i am trying to get a loan to consolidate my debt and no one will help me i just got a raise at work but my bills have such high payments, like my car. if i could get a loan i could pay off the car, and lower my insurance payments, and then pay off my other debts with it. that would leave me with so much extra money that $ 300 a month payments would be easy! and my living expences i have help with those so they would be low too. it's just no one will give me a chance i am so serious about this i want to by a house so my child will have a home of her own, but i need to repair my credit for that, but like i said no one will help me! so i guess my question is do you know any who will because right now i am drowning in debt and payday loans ( I know big mistake)! and i feel like my only way out is to file for bankrupty! ( did i spell that right) and i don't want do do that because that's the cowards way out and i want to pay what i owe. so any suggestions i really truely need help
2007-11-30 11:33:31 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Slimick, you are so right.
I read about people being thousands and thousands of dollars in debt with subprime credit cards (can we say 30% interest) and payday loans (aren't they like 100% interest?) who would never, no matter what, short of winning the lottery, be able to pay off their debts, no matter how long they paid the minimum payments on them.
They can't get blood out of a turnip, and they can't get money out of you that you don't have. File for bankruptcy if that's what it takes to get out of this mess. Or just simply don't pay the worst debts if you think you can weather the harrassing calls from collection agencies. If it's not a lot of money, they probably won't even bother taking you to court over it. And if they do, explain to the judge you don't have the money to pay them.
But most importantly, learn from your mistakes. Your credit may be bad for the next seven years, but you'll feel better not being a slave to these subprime lenders.
2007-11-30 12:27:57 · answer #1 · answered by Tracker 6 · 1⤊ 0⤋
First...don't allow yourself to be easy prey...there are MANY companies that specialize in taking advantage of people in your situation...so watch out for anyone promising to be your "savior."
Stay away from any debt consolidation company you see advertised on television.
Regarding bankruptcy, depending on your income and debt level this may be a viable option for you. Without knowing the specifics of your debt level and income it's impossible to give exact advise here.... Sometimes filing for bankruptcy is necessary. Almost all BK attorneys offer an initial free consultation, so there' no harm to getting advise here.
NEVER let anyone on this board (or elsewhere) try to guilt-trip you for filing for bankruptcy if that is what you really need to do. Corporate America uses bankruptcy all the time and you don't see anyone slamming them for making this decision. There are people on these message boards who seem to enjoy slamming anyone for doing this...don't listen to them. Do what is in the best interest for you and your family. Of course you should try to avoid filing, but sometimes the debt level vs. income is so high that all the financial gimmickry in the world can't deal with the debt and filing for BK is the only way out.
Another option is Consumer Credit Counseling Services (CCCS)....contact your local Red Cross for a referral. The best they can do is to negotiate with your creditors to lower (or even eliminate) your interest rate. They DO NOT negotiate settlements. FYI: Anytime you use their services, this will be noted on your credit file, making it VERY hard to get any new credit or loans for houses, mortgages...so be careful.
This doesn't sound like the time to be buying a house right now...There's not much point of getting a house on terrible terms and loosing it seven months later.
2007-11-30 12:14:09 · answer #2 · answered by CatDad 7 · 2⤊ 0⤋
you could get a small personal loan and pay it off in a few months or you could get a credit card and use it for small purchases and pay it off at the end of the month that way you do not pay interest and you are buildig credit, check out www.fastcreditcardapprovals.com here you will be able to compare all major credit cards side by side on rates and rewards. GOOD, BAD OR NO CREDIT they have the right card for you.
2007-12-01 10:40:35 · answer #3 · answered by GTW 3 · 0⤊ 0⤋
if you're already into payday loans, your credit is likely so poor that you'll not get a consolidation loan.
the order of paying off the debts is usually from highest interest rate downward and that is payday loan on top.
I hear your attempt to reduce outflow by paying off your car so you can drop collision coverage. Another method of doing that is to get rid of the car that costs too much. [mine is a 1994 model with 145k miles on it and still on the original clutch -- i haven't carried collision coverage in years.]
hopefully, that would dump both the auto loan payment and the collision coverage, thus reducing outflow significantly and making it possible for you to get shut of the payday loan racket.
GL
2007-11-30 11:43:02 · answer #4 · answered by Spock (rhp) 7 · 1⤊ 0⤋
I can suggest that you talk with whoever you have your payday loans thru, because most of them are required to offer payment plans to break your cycle . I know this because I have worked in one for many years . In general , they should not affect your credit unless they have had to send you to collections , most places do not use your credit to approve you for a payday loan unless you have been somewhere that ran your credit. This would be a start.
2007-11-30 12:24:53 · answer #5 · answered by Anonymous · 1⤊ 0⤋