Getting a hard money loan
A hard money loan is a type of second mortgage based on the quick-sale value of your home. If you have bad credit, you will not qualify for low-interest Utah debt consolidation loans. What you may qualify for is a hard money loan at high interest rate, 20% or more. So, instead of making your payments affordable, a hard money loan may cause further debt problems.
2. Enrolling with a consolidation company that makes outrageous promises
There are consolidation companies who'll promise to help you get lower interest rates on your loans, then charge a lot of money without providing any services at all. Make sure the company you enroll with is legitimate or you could end up in worse difficulties.
3. Not monitoring whether your payments are sent to your creditors
Your creditors should send you payment statements so that you can track whether your consolidation company is forwarding payments to the creditors on time. This is essential to make sure the company does what it promises to do.
4.Continue charging on credit cards
It is better to keep your credit cards in a safe place and avoid using them until you're out of debt and your finances are back on track.