My home belongs to my brother, sister, and me. It is paid for, however we have an equity line of approx. $10,000 on it which I pay each month. The house is in my sister's name, however if we should sell, it will be divided between the three of us. I am in school and will probably stay in this house at least another two years. I have credit card debt totaling $2739,00. The interest is high on one of the accounts, it is Dell Preferred @ 29.99%. I simply want to consolidate these accounts into one loan with a lower interest rate and one payment. I would need to do so without it being a home type of loan.
Your only other option for a loan if you do not want to involve your home would be an unsecured personal loan. Personal loans are risky for lenders due to their lack of security and relatively high default rate; therefore, most lenders charge high interest rates on personal loan products, especially those for people with credit problems. Many consumers find that using an unsecured personal loan to consolidate their debts can actually cost them more than continuing their regular debt payments.
If you can qualify for a personal loan with an interest rate lower than the average interest rates being charged on your current debts, paying off these debts with an unsecured debt consolidation loan could improve your financial situation. The problem with this type of loan is that, unless you have very good credit, the interest rate charged for an unsecured personal loan may actually be more than you are currently paying for your other bills.
A much cheaper option would be to refinance your home equity line (or extend your current HELOC). Because an equity line is secured by the home the interest rates will be much lower than a personal loan, but do not forget to check into the prepayment clause in your existing line of credit before you choose a refinance option.
Another possible alternative loan resource you may want to explore is a peer-to-peer loan where private lenders lend to borrowers. A private lender may be more willing extend you a loan than a traditional bank. If you are unable to find a loan that fits your needs, you may want to look into alternatives for repaying your debt such as debt settlement or credit counseling. Finding assistance with your debts should free up money to spend on other expenses, like your child’s school expenses. Bills.com offers a wealth of information regarding the various debt help options available to consumers. Visit Bills.com’s Debt Help for more information.
I hope the information provided helps you Find. Learn. Save.