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Personal Loan to pay Delinquent Debt. Good Idea?

Valued Member

Personal Loan to pay Delinquent Debt. Good Idea?

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.

Message 1 of 9
8 REPLIES
Super Contributor

Re: Personal Loan to pay Delinquent Debt. Good Idea?


AprilShowers4 wrote:

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


It's hard to know without the details of your existing debt and also the personal loan ~ things like interest rates, balances, loan terms, etc....

 

In general in can be good to consolidate revolving debt into an installment loan if the terms are favorable.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 9
Moderator Emeritus

Re: Personal Loan to pay Delinquent Debt. Good Idea?


AprilShowers4 wrote:

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


I agree with pizzadude. It depends on several factors. We'll need more information.

Message 3 of 9
Valued Member

Re: Personal Loan to pay Delinquent Debt. Good Idea?


pizzadude wrote:

AprilShowers4 wrote:

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


It's hard to know without the details of your existing debt and also the personal loan ~ things like interest rates, balances, loan terms, etc....

 

In general in can be good to consolidate revolving debt into an installment loan if the terms are favorable.


Existing debt: 2306 to hunter warfield, 340 suntrust acct, 310 att acct, 50 parking ticket, 112 to nationwide insurance, 700 to asset acceptance, 150 bal on target card, 200 on walmart card, 140 on victoria secrets card, 200 on cap one platinum card. 3900 bal remaining on cap one auto loan.

 

Now I have received some pre-approved offers from one main financial regarding a personal loan but i googled and people were saying the rates were 48 months. i have another preapprove offer for 5250 for 48 months and 26.14 apr.

Message 4 of 9
Super Contributor

Re: Personal Loan to pay Delinquent Debt. Good Idea?

 

I don't know the terms of your loan offer from OneMain, but you might want to closely scrutinize the interest and how it is applied.

 

Here's a recent post you should take a look at also:   http://ficoforums.myfico.com/t5/General-Credit-Topics/One-Main-Loan/m-p/1478502/highlight/true#M1641...

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 9
Blogger

Re: Personal Loan to pay Delinquent Debt. Good Idea?

Are these all closed and negative accounts reporting on your credit report?

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

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Message 6 of 9
Valued Member

Re: Personal Loan to pay Delinquent Debt. Good Idea?


pizzadude wrote:

 

I don't know the terms of your loan offer from OneMain, but you might want to closely scrutinize the interest and how it is applied.

 

Here's a recent post you should take a look at also:   http://ficoforums.myfico.com/t5/General-Credit-Topics/One-Main-Loan/m-p/1478502/highlight/true#M1641...


I meant to say I googled that the rates for one main financial are 36% Smiley Indifferent

Message 7 of 9
Established Contributor

Re: Personal Loan to pay Delinquent Debt. Good Idea?

Since your credit score is 640+ I STRONGLY suggest you try for a Prosper (prosper.com) or Lending Club (lendingclub.com) loan OVER any and all other financial institutions.  Peer to Peer lending is amazing and more people should try them.  

 

Not too many people know about these and I'm a lender on Lending Club, have had a previous prosper loan.  

Chap7 discharge 7/29/15
Fico 11/20: TR:595(high util)
Cap1(Plat+QS) 3500+2500/Merrick 1000/Express 1100.
Message 8 of 9
Senior Contributor

Re: Personal Loan to pay Delinquent Debt. Good Idea?

I'd try a bank or CU before jumping on a high interest loan. On top of that, I'd research the bejesus out of the companies here to see how/when/if people had success with PFDs and find out exactly how they can be repaid without further harm to your credit.

 

There are times people figure interest rates don't matter, they think the score rebound will net them a cheaper BT option. Addressing the bad debt incorrectly will make that pretty much impossible.


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Message 9 of 9