There is nothing worse than having debts pile up without money to cover them. This results in a very bad finance rating and gives a person a reputation of being a bad loan risk. Many people have turned to bad credit consolidation loans to take care of this problem.
When one becomes a bad loan risk their rating with the credit bureau immediately goes down. This means that anytime they try to get credit the person inquiring is going to be told to 'loan at your own risk', indicating the poor rating they have. Merchants and lenders who receive this kind of report are not going to extend the loan or credit that is being requested.
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