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.
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.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.