Apologies if this is in the wrong spot.
I have a decent amount of revolving credit debt (85K). i was paying it down but my wife was laid off a year ago and my plan to pay it all down while on 18-24 months no interest promotional periods, it have had to pay minimums and even add a bit to it to cover some life expenses.
In a few months my no interest promotions will end. I have no other offers from my cards with 0 balance (ive tried calling them to see if they could in addition to web offers) leaving me with big interest fees. I was wondering if a debt consolidation loan would make sense and if so who is reputable?
card - balance/limit
BoA - 27k/32k
Wells fargo -22k/25k
prosper - 0k/1k
Savor - 0k/1.5k
venture 7k/9k
paypal 0/10k
amazon 4k/10k
discover 0k/10k
Amex - 0/35k
quicksilver 0k/5k
FNBO - 1k/15k
citi 19k/33.5k
credit scores are still haning on in the 700 range. 0 baddies.
Yes i could make $1800 a month payments. I'm putting a minium of $1805 a month towards them now. The minimums in a few months will balloon that to $2400 which gets dicey for me.
I get an annual bonus of 10-15k after taxes in december, which i always put 100% towards my debt. Hopefully my wife finds something but i dont want to rely on that. I have some savings as a safety net and my salary covers 100% bills plus debt but as mentioned that math gets real dicey once the no-interest promotions end and the minimums jump up... plus id rather not pay 22-30% APRs if i can manage it
@FicoMike0 wrote:I hate to look at the downside, but what does recovery look like? If you got a a $85k loan at 10% for 5 years, the payments would be $1800 a month. Could you make that? If not, you may have to look at bk. Probably better to plan for it, if that's where you're headed.
Also i read about DMPs... is this a real option or a scam? i know most debt consolidation programs will have you like stop making payments so they can negoriate buyouts of your debt (not an avenue im into) but having read a bit it seems liek DMPs are accredited non profits who credits may work with to lower rates?
i was pointed to this: https://www.greenpath.com/wellness/financial-counseling/debt-management/?partner_name=NFCC+National+...
My DTI is at 59% which includes mortgage, revolving debt, and student loans
@FicoMike0 wrote:A loan would be good if you can get it at a reasonable rate. You're with amex, they're reputable. The problem is getting the loan with high utilization. Your agg. Is 45% and you have some pushing 90%. What's your dti?
You could try creditkarma, see what they can find. Then come back and post who and how much you get, you should get more specific feedback.
This is the downside of 0% bt deals. You max out a 0% account(s), taking a big score hit, no problem, the score will recover when you pay down the account at 0%. If you don't manage to follow through with payoff, your stuck with the debt and lower scores.
Credit Karma came back with a bunch ofr 40-50K loans but the interest rates were very high 20-27%
I just checked my experian fico and it is 701 for reference. dont currently pay to see all 3
@jamaster14 wrote:Apologies if this is in the wrong spot.
I have a decent amount of revolving credit debt (85K). i was paying it down but my wife was laid off a year ago and my plan to pay it all down while on 18-24 months no interest promotional periods, it have had to pay minimums and even add a bit to it to cover some life expenses.
In a few months my no interest promotions will end. I have no other offers from my cards with 0 balance (ive tried calling them to see if they could in addition to web offers) leaving me with big interest fees. I was wondering if a debt consolidation loan would make sense and if so who is reputable?
card - balance/limit
BoA - 27k/32k
Wells fargo -22k/25kprosper - 0k/1k
Savor - 0k/1.5k
venture 7k/9k
paypal 0/10k
amazon 4k/10k
discover 0k/10k
Amex - 0/35k
quicksilver 0k/5kFNBO - 1k/15k
citi 19k/33.5k
credit scores are still haning on in the 700 range. 0 baddies.
1. A debt consolidation loan may give you some limited short term relief, on some but not all of your accounts, but in my view it just puts you in a deeper hole, turning short term debt into long term debt.
2. If you do go for a loan, you should join a credit union, as they have better rates.
3. IMHO a better way of dealing with your situation is to
(a) stop using credit cards
(b) 'snowball' your existing balances -- i.e. concentrate on paying off smallest balance, then next smallest, and so on
(c) find a way to increase or supplement your income
(d) find ways to cut expenses
I hope you are not using your cards. I would call all the card companies and ask for a courtesy rate reduction and/or a hardship program.
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