Lots of debt -- need advice

[Peter1142]

I need some advice at the best way to try and tackle this. Between my wife and I we have $30k in unsecured debt, thanks to medical bills, business expenses, and unexpected home expenses. I have a good income, 80k/yr, and excellent credit despite all the debt - scores 780+ (the debt is split between us). She does not make as much.

I own a home, and have about 28% equity, the home is worth about $275,000. Paying the FHA MI but no way to get rid of it without paying refinance costs we don't have the cash to pay.

We need quite a while to try to pay it off, realistically at least 5 years. Any advice on where to put it where it can be managably paid off? Is there some kind of home equity loan that would work in my situation? I am also putting money into a 401k, and while I am sure it is not the best idea, within a few years I do have the option of raiding my retirement savings to pay it off.

[ashjt2011]

Have you looked into P2P Lending like LendingClub? I have had good luck with them, along with several people whom I have referred. There are several out there to look into like Sofi, Upstart, Lendingclub, Best Egg.

You could take a look at a credit union. Depending on your eligibility NFCU and PENFED are pretty good. I have my loan with a local credit union that really worked hard to work with me. You could take a look into this option as well.

With scores like yours, as long as your DTI doesnt end up being terribly high, you could get pretty good rates from either of those options. Nothing close to the 4% of a HELOC, although my mother did end up with a 5.99% from Lendingclub on a conolidation loan.

[SouthJamaica]

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@Peter1142 wrote:

I need some advice at the best way to try and tackle this. Between my wife and I we have $30k in unsecured debt, thanks to medical bills, business expenses, and unexpected home expenses. I have a good income, 80k/yr, and excellent credit despite all the debt - scores 780+ (the debt is split between us). She does not make as much.

I own a home, and have about 28% equity, the home is worth about $275,000. Paying the FHA MI but no way to get rid of it without paying refinance costs we don't have the cash to pay.

We need quite a while to try to pay it off, realistically at least 5 years. Any advice on where to put it where it can be managably paid off? Is there some kind of home equity loan that would work in my situation? I am also putting money into a 401k, and while I am sure it is not the best idea, within a few years I do have the option of raiding my retirement savings to pay it off.

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My advice would be

1. Do not try to borrow your way out of it.

2. Do not mortgage your home further.

3. Do not shop around for "debt consolidation" loans unless you find something with extremely low interest from a credit union.

4. Pay off the smallest balance, then move on to the next smallest balance, and so on.

[Anonymous]

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@SouthJamaica wrote:

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@Peter1142 wrote:

I need some advice at the best way to try and tackle this. Between my wife and I we have $30k in unsecured debt, thanks to medical bills, business expenses, and unexpected home expenses. I have a good income, 80k/yr, and excellent credit despite all the debt - scores 780+ (the debt is split between us). She does not make as much.

I own a home, and have about 28% equity, the home is worth about $275,000. Paying the FHA MI but no way to get rid of it without paying refinance costs we don't have the cash to pay.

We need quite a while to try to pay it off, realistically at least 5 years. Any advice on where to put it where it can be managably paid off? Is there some kind of home equity loan that would work in my situation? I am also putting money into a 401k, and while I am sure it is not the best idea, within a few years I do have the option of raiding my retirement savings to pay it off.

---

My advice would be

1. Do not try to borrow your way out of it.

2. Do not mortgage your home further.

3. Do not shop around for "debt consolidation" loans unless you find something with extremely low interest from a credit union.

4. Pay off the smallest balance, then move on to the next smallest balance, and so on.

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+1 I agree. Definitely don't raid your 401k.  However, if you still want a consolidation loan, I suggest SoFi. I have a loan with them and am very pleased. They favor borrowers with degrees.