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7000 Peters Creek Rd., Roanoke, Virginia
1-866-260-5994 |
CCCS of Southwest Virginia |
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Consolidation Loans |
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I am $16,000 in credit debt but do not want to use a Debt Consolidation Plan because of the ramifications on my credit. I easily pay my monthly payment (in fact I pay almost twice the minimum due) but I would like to consolidate to a lower interest rate so that I can get my debt paid off sooner. I am no longer using the card but have not closed the account yet. Please advice me on what my options are in this situation.
Thank you, Tami
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Tami,
With your aggressive repayment efforts, you should be out of debt before long. Congratulations!
In answer to your question, you may want to consider transferring your balance to a credit card with a lower interest rate. You can research rates at www.bankrate.com. One word of caution: be sure to close your old account so you are not tempted to charge again. Also, read all of the fine print before you decide on a new credit card. Some have rates that change after an introductory period.
Good Luck!
Susan |
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I am in a mess. I have a lot of outstanding credit card bills and other bills that are way behind. With being a student and not really having a good job now I don't think I will ever be able to get caught up, pay my rent and car insurance without someone coming after me. I recently applied for a $3200.00 loan. That should cover everything. I want to just pay off everything and start fresh with one bill to repay. I know my credit is bad though and I am will not be getting this. What can I do to convince them that I will pay them on time and they are my only link back to good credit? I cant sleep at night and I have been making myself sick with worry!
Brandi
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Brandi,
Things may seem overwhelming right now, but all you really need is a plan.
I highly recommend visiting with a trained MMI credit counselor. One option they might suggest is to institute a debt management plan. On this plan, MMI re-negotiates the terms of your debts with your creditors. Many creditors work with MMI clients by lowering or eliminating interest rates, forgiving late fees and over-the-limit charges, or taking smaller payments. On this plan, you would make one monthly deposit to MMI that is disbursed to your creditors. You know exactly what to pay and when to pay. And most importantly, you know when you’ll be debt free!
I’ll bet you’re breathing easier already. Call 800-762-2271 to getstarted today.
Best Wishes,
Susan |
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I was in 2 car accidents and I'm waiting for settlements to come in that should be of good size. I am not working at this time and have got myself in debt with my credit cards. I need a loan but I don't believe I can get one at this time because of not being able to work until the doctor releases me. I do have an attorney working on both accident cases because I do have some permanent damage. Is there any way I can get a loan that I can pay back when my settlements come in.
Thanks, Dawn
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Dear Dawn,
Unfortunately, it is unlikely that you will be able to obtain a loan without any source of income. My advice would be to contact your creditors and let them know your situation. Most creditors are quite willing to work with consumers if they feel that they are making a “good faith effort” to pay. Communicating with them before they have to communicate with you will go a long way.
While waiting for your settlements, you may also want to consider seeking assistance. Contact your local United Way to investigate what resources (unemployment, food programs, etc.) may be available to you.
Good Luck,
Susan |
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My fiancee and I recently graduated college and are now planning our wedding. We have a lot of credit card debt from school and the payments are killing us. We can't seem to get ahead. I have been considering consolidating our credit cards and bringing down our interest rate. I was wondering how a consolidation loan effects a persons credit rating.
Thanks a lot, Chad
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Chad,
How a loan effects your credit rating depends on how you handle it. If you pay on time and as agreed, there should be no problem.
However, taking out a consolidation loan may or may not be the best choice. While you may obtain a lower interest rate, you also need to consider the length of time it will take you to repay. To understand the true cost of credit, figure out what you will be paying over the life of the loan, rather than just looking at the monthly payment.
Warning! If you do choose a consolidation loan, be sure to close all your existing accounts. Too often, the zero balances are too tempting and the consumer ends up twice as in debt as when they started.
With all that being said, I can’t help but to think of the old saying: “you can’t borrow your way out of debt.” You should consider tackling the existing debt head-on. To enlist the help of a nonprofit credit counselor, call 800-762-2271.
Congratulations on your upcoming nuptials,
Susan |
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My husband and I are discussing applying for a consolidation loan for our credit cards so that we can pay them off quicker and with less interest, but I am concerned that we may be denied. We have already determined that a $200 payment a month for the loan is within our capabilities but the bank has the final say-so. Can you please explain to me the procedures and any other information that may be helpful.
Thank you, Nicole
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The procedure is for you to contact your bank by phone or in person and apply for a loan to consolidate your bills. Your banker will ask you to fill out a credit application. Once your banker has received your completed credit application, a decision will be made as to whether you qualify for the size loan you are seeking. If so, you will be granted the loan. If not, your banker will give you the reason/s why the loan could not be made.
If you are denied the loan, you might ask your banker if they would consider your loan if you had somebody co-sign with you. A co-signer is a person with qualifications that you might be lacking that will guarantee payments will be made on the loan.
Good luck, Susan |
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My wife and I are wanting to get a consolidation loan for about $25,000 for credit card debt. We do not own a house, so how can we manage to get a loan - "In Deep"
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You will have an extremely difficult time getting a $25,000 loan without adequate collateral. No creditor is in the habit of making a loan of that size without having the borrower put up some asset to guarantee repayment.
As an alternative, you can call /library to explore the possibility of enrolling in /library Debt Management Program (DMP). The DMP works similar to a consolidation loan in that you make only one payment each month and that payment is to /library. You agree to deposit funds with /library each month which /library will then disburse to your creditors until you become debt free. Some creditors also agree to make adjustments on their finance charges and/or other fees for clients on a DMP.
To locate the closest /library office and explore the possibility of a DMP, call 1-800-388-2227. If it is inconvenient for you to visit a /library office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service as /library except MMI counseling is done over the phone, by mail, fax and the Internet. Counselors are available 24 hours a day, 7 days a week. Good luck. |
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My wife and I have been talking about consolidating our credit card accounts and going for financial counseling soon. We owe about $31,000 plus 2 car loans. Also, the IRS has sent us a 90-day letter telling us to pay $16,000 for a 1998-99 audit conducted last year. I plan to apply for a Small Business Administration loan in order to buy new equipment for my company and generate additional income to get us out of this horrible situation. What information should we take to the appointment in order to come up with the best plan for our situation. We feel bankruptcy or sending letters to creditors will hurt our chances of getting the SBA loan.
Thanks for your help - Charlie
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When you call for an appointment, you will be sent forms asking for all resources (income, assets), a listing of your household expenses and a list of all debts owed. This information is essential to assessing your situation and possible solutions. All information is kept confidential. No calls or letters are sent without your say-so.
I understand your apprehension regarding letters affecting the SBA loan. But be aware that your debt-loan and IRS deficiency may be bigger factors in the decision. I figure your credit card payments are upwards of $600 a month and a $16,000 payout to the IRS is about $450 monthly. Adding car payments, you probably make debt payments of about $1650 each month, apart from housing costs.
But I'm only estimating. I don't have a full picture. In a counseling session you and the counselor will develop that picture and explore your options. I urge you to call MMI (1-800-762-2271) as planned.
You're in a rough place. I wish you the best. |
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CCCS, A Division of Money Management International
Regional Headquarters - 7000 Peters Creek Rd., Roanoke, Virginia
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
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