I don't have the good fortune of living in TX, I live in the sue me sue you state of GA. I've been thru a couple of BR's in my life already, I'm 55 and have been self employed in the construction biz for 35 years. Now here I am at this age and about to step in this mess again. I won't bore you with details but as my work is seasonal and to tell the truth as Im getting older I'm changing careers and evolving to online mktng, because the construction biz is easier for younger folk. But like a dummy I went and borrowed a sizable amount from a finance co. at 27% (I thought for sure it was going to be paid off in no more than 3 months) to start a joint venture and the joint person failed to come thru. So instead of doing the smart thing and paying back the money right then, I ended up using the money for bills and now am stuck with a $500 a month payment, which is all interest and I can't afford. Dumb huh? So easy to get trapped. What is killing me is that since I can't pay on the loan in big chunks like I thought I was going to be able to,(at least not now, here in the winter slow months) I've paid this HFC almost 3k in the last 6 months and the balance hasn't changed one penney. It's killing me. And I don't know how to stop it. Credit scores are still not bad but no other source to get money from. If I could just get the interest rate down it sure would help, but they don't want to hear it. If I don't pay, and they don't negotiate, then they file suit what then? I know about moving assetts, and they can lein my house, but if they get a judgement, they can garnish my bank accounts, any liquid asset, etc. Like I said this is not Texas, it's GA. Maybe a judge will take pity on all the money I have paid and no principle reduction, yeah...right. How can I get rid of this monster? Best answer: Go make lots of money. Easier said than done.
What are your scores? You may very well be able to get some balance transfer offers on credit cards which will reduce your monthly payments and allow you to cut into the balance. Since you have a business, you may be able to get business cards based upon your personal credit score and this would allow you to "hide" the personal debt insofar as most business cards do not report to your personal credit reports. If your scores are not sufficient right now, you may be able to do a few things to raise the scores in order to get them there.
Perhaps a few (more) options to think about: 1) Home Equity Loan or Line of Credit (w/your bank?) 2) Business loan w/your bank, (under your biz name) 3) SBA loan for small business, (use biz equipment as collateral) 4) Find a "personal" investor willing to loan against your home for say 10% interest (they do exist), 5) Combination of all above
Credit score 6 months ago was 700. Now is around 660, As far as transfering balances to low interest cards...I wish. I have enough credit cards and not much room left on them. My D&B rating is A+ but business loan requires personal credit and at this time of year my ratio is not good. A low interest bridge loan would be a tremendous help. Where can I find a "personal" investor at 10% on my house...that sounds like the best I idea so far. I've got about 30k equity and 15k would do the job. That would take the finance co. out and make a $500 payment into around $150 or so. Then I could start paying down the bal. on CC. By the way, I want to thank B. Ballard for referring me to this site. I think there is real help here for everyday people.
Re: a "personal investor", check w/local real estate agents, or go straight forward and place a classified ad. Investors check for these ads all the time. BTW, your credit scores are not that bad (right now), you may want to speak to your bank about loan options. P.S. Read the terms & conditions carefully on this current loan, I'm certain there are "prepayment penalties" somewhere. Make sure you know all the details (and costs) before you act on anything.
Would you believe it...no prepayment penalties. Simple interest (27%) compounded daily it seems, pay off any time. This thing is going to burn me a new one before I can get rid of it. Bank says score ok..but income ratio shoots it down. When you don't need a hand the bank is falling all over it self wanting to make a loan. Need help they get real picky. Seems backwards doesn't it?
That's why you should keep an emergency fund in the bank. If you have equity in your house, before you get to this situation, mortgage the house and put the money in high-quality, low-risk securities. If you need some of the money to help pay the mortgage occasionally, it's there. Otherwise it's there for emergencies. I know, too late for this time. I assume you've checked for home equity loan options?
I was talking about opening some new accounts in order to do some balance transfers. However, if utilization is an issue, this may not be a solution.
Well, that is a huge plus (no penalties). No, this is typical for a bank. That's why you need to take advantage of the loans when "they're falling all over you". But, to your situation...is there any chance that you can get a loan (or loans) from family or friends? Any chance of a "new joint venture parter" anywhere? I also would recommend a hard review of your finances to see where you may possibly come up with extra money towards this loan. You may have already done this, but a deep dive into where all your money goes may uncover something.
What is the answer is 42 mean? I've got about 30k equity and 15k would do the job. SunTrust won't loan any less than 25K on their equity line loan which puts me over the 80% max loan to value. They hae somebody way down in he think tank that thought that one up. I can't find any "major bank" that will make a 10K personal loan any more, even with excellant credit. It's all credit cards and finance companies now.
You're right. When I get around this I will let'em loan me and put it into something to save that will come close to the loan interest. Suntrust has their line to where there is no interest on what you don't use, and tax deduct what you do. But see answer to hedwig about Suntrust loan to value. Crazy. Friends & Family...no go.
What about a credit union? They are sometimes easier to work with. 42 is the answer to life, the universe and everything. Douglas Adams (not to be confused with Scott Adams of Dilbert fame) wrote a series of books, the most famous of which is Hitchhiker's Guide to the Galaxy. That's where the reference comes from.
I understand and I do have a couple of apps i with a CC co.'s with 0% for a year on bal TXR's. If that works It will give me some time.
How do you use or turn on the tool bar in the replies? For fonts, spell chk, insert link, etc. I see the icons but they are not active.
Try Pentagon Federal Credit Union (penfed.org) if you don't have another credit union. They offer home equity lines of credit up to 90% of value. That might at least give you something. You might want to call and talk to them first and see what they have for guidelines--debt ratio, etc.
Sorry, that was just some fun with Hedwig! It goes back to the book "The Hitchhiker's Guide To The Galaxy", it was part of the plot; the computer had the answer (42), but replied about the "question".., so they got sent to Earth.
