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Mark Cappel
UpdatedMay 16, 2024

Dear Bill, My name is Mike and I wanted to apply for a personal loan to pay down some credit card debt.

I want to apply for a personal loan to pay down some credit card debt. I have a Total of about $16,150 on my charge cards. I'm 47 Years old and I do not Own a Home. I do not have any other unsecured debts. I wanted to borrow about $10,000 to pay down the higher balances and higher rate cards. The rest of the balances are minor. I have a excellent payment history with all my credit obligations. I have applied and been turned down for consolidation loans from lenders. The main reason is balance to credit limits are too high. Some of the cards are at their max limits. All I want to do is move high rate balances to a lower rate loan. I can't seem to do that. I know my credit report is taking a hit with the inquiries from lenders. I'm current with my payments and never been late. I should be able to qualify for some financing. Can you recommend a online lender that can help me. I am not interested in debt relief or credit counseling due to the negative impact on my credit report. My options are limited at this point.

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 debt. 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. While you have made all of your payments timely on your credit accounts, the fact that several of the accounts are maxed out is likely pushing down your credit score, thus preventing you from qualifying for a low-interest unsecured consolidation loan.

Peer-to-Peer Loans

One possible resource for you to explore is Prosper or Lending Club, which are services that connect 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.

Loan Alternatives

If you cannot find lenders on Prosper or Lending Club, it may be time to consider other options, such as debt settlement, although most debt resolution options will damage your credit. Clearly, you need to rid yourself of this credit card debt, and I honestly do not think you will be able to do so without taking a hit to your credit rating. In my opinion, debt settlement may be the best option available to you, despite the fact that this type of debt resolution program will likely significantly lower your credit score. While your credit score will suffer in the short term, in the long term, you will rid yourself of this burdensome debt, which should allow you to rebuild your credit on better terms in the future. Keep in mind that delinquent accounts only appear on your credit report for seven years, so a debt settlement program should not permanently damage your credit rating. offers a wealth of information about debt consolidation and other debt resolution options. I invite you to visit the Debt Help Resources page to read about the different options available to you.

I hope this information helps you Find. Learn & Save.



Dealing with debt

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Housing debt totaled $12.612 trillion and non-housing debt was $4.891 trillion.

According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Collection and delinquency rates vary by state. For example, in District of Columbia, 20% have student loan debt. Of those holding student loan debt, 8% are in default. Auto/retail loan delinquency rate is 8%.

While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.