Hard money loans are loans made with the funds of private lenders. 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. Hard money lenders can finance your next transaction.
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While every borrower is unique, borrowers who use these loans may be free from debt in a matter of years. Traditional debt consolidation can take up to a decade. 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 may be wondering why? Many debt consolidation companies only make the situation worse for borrowers. You can build a positive payment history with hard money loans by paying down the debt faster and not falling behind.
Consider a hard money loan before you make a decision about bankruptcy. A stigma attached to bankruptcy can be a significant part of your credit history that will take a lot of your life to erase. Bankruptcy is a sign that you are willing to let go of your debt and accept your responsibilities.