I am not a homeowner, and I have a personal loan that's screwing up my credit. I was just refused a great deal on a car because this loan is sitting out there, and even though I've been making monthly payments on time for 36 months, it's still high (around 9,300). I can't afford to make a "lump sum" payment, but I'd really like to get this darned loan off my credit report and off my back. Any ideas for (legal!) creative financing?
2007-03-30 00:09:39 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Pay as much as you can every month. This will cost you a lot less interest, and end the note much sooner!!
2007-03-30 00:33:36 · answer #1 · answered by PEGGY S 7 · 0⤊ 1⤋
You may be able to get the loan refinanced so that you pay lower interest rates. Really the only way to get ahead on these types of loans, is to start 'overpaying' the monthly bill. Otherwise you pay the interest rates forever, and the loan seems to never get paid. If your bill is $200 a month pay $250 or more if possible. If you cant pay that much and you want it to start being reduced, you have to pay at least something extra every month. The more you pay, over the actual monthly payment, the faster it gets depleted. Its the only way.
2007-03-30 07:27:39 · answer #2 · answered by firedup 6 · 1⤊ 0⤋
In addition to your monthly payment, pay some additional sum, like an extra $150 for example. It can be fixed or vary from month to month. The additional payment will reduce the principal and your loan will be paid off faster. An added bonus is that you will incur less interest as the principal amount is being reduced.
2007-03-30 07:20:41 · answer #3 · answered by not yet 7 · 2⤊ 0⤋
If you call the collection department of that particular company, ask to speak with a supervisor and explain to the supervisor your situation. Ask them to take a look at your timely and consistant payment history. The supervisors have the power to work out a "deal" with you. Ask them to make a deal that you will up your payment by so much, pay it in full, if they report to the big three credit bureaus that your status is "in good standing" and "paying as agreed" The only way this outstanding loan would be bad on your credit is two ways: at one time you defaulted and went into collections, or, the debt to income ratio is out of wack - meaning that debt for 9,000 is way more than you bring in per month in income (porportionally speaking). If that is the case - debt to income - it is hard to rectify the situation unless you get a nice size raise at your job to raise your income.
Some times when you are applying for credit somewhere you can speak with the dept. that approves/declines you and bring proof of consistant/timely payments. Sometimes this will help your cause.
Paying off a loan early? Yes, sometimes, if you can scrounge up enough money to pay a big lump payment, some companies will make a deal with you if you make that one lump payment, they will cut off a big chunk of money. ie: make a one time lump payment of 6,000 to them, they'll call it even and wipe out the rest. Make sure you get their agreement also, to report to the credit bureaus that it is paid in full. Some places though, will actually penalize you for early pay off. You have to call them and find out.
Good Luck!
2007-03-30 07:27:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can pay more than the minimum amount, but that's all you can do since you said you can't afford to do a lump sum.
2007-03-30 08:23:29 · answer #5 · answered by nabdullah2001 5 · 0⤊ 2⤋