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Debt Consolidation Loan

Discussion in 'Credit Talk' started by Reshod, Apr 5, 2002.

  1. Apr 5, 2002 #1
    Reshod

    Reshod Well-Known Member

    does anyone know of a great place to get a debt consolidation loan. I am trying to reduce my debt substantially.

    I have about 18K in CC debt and the rates vary from 10.25% - 11%

    I have a 696 score with Experian, Equifax is close behind, and I still have no clue on Transunion.

    All of my income comes from Scholarships, VA Benefits, part-time job, and a little extra here and there.


    Any comments?

    TIA
     
  3. Apr 5, 2002 #2
    GEORGE

    GEORGE Well-Known Member

    "DEBT CONSOLIDATION LOANS"~~~like 20% +/-

    The only benefit is you have one payment to pay instead of maybe 5-10...but you pay longer...and may more interest...
     
  4. Apr 5, 2002 #3
    Reshod

    Reshod Well-Known Member

    That suggestion is out of the window.

    So what would you suggest, besides larger payments. I have stopped using my credit cards. I still have available credit on them, around 40%.

    Its the other 60%, thats kicking my ass.
     
  5. Apr 5, 2002 #4
    keepmine

    keepmine Well-Known Member

    Reshod,

    The only way a debt consolidation loan is a benefit is, if the interest rate is lower than what you are paying presently. I'd say your best bet is keep paying down the cards and see if some BT offers don't start coming your way.
     
  6. Apr 5, 2002 #5
    Marie

    Marie Well-Known Member

    Have you tried Citibank or Capital One? With good credit you can get intro rated, balance transfer into a lower interest rate then pay it off.
     
  7. Apr 5, 2002 #6
    Rina

    Rina Well-Known Member

    Debt consolidation loans are usually priced like personal loans (cuz that's what they really are).

    Although you'll owe 1 creditor instead of several, it'll probably hurt your score, as that monthly payment is inflexible, unlike a revolving credit card. I know this personally: TU says my score isn't higher bc my fixed monthly obligations ($100 student loan payment) are higher than my revolving debt ($40 min. due).

    However, if you're unable to find a favorable BT card, and you're disciplined enough, it can work to your advantage.

    It's just that more often than not, people who consolidate end up with more debt in the long run because they haven't learned their lesson.
     
  8. Apr 6, 2002 #7
    lbrown59

    lbrown59 Well-Known Member

    1*This don't make sense.
    According to this if your student loan was $100 and your Rev. debt was $30 your score would be even lower.
     
  9. Apr 6, 2002 #8
    the other

    the other Well-Known Member

    I was gonna suggest the Amex LOC, but they aren't taking applications anymore.

    Then I was gonna suggest an Orange loan (ING), but I don't see that on their web page anymore.

    You could try a generations cc or loc, the rate is as low as 9.9. It's not much lower than you are currently paying.

    I personally have an aresenal of various cc accounts, and I just play the balance transfer game back and forth between them all while I am paying off my debt. I found I get lower interest rates this way than using my amex loc or any other loc or loan.
     

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