Small debt amount consolidation help and advice - The Bills.com Blog
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Small debt amount consolidation help and advice
Question: I am in debt over my head. I have a $1000 loan with a lien on my car title, a computer payment which equals a little over a $1000 with a 29.99% interest rate a student loan at $2500 and 2 credit cards maxed out at $500. I am at my witts end don't know what to do and am sick of hitting dead ends.I need toconsolidate my debt but the secured stuff as well as credit cards. Who can help me without giving me the run around.
Answer: Several types of debt consolidation loans are available, but which type is right for your situation depends on several factors. Below, I will discuss several possible solutions to your problem, which may help depending on how old the debts are, your financial situation and how much money you can afford to allocate to your debts on a monthly basis.
Very quickly, if you want a free debt consultation with one of Bill's approved debt help partners, click here: http://www.bills.com/debthelp/debt/
If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful about borrowing money against your home to pay off credit cards and other unsecured loans; you will be converting what was previously unsecured debt into debt secured by your home. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy,
as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully. To read more about debt consolidation loans, I encourage you to visit the Bills.com Debt Consolidation Resources page at http://www.bills.com/debt-consolidation-loan/ The Bills.com Savings Center, which you will find at the top of the page, is a great resource to help you find a lender for this type of loan.
If you do not own a home, the debt consolidation options available to you are somewhat limited. Most debt consolidation loan programs assume that the borrower owns a home, as the loans are essentially home equity loans used to pay of high interest credit card and other debts. Unsecured debt consolidation loans, especially ones that will actually save you money, are much more difficult to find. Frequently, consumers find that unsecured consolidation loans are not able to save them money, as the interest rates offered on these loans frequently exceed the interest rates offered on many credit cards. Even if you have made all of your payments timely on your credit accounts, the fact that several of your accounts are maxed out is likely pushing down your credit score, thus preventing you from qualifying for a low-interest
unsecured consolidation loan. One possible resource for you to explore is www.Prosper.com, a service that connects borrowers in need with individual lenders. Hopefully, your credit history is good enough that lenders will loan you the money you need at an interest rate less than that charged by your credit cards and other accounts.
Even if you cannot borrow enough money to repay all of your accounts, you may borrow enough to pay off your highest interest accounts, such as your computer and credit cards, using a lower interest unsecured loan. You should also contact your student loan lender to discuss way to lower you interest rate and monthly payments. Many student loan lenders will help borrowers who are struggling to repay their loans, so it is definitely worth a call to your lender to discuss your financial situation and what help, if any, they can offer you.
Bills.com offers a wealth of information about debt consolidation and other debt resolution options. I invite you to visit our Debt Help Resources site at http://www.bills.com/debt-help/ to read about the different options available to you. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
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