rating through a third person. The money is then made available by private donors. These also require certain security and combine an interest rate with their cash benefits, which unfortunately can be significantly higher than with a conventional bank loan. In addition, the intermediary will charge a fee for its services, which must also be paid if no conclusion is reached. You should always keep this fact in mind when looking for such a loan.