I have like $2000 of debt that I need to pay off asap so I can rent an apt by august. Should I take out a loan to pay off the bills? How would I get a loan?
2007-03-03 10:40:55 · 2 answers · asked by suthrn_sunshine_lsu 1 in Business & Finance ➔ Personal Finance
My debt is from credit cards...everything is past due, like in a collection agency... I figured if i took out a loan and paid the late ones I could just make monthly payments on the loan and not get behind with that
2007-03-03 10:47:37 · update #1
I think you've already put yourself in pretty deep trouble with the nonpayments. Minimum payments on $2,000 in debt are what, $40/month? Thats only a few hours of work a month. If you can't even make those payments, how do you expect to make payments on a new loan? Thats how a potential lender is going to look at it. If its a case of you being temporarily out of work, or something like that, or if you can show somebody that you are getting back on track, and that you'll be able to pay that loan back, then you may be able to get some sort of a loan. But it is going to be a very high interest rate, and the records of your late payments won't go away. Not really sure where personal loans like that get made anymore...there is a site called prosper.com where loans get made for people getting back on their feet...but you are going to need to have a good explanation of how you got into this mess in the first place, and a clearly understandable path of how you get out to get someone there to loan you the money.
2007-03-03 12:14:57 · answer #1 · answered by Alan 3 · 0⤊ 0⤋
A loan is usually secured by collaterol, but in some cases One can get a personal loan provideing you pay it off, or instead, another credit card with a higher amount of credit to pay off the first. But only get what you can afford= within your means, otherwise you'll get in so deep you can't get out. I'd think about first.
2007-03-03 10:53:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are not that many favorable short term loans with good interest rate. I would just look into a second part time job to earn a little extra cash to pay off your debt. You don't want to get in more debt by paying off other debt.
2007-03-03 10:44:43 · answer #3 · answered by anthonyjthan 3 · 0⤊ 0⤋
you lost me there. Your bills would not go away....you would only have one large bill as opposed to a few small ones. If they are credit card bills.....first try calling each of them to make sure you are getting their best available rate. Next look at their balance transfer rates and try to get as much of your debt on the lower interest rate. Some as low as 0% but usually 6.9 or so. Unless you have a home with equity you don't have many options as far as loans go.
2007-03-03 10:45:18 · answer #4 · answered by allindotcom@sbcglobal.net 4 · 0⤊ 0⤋
NEVER take out a loan to pay off a loan you will dig yourself into a deeper hole and will find it harder to get out. If you restrict your spending to essentials and put the rest into paying off your dept you will get straight quicker and when you do continue to live within your means and don't over spend again
2007-03-03 10:54:03 · answer #5 · answered by James M 2 · 0⤊ 0⤋
I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.
2007-03-03 13:32:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
That would be like buying a Hummer to save on gasoline.
2007-03-03 12:06:52 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Yea go for it
2007-03-03 14:04:01 · answer #8 · answered by pattibcacl 6 · 0⤊ 0⤋