It can feel like bankruptcy is your only option to restore financial security when you are weighed down by unpaid debt. Many people mistakenly believe that bankruptcy is an easy way to get out of debt. Bankruptcy can be a serious decision. The results can remain attached to your credit file for up to ten years in certain cases.
A bankruptcy notice on your credit file could make it harder for you to get the job you want. Smart borrowers are choosing private party loans to consolidate their debts instead of going bankrupt. Hard money loans are loans made with the funds of private lenders. If you want to know more about hard money loans, then click here.
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Many borrowers find it easier and less stressful to secure loans to consolidate unpaid debt. This type of loan approval is much easier than traditional loans because it is more dependent on assets than credit history. Private lenders aren't subject to the same strict lending and underwriting rules as banks.
This allows them to lend money to more borrowers, even those with poor credit. Hard money loans are a faster way to get rid of your debt than conventional loans. While every borrower is unique, borrowers who use these loans may be free from debt in a matter of years.
Hard money lending has a lower interest rate than traditional loans, which makes your debt easier to manage and allows you to pay less of your total debt principle each month. Hard money loans are better than bankruptcy for your credit, but they can also be better than loan consolidation with a typical lender.
You can build a positive payment history with hard money loans by paying down the debt faster and not falling behind.