I need 11,000 to pay off debts.One bank wants 13% on 6,000 for 5 yrs..Thats all they would lend me..Another bank wants 22% for 7 yrs, but they will lend me all of the money and I would have 1 payment which is what I really want to do.Which is best? Borrow the 6000 at one bank and the rest at the other bank or borrow the whole thing and have 1 payment? Or go into debt consoladation? I would really like some good advice. I have no one to turn too?
2007-04-07 01:24:35 · 6 answers · asked by Raven 1 in Business & Finance ➔ Credit
The only reason you should consolidate debts is if you can get a better interest rate. DO NOT take the loan for 22%. That is way too high. It is probably a predatory lender. Check with a few reputable debt consolidation places. The only one I know of is through lutheran social services.
2007-04-07 02:45:11 · answer #1 · answered by Ryan 3 · 0⤊ 0⤋
Get a debt consolidation loan: A debt consolidation loan or debt loan is a method to repay all debts incurred by overuse of credit cards, overdrafts, personal loans, store cards, or any other unpaid bill and allows you to make a single monthly payment. It is a viable alternative to bankruptcy and is an excellent method of bettering your payment history, leading you to a debt free future. The reason to choose the debt consolidation loan is pay lower rate of interest. Paying only one creditor is much more convenient. You can pay your creditors on time and prevent them from threatening you.
Generally, these loans require collateral that can be either your home or some costly property. But sometimes, you can get these loans as an unsecured personal loan. But they charge high interest rates.
2007-04-07 18:55:23 · answer #2 · answered by See Saw 3 · 0⤊ 0⤋
"A debt consolidation program helps to get out of all high interest debts. There are various types of debt consolidation loans.
Home equity loan is one such debt consolidation program where a person can use home to get a loan.
This is a secured loan and the interest rates are low compered to unsecured loans.
Selecting a online debt consolidation is very easy as it allows you to total all your debts into one small payment.
"
2007-04-07 22:34:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The interest rates are outrageous. It looks to me like you would be digging a deeper hole for yourself.
If you have the finances to pay on these loans, you should have some income to use to pay off your debts.
A credit counselor might be able to help. Do a Y! search and look for one in your area.
2007-04-07 01:38:52 · answer #4 · answered by regerugged 7 · 0⤊ 0⤋
I would recommend looking into debt consolidation loans through another bank before making any decisions.
2007-04-07 01:33:03 · answer #5 · answered by becky m 4 · 0⤊ 0⤋
The interest rates are high and it is difficult to pay this type of loans.
You can make some search on yahoo to find out some other with low interest rates.
To know more you can visit
http://geteasyloans.blogspot.com
and
http://creditcardbiz.blogspot.com
2007-04-07 02:59:24 · answer #6 · answered by Anonymous · 0⤊ 1⤋