Can a Bank give me a loan to consolidate my debt?

Question

Well I have alot of debts estimating to $3,000.. If I go to a bank and ask for a loan would they give me one.. I mean the main reason of me getting a loan is to pay off my debts and just make it 1 bill..

What do you guys suggest? Also suggest me some good banks who offer loans for my case.

Am I doing the right thing? Because all I wanna do is to organize my debt to 1 payment.

PLS HELP!!

Answer 1

On principle, I oppose debt consolidation loans. Yes it makes it easier to have one payment, however they want to make money too, and it will cost you something. Too often these debt consolidation companies will rip you off in high fees or just plain rip you off by taking your money and not paying your creditors.

$3,000 is not a lot of money. Figure out how much you can pay towards debt every month. Then pay the minimums on everything except the bill that has the highest interest rate. Pay as much as you can to that one every month.

Also, you'll want to contact the creditors if they are credit card companies, and tell them you've gotten these other offers for lower interest rates, and you want them to match it. If you aren't actually getting these offers in the mail, go to bankrate.com or cardweb.com and check it out. If the first person you speak to can't help, ask them to kick you up to their supervisor. If that doesn't work, call again another time. Unless you credit sucks you should be able to get a better interest rate, thereby making it easier to pay back.

In no time you'll eliminate one debt after another. Keep paying the same amount every month and apply even more to the next highest interest rate debt. Soon, you'll be debt free.

Then do yourself a favor and keep saving that same amount you were paying on debt every month. Have it automatically deposited into a savings account through your payroll dept or by telling your bank to automatically deduct it on your paydays. The key is making it automatic!

Answer 2

I would go to the bank as my first preference. Explain everything, tell them exactly how much you owe and see if they will help. I did this and I was surprised how easy it was! $3,000 is not a lot of money so I think you have a good chance. The worst that can happen is that they say no.

If you do need to find a debt consolidation loan, this website has a lot of information about the pros and cons and also has some useful links.

What you must also do is cut up all the credit cards that got you into debt in the first place. Live within your means, aim to pay back the loan a bit faster than you need to and you'll be surprised how quickly you'll start to feel back in control.

Good luck!

Answer 3

Can they, of course. Will they, depends. If you're willing to put up collateral, then you'll get a better rate a better chance of a loan. Most likely, they'll want you to take out a HELOC - Home Equity Line of Credit. Of course, if you don't own a home, it'll be tough since you can't get a HELOC.

Trying to get an unsecured loan (meaning you don't put up any collateral) is harder and you get a worse rate since the bank sees it as more risky. After all, a secured loan means they have something they can take and sell to get their money back. An unsecured, well, they don't have that option.

Your best option might be to try out one of these new person to person lending sites. Currently, the only one operating in the US is prosper.com. It's like an eBay for loans, you put up how much you need (up to $25,000), what interest rate you're willing to pay, and write your sob story, and people bid on your loan. If there is lots of interest, your rate will be bid down so you'll end up paying less.

Answer 4

Hi,

I think debt consolidation loan is what you are looking for. These articles might help you:

Unsecured Debt Consolidation Loan For All
http://www.askaquery.com/question/Unsecured-Debt-Consolidation-Loan-For-All.html

Regain your financial status with Debt Consolidation Loans
http://www.askaquery.com/question/Regain-your-financial-status-with-Debt-Consolidation-Loans.html

Student Loan Consolidation
http://www.askaquery.com/question/Student-Loan-Consolidation.html

Debt Consolidation Loan for Bad Credit
http://www.askaquery.com/question/Debt-Consolidation-Loan-for-Bad-Credit.html

Answer 5

yes