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Variable rate vs fixed for consolidation

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I'm thinking of consolidating my private student loans. I have around 65k in private loan debt. I have an account with Wells Fargo and from what I can tell they have no origination fee or early repayment penalty.

The current rates are 4.00-8.750 for variable and 7.990-12.790 for fixed. The interest and APR are the same.

Now my credit report, as of March 2012, showed no bad claims. Never missed a payment. My debt to credit ratio is 102% though. Now as of right now, I am currently disputing a late/missing payment with AES. They claim they never received my check. I show that that check clearing my account. So I am currently waiting on my bank to get proof.

Which would be my better bet, going with the variable, which is currently lower, but could rise in the future, or go with the higher fixed?
I am tempted with the lower variable, however my brain is saying go fixed.

Which do you think is best?

Also, does consolidations always save money on the monthly payment? Thats my main goal right now. My income is high enough to meet all payments currently, but I have little breathing room for unexpected things. I want to lower my monthly outflow, even though it would likely cost me more in the long term.

Thanks,

Matt

PS: i should probably start another thread elsewhere, but is there a way to lower credit card interest? I have a card with a high balance near limit and 19% interest. I am no longer using the card and have no plans on using it as my income is high enough to support my current bills.




Don't hold your breath on getting the loan.....Wells Fargo Consolidations are almost impossible to get and your utilization is enough to disqualify you. That late will automatically disqualify you. Do you have a cosignor???

Sub: #1 posted on Fri, 08/03/2012 - 14:31

SOAPLADY SOAPLADY
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Yea I have a cosigner. I also am a current customer with them, if that helps any. I have 2 private loans through them that are in good standing. And I am hoping the late payment thing gets taken care off. I have check report from my bank that shows the money was sent to them.

Sub: #2 posted on Fri, 08/03/2012 - 15:24

matto4785 matto4785

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Your co-signer will need to have a VERY good credit score. I believe it has to be at least 750, especially with the amount you want to consolidate.

Sub: #3 posted on Sat, 08/04/2012 - 07:53

drjonah drjonah

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Also to add, being a Wells Fargo customer does help as far as getting a small interest rate deduction.

Sub: #4 posted on Sat, 08/04/2012 - 07:55

drjonah drjonah

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