Internet's first get-out-of-debt community - 122,000 members

Last edited by vincentkallis on Fri Oct 07, 2005 1:55 am

I was talking to a bank and it turned me down for a loan.

How can I get a loan to pay some old bills? The bills amount to around 3500 and right now whatever i earn is spent and there is no money left to pay back the old bills, any help will be appreciated.

VK

Posted: Fri Sep 30, 2005 12:40 pm Subject:

Posted: Fri Sep 30, 2005 3:33 pm Subject:

Vincentkallis

Welcome to the forums.

Since you are looking for a new loan, the three digit credit score is the most important factor to analyze your financial worthiness. Based on these credit scores, loans or credit can be acquired from the creditors and other lending agencies. When the credit score is evaluated, extensive research is conducted on the following areas of your credit report.

Your payment history is analyzed.
The amount that you owe is taken into consideration.
Length of your credit history is determined.
They look out for the types of credit that you have used so far.
They will look into your new credit.

Since you said that the money you earn is simultaneously spent, you need to follow some good budgeting tips that will help you to keep a check on your finance. Also, even if you are granted loan, you might be adding further debt on the existing ones. This will increase your debt to income ratio and the overall expenses as you will have to pay the interest twice.

There are some types of loans that require property to be pledged against it. If you miss any of the payments, you might be at the risk of losing your property.

Considering all the mentioned facts, debt consolidation program will be a better choice for you at this stage.

When you will use this program, the consultant will contact your creditors and get the interest rate and monthly payments reduced by a considerable margin so that you are able to pay it realistically. The consultant often knows the key contacts at the place of the credit companies. He works whole heartedly so that you get the best deal.

Let us take a hypothetical situation where a person is having a debt of $8000 with a major credit card company and the interest is offered at 22%. Considering the advantage of the debt consolidation program, the consultant will be able to lower the interest rate and the monthly payments significantly. A skilled consultant working in the program will be able to reduce the debt by a margin of 40% to 60% and eliminate all the financial charges and the late fees.

Thus, the consumer will not have to pay the insurmountable interest fees in such a program and the payment will be going towards what is owed.

The bonus of this program is that you won't have to write numerous checks to your various creditors. You will have to write only one check and that will be in the name of the debt consolidation company with whom you are working. Thus, all the payments are consolidated into one loan amount and the trained consultant will further deal with your creditors in the rest of the program.

You will be sent statements of your monthly payments made to your creditors and thus you will be able to see your debt shrinking each month as it gets paid off.

Please read the page given below to know more about this program and know your better options.

http://www.debtconsolidationcare.com/benefits.html

If you have any queries regarding this matter, do not hesitate to post it here.

Regards
Roxette

solvingdebt · Posted: Fri Sep 30, 2005 4:12 pm Subject: I was also rejected for a loan

Thanks for the insight. I now have an idea to improve the areas of my credit.

Posted: Thu Oct 20, 2005 7:13 am Subject:

Borrowing money to get out of debt has been a big mistake for a lot of people. I'm telling you that out of experience. God I wish my debt was only 3500...it used to be and then out of nowhere it was much much more. Then I started borrowing money to pay off my credit cards and it was all down hill from there.

Good Luck!

-Sarah

Posted: Thu Oct 20, 2005 2:33 pm Subject:

Some loans also require property to be attached against it. So, if there are defaults, we might lose that property attached to the loan. Keep yourself away from the loans especially for paying your debts. You multiply the amount of debt all together.

john gaffney · Posted: Tue Jan 10, 2006 9:29 am Subject: loan

I need a small loan 2000 have income to pay back.Bank will not loan me money bad credit. Help.

Posted: Tue Jan 10, 2006 10:50 am Subject:

John,

Go through the link below, it might help you in searching a legitimate lender.

http://www.debtconsolidationcare.com/forums/financial-resource.html

Beware of the lenders willing to work with you despite of the fact that your credit is not so good. Also be alert if a lender asks for some fees in advance. Read this entire thread carefully and browse this forum too-

http://www.debtconsolidationcare.com/forums/loan-scams.html

Feel free to ask your queries in the forums Very Happy

Keira · Posted: Tue Jan 31, 2006 11:22 am Subject: Loans vs Debt consolidation

Hello,

I am currently going some financial hardships that I can't seem to find an answer to. I work between 50-55 hours a week and the take home pay is not enough to pay all the bills & put food on the table. As it is, I am behind on several payments and to top it all off I have bad credit.

Prior to this job I was unemployed for almost 2 years so I maxed out 2 credit cards with daily life: food, transportation for interviews, gas, etc. I pay up to wazoo but can't seem to lower the balance. They've also raised my minimum to almost $400, which I can't comply with.

If I get rid of those credit cards and my car payments (which sum to up to approx. $13K, I would be in a much better position to handle my debt, I think. I doubt I could get a loan with my credit history, so is loan consolidation my best option?

Sometimes I think I'm drowning in all this debt and I don't know how to get out of it. Any advice will be greatly appreciated!

Thanks!

Posted: Tue Jan 31, 2006 11:43 am Subject:

Keira,

A loan cannot be the solution for loans. First, no one will be willing to lend you money at this stage, since your credit is not so good. As a result you might have to put some collateral against the new loan and there is a risk of losing this property if you become defaulter in future.

When the topic is loan vs. debt consolidation, I will always vote for debt consolidation. The process is technically correct and it will lead you towards a debt free life ensuring a good credit.

You can sign up with this site to have a free consultation. The professionals would be able to clarify all your queries after analyzing your debt and income thoroughly.

See the benefits of debt consolidation here:

http://www.debtconsolidationcare.com/benefits.html

*Name:
*Email:
*Phone:
*Zip:
Debt

	* denotes required field

Internet's first get-out-of-debt community - 122,000 members

I want to get a loan to pay off bills, but i cant

Members Area

Free Debt Counseling

Ask the community

Featured Discussions

Featured Articles

Question of the Month

Useful Links

Recent Forum Discussions

Recent Blog Post