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$12,000 Unsecured Bad Credit Loan in Houston, TX

Debt ConsolidationToday we have set out on a very difficult task for our client – finding an unsecured bad credit loan. This Houston woman is interested in taking out a $12,000 loan for debt consolidation. This woman is in a very special kind of need for this type of loan, because the bank is threatening to greatly raise the interest rate on her line of credit due to her dropping credit rate. As you may know, lines of credit are renegotiated at regular intervals, and this woman currently owes $10,000 on hers with an interest rate of just 5%. If the bank has their way, this rate will shoot to over 8% owing to rapidly accumulating credit card debt. Further, she has just recently defaulted on her car loan and it has been repossessed by the car company. These two things together would ruin the credit rating of anyone, and this woman is no exception. To begin, we will explain why this woman’s finances have fallen so far, we will then explain how we helped to pick them back up again.

Ever since our client had first had the chance to build her credit rating, she has been nothing but responsible. Her good credit rating was almost 5 years in the making, and it was nearing the 650 mark after all of her hard work and consistent payments. Due to a long string of bad luck, all of this has come to a fast halt. Her car broke down, her apartment got severely damaged due to leaving a window open in a storm, and she received a large speeding ticket. All of this amounted to over $4,000. Over a two week period, $4,000 is a lot to spend. The remaining $8,000 owing on her line of credit comes from previous purchases, the balance of which she has been paying off over time. In order to pay the $4,000 worth of bills, she had to max out her credit card and her credit line all at the same time. That is a huge amount of new debt to accumulate in a small time and a huge amount of surplus income to be spending purely on debts.

If her interest rate is increase to the proposed 8% mark, she will no longer be able to make her monthly payments and will begin the slow descent into default on all of her payments. To help her, she is in desperate need of a debt consolidation loan. Is there was ever a more classic case where debt consolidation were absolutely necessary it was this one. A bad credit debt consolidation loan is far more difficult to obtain than the standard form. Those which are attainable are often not even desirable, so how can we get around the unattainability and lack of desirability typically associated with these loans?

Having first advised this client to investigate his online options around our site, we then helped him by seeking out our friends in the Texas lending market. This was one of those situations where we really felt that help was in order. While we won’t call in favors for just anyone, for this woman we were. We called ten banks in the Houston area inquiring about debt consolidation loans for bad credit applicants. Out of the 10 banks called, only 3 of which were willing to give us offers at all. Out of these three, two of the offers had interest rates higher than 8%, which was more than she could afford. The other one bank was willing to provide our client with an interest rate of 6% flat after significant convincing. With this rate, our client was able to make her monthly payments while reducing her overall debt load by a significant chunk.

Debt Consolidation Loan5% APR
6% APR
8% APR
Loan Principal
$12,000$12,000$12,000
Payment Schedule
MonthlyMonthlyMonthly
Length of Term
7 Years7 Years7 Years
Amount to be paid
$14,247.24
$14,725.20
$15,710.52
Total interest paid
$2,247.24
$2,725.20
$3,710.52
Paid perĀ installment
$169.61
$175.30
$187.03

For debt consolidation loans up to $35k, apply online.

Will Alexander

Will Alexander has over 10 years of experience as a financial expert and writer. The goal of his work is to assist the people of Texas in finding loans for lower interest rates than they thought were possible. Will specializes in bad credit loans.

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Names of borrowers and lenders have been modified, substituted, or fictionalized for search and privacy purposes. Information presented here is for entertainment purposes only and should not be interpreted as the truth.