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I'm looking to get a cconsolidation loan to pay off all of my credit
cards so that I can have one payment a month. Having so many payments as well as some recent financial challenges has sed me to be unable to make many of my payments on time, and has caused my score to tank. Any suggestions on companies that will lend?
@Misses_November wrote:I'm looking to get a cconsolidation loan to pay off all of my credit
cards so that I can have one payment a month. Having so many payments as well as some recent financial challenges has sed me to be unable to make many of my payments on time, and has caused my score to tank. Any suggestions on companies that will lend?
OneMain Financial and Springleaf are two that come to mind. However they are very expensive.
I recommend that you check with a couple of your local credit unions. There definitely are lenders out that as I was able to finance a car purchase despite my bad credit. Don't expect great interest rates though. Because you will undoubtedly pay dearly for the privelege of getting a loan with bad credit, you may want to conside the following strategy instead.
Select the debt that has the highes interest rate and focus on paying that down/off. Then the next and so forth. Your credit will suffer for a while but it will rebound once your debt is paid down/off. Good luck.
Words of advice.. Never borrow money to pay off borrowed money (debt).....
If you can't organize a few payments together, then you need to work on your responsibilty/organization of debt, before taking on another debt.
I agree with ^^^. Borrowing high interest money to consolidate your various payments will make your problem worse.
So try the Dave Ramsey snowball method. The very first thing to do is get organized. It doesn't sound like you have a lot of payments, just that you don't have a system in place. It is fairly easy to set up a seamless system to help you get organized. Plus, you won't get hit with huge rates and other fees. And you will feel better too
The easiest way to see quick results is to make minimum payments on all your debt except one. For that one, pay it off as rapidly as possible to zero. For quick results, choose the lowest balance card. Then once that one is paid, choose the next lowest balance and apply all that you can to pay it off rapidly. Do that until they are all zero. Dave Ramsey explains it better. It's easy to do and satisfying too. Good luck.
@mtrsprt wrote:Words of advice.. Never borrow money to pay off borrowed money (debt).....
If you can't organize a few payments together, then you need to work on your responsibilty/organization of debt, before taking on another debt.
I sort of disagree with this. I recently borrowed $2,700 from my Credit Union to pay off a few cards that had rates of 20-27%, most with low limits. Got a rate of 12.5% (my credit isn't the best - was low 600 FICO at the time). As the result of my cards being paid off and utilization going from very high to about 8%, my FICO shot up to the high 600's.
Since my cards all had low limits and high rates and some with AF's due to my not so great credit history, I decided with my new higher score to App for a couple of Chase cards, and got $5K Freedom at 0% for 15 months, and a $6K Chase Sapphire Preferred. I bet I would not have been approved for those without my credit cards having been payed down to a low utilization, which shot my FICO up. Same amount of debt, but half the interest rate and higher FICO....and the credit scoring system looks at installment debt differently than Revolving.
THat being said, if you don't get a better rate on your personal loan than your credit cards it probably won't help. And my credit had probably gone to "fair" status when I got my loan, and I had good income, low debt so didn't really "need" the money. Also, it sounds like your payment problems are recent from your post. I don't think you're going to get a low rate and approval...creditors are likely to see you can't make payments recenttly why would they lend to you (at any non-predatory rate).
So, I think people are right about you maybe working on your responsibility/organization of debt, but I just don't agree with the advice to "Never borrow money to pay off borrowed money". In some situations it makes a lot of sense, in mine it did.
If you cannot get a loan, I would think about a debt management program. The one I used was Fabulous!. Send me a PM if you would like the contact information. Some are nightmares, but I have had two great experiences!