PayPal Loan Builder / Swift Financial offering reduced payment plans

[Creditaddict]

I had a $100k Loan Builder loan I had taken out in Jan that I was going to just keep paying as normal... Paypal froze payments for quite a while from sometime during April to like June and then payments restarted... I'm down to under $49k and received an email call us we have reduced plans so I called to see what that would be since I felt a lot of the fees to the loan builder were paid upfront.

They stated it was a 42 months plan on monthly payments instead of my weekly payments.

The remaining interest would be removed from the loan amount and then the new loan would be 9.9% with 6 interest-only payments followed by 36 regular payments.

The remaining interest brings the loan balance down almost to the amount that it will cost if I now keep this new loan term the full 42 months but it has no pre-pay penalty.. seems like a no-brainer!

[egold1234]

Swift/Loan Builder is in trouble. I know quite a few people who are in default with them. I'm one of those people. They offered me a one time payment with a 30% reduction in balance. They also offered to freeze the amount at 0% with weekly payments.

I will probably negotiate them down a bit more and take the lump option.

Good luck to you!

[MansaMusa]

What interest rate were you offered on your $100K loan?

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@Creditaddict wrote:

I had a $100k Loan Builder loan I had taken out in Jan that I was going to just keep paying as normal... Paypal froze payments for quite a while from sometime during April to like June and then payments restarted... I'm down to under $49k and received an email call us we have reduced plans so I called to see what that would be since I felt a lot of the fees to the loan builder were paid upfront.

They stated it was a 42 months plan on monthly payments instead of my weekly payments.

The remaining interest would be removed from the loan amount and then the new loan would be 9.9% with 6 interest-only payments followed by 36 regular payments.

The remaining interest brings the loan balance down almost to the amount that it will cost if I now keep this new loan term the full 42 months but it has no pre-pay penalty.. seems like a no-brainer!

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[Creditaddict]

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@MansaMusa wrote:
What interest rate were you offered on your $100K loan?

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@Creditaddict wrote:

I had a $100k Loan Builder loan I had taken out in Jan that I was going to just keep paying as normal... Paypal froze payments for quite a while from sometime during April to like June and then payments restarted... I'm down to under $49k and received an email call us we have reduced plans so I called to see what that would be since I felt a lot of the fees to the loan builder were paid upfront.

They stated it was a 42 months plan on monthly payments instead of my weekly payments.

The remaining interest would be removed from the loan amount and then the new loan would be 9.9% with 6 interest-only payments followed by 36 regular payments.

The remaining interest brings the loan balance down almost to the amount that it will cost if I now keep this new loan term the full 42 months but it has no pre-pay penalty.. seems like a no-brainer!

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I believe it was 18 or 19

[MansaMusa]

Thanks. Ouch! That's more expensive that hard money with points, plus the prepayment penalty by making all the interest a "fee" instead of an interest rate.

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@Creditaddict wrote:

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@MansaMusa wrote:
What interest rate were you offered on your $100K loan?

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@Creditaddict wrote:

I had a $100k Loan Builder loan I had taken out in Jan that I was going to just keep paying as normal... Paypal froze payments for quite a while from sometime during April to like June and then payments restarted... I'm down to under $49k and received an email call us we have reduced plans so I called to see what that would be since I felt a lot of the fees to the loan builder were paid upfront.

They stated it was a 42 months plan on monthly payments instead of my weekly payments.

The remaining interest would be removed from the loan amount and then the new loan would be 9.9% with 6 interest-only payments followed by 36 regular payments.

The remaining interest brings the loan balance down almost to the amount that it will cost if I now keep this new loan term the full 42 months but it has no pre-pay penalty.. seems like a no-brainer!

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I believe it was 18 or 19

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[Creditaddict]

Tell me where I can get $100 for under 15

[MansaMusa]

The average hard money lender is 2-3 points with an interest only 12% APR, no prepayment penalty. The points drop to 0-1 and interest 10-12% the more business one does. I don't know your line of business, so these loans may or may not be available to you.

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@Creditaddict wrote:

Tell me where I can get $100 for under 15

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