Key Reasons Why You Currently Don’t Have Any Debt Relief

You’re in a financial crisis, and your only option is debt relief. Perhaps you’ve heard about how it helped others get over their financial obligations. Now, you feel optimistic that you should seek for the same solution. However, rather than feeling the same joy and liberation, your hopes are dashed because youwere declined for a chance to use it to settle your liabilities.

You’re undoubtedly wondering how is this possible. If others can get it, then why can’t you. To begin with, know that it’s possible to be rejected for debt relief. You’re not the only one who has been declined for it. Many others have experienced the same frustration as you.

It’s in your best interest to learn why you weren’t approved. Here are some key reasons:

Your income is too low

Lenders take into consideration your ability to make loan payments. If your income is not enough to cover the expected costs, then you’ll likely to be denied for any debt relief program you seek. Remember, lenders make money by way of loans. If you can’t pay them back, then they won’t make money. Thus, having a low income gives them a reason to decline you.

If a low income is keeping you from debt relief, then you might consider filing for bankruptcy. However, doing so should be your last option, the Federal Trade Commision advises. Here are reasons why:

• Bankruptcy has a long-term effect on your creditworthiness
• Record of your bankruptcy stays on your record for ten years
• News of it can make it harder for you to get a job, credit, an apartment or home, and insurance

Your debt is overwhelming

If the amount of debt you’ve incurred is too much, then it could also be a reason why you can’t get debt relief. It’s only logical. Think about it. You’re already over your head in debt. The additional burden of another loan to pay it off could consume you. Hence, their decision is not to give you more than you can handle. Here are a few tips from FaceTheRed.com to help you manage the problem of having too much debt: Start by learning your financial standing. Cut spending by working with a budget, more importantly, stick with it. Look at all your debts to determine which are the most serious and which will give you more significant problems in the long run if you fail to pay it. Debts like these include:

• mortgage
• rent or utility bills
• federal income taxes
• federal student loans
• car loans
• court-order child support duty
• Talk to your creditors to determine a mutually beneficial option.

Your credit score is in the red

A three-digit number tells lenders if you are worth lending money to or not. If it’s too low, then your chances of getting debt relief are slim. Why? It’s because your creditworthiness dictates it might not be safe for them to extend it to you. In other words, you’re a too significant risk for them to take.

You should also know that even if you do manage to get a loan for debt consolidation, the interest rates you’ll get would be higher.

Conclusion

Various programs for debt relief are financial options when you’re heavily indebted. However, you should be aware that you request for it can be denied.Principal reasons for these includebeing a big a risk due to your low credit score.

Likewise, you can be rejected for debt relief if you’re income is too low, or if the amount you owe is overwhelming. If debt relief isn’t the best option for you, consider talking to your creditor to discuss other alternatives.