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How to Consolidate Debts into One Payment. - The Bills.com Blog
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How to Consolidate Debts into One Payment.
Question: Hi Bill, I owe about $24,000 total debt. 12,500 mtg.($338)pmt 36mo remaining. 2,500 personal loan, Property taxpayment loan ($140)pmt 36 mo remaining. 4,000 student loans ($65)pmt. SBA loan- $8,000 currently operating a hair salon for employment. ($250) pmt. 36 months remaining. My Question--- I am having trouble finding a lender for a $25,000 loan to consolidate these payments. I was employed as a pharmacy technician for 2years, pharmacy sold and began cutting hair in a salon I built. The customer flow is excellent, but will take some months to acquire a customer base. Do I have any options other than selling my house moving to a different area where there are more employment opportunities? Help!
Cindy
Answer: Hi Cindy, you will be happy to learn that your solution need not be nearly so drastic as you proposed. Actually, you are in pretty good shape with an improving outlook.
First, over half of your debt is mortgage debt (good debt) and you are close to extinguishing the lien. That is a great leap forward. You must always have a roof over your head, and shortly, your cost of maintaining shelter will be paid up for as long as you have the house. Plus, you can let the increase in equity add to your net worth as time goes on. You can draw on the equity any time you really need the money by taking out a new home equity loan using the home as collateral.
This outcome gives you security plus flexibility placing you financially far ahead of most people. The SBA and student loan rates are probably lower than the cost of a refinance, so you probably should not include them in the debt to be refinanced. However, you can deal with the respective lenders or servicers on these debts directly to extend the notes to lower the monthly payments.
That leaves the personal loan and the property tax loan, which I take to be two unsecured notes at relatively high interest. Check out the Bills.com savings center for possible refinance and consolidation loan resources. I do not know why you were having trouble locating a refinance source since nothing in your question indicated that any but the most conservative lenders would be unwilling to refinance with you. If you can give your new business time to build without having to refinance that would be your best course. Your comment about the “excellent customer flow”
(to me, sounds like, “cash flow”) makes me think that in a few months you will be able to meet those obligations without incurring the cost of a refinance. Just undertake the necessary changes one step at a time, and don’t be so ready to “throw in the towel.” You’ll do fine, and you are almost there.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at:
https://www.bills.com/mortage/refinance/
I hope that his helps you make the right decision for your particular situation, but be sure to shop around and find a loan that meets your needs.
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