Not All Debts Qualify
While everyone has experienced debt and can tell stories of having large bills to pay, how they got into their situation can be very different. Debts can range from anything including tax payments due, mortgages, credit card bills, to medical procedures and marital/child support decisions and orders. All of these count as an ongoing debt to the debt holder, but not all these categories are allowed to be consolidated against. For instance, most marital or child support orders are really ongoing support costs rather than a specific debt amount. So they would not qualify.
Most bad credit consolidation loans will consider balance transfers or consolidations for debts that include personal loans, other unsecured debt, medical bills, consumer debt and similar. Tax payments are another category that usually is not allowed. Lenders are not interested in taking on a liability to the government, especially if there’s a risk that you won’t follow through on paying them.
In the end, because everyone’s situation is different, it is always a good idea to do your own research and to ask prospective lenders what types of debts qualify for bad credit consolidation loans with their particular business. Each lender is different as well and has their own lending guidelines to follow.
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