Thank you for your question about needing a $12,000 loan to settle your debt. Yes, it is possible to find a short-term personal loan for $12,000., which you can use for a variety of purposes, including debt consolidation. In general, personal loans are offered between 3-5 years, but you can pay it off early. If you can’t afford those monthly payments, then you need to look for a different debt solution.
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Do you need a $12,000 loan? Bills.com makes it easy to shop for a personal loan. Start by filling in your credit score, zip code, loan purpose, and the amount of loan you need. Check out different offers and click on the appropriate ones.
A $12,000 Home Loan
You suggested the possibility of refinancing home to get a $12,000 debt consolidation loan. A cash-out or home equity mortgage can be an attractive option if you are looking for a long-term loan at a relatively low-interest rate and low monthly payments.
In general, your total loan to value ratio (LTV) cannot exceed 80%. To compute your LTV, add $12,000 to your current mortgage and divide the result by your current home value. For example, if you owe $150,000 and your home is worth $225,000, then your current LTV is 67%. With the new loan of $12,000, your updated LTV will be 72%,
The two main drawbacks to this option are the upfront fees and the long-time to close a loan.
A $12,000 Auto Loan
You mentioned securing a loan with your vehicles. An auto refinance loan, otherwise known as a title loan, is allowed under the law in many states. However, title loans are expensive. You are also going to need equity to qualify for an auto refinance loan. Furthermore, title loan lenders can be very aggressive in collecting these loans. Missing a payment means repossession of your vehicle.
Other Alternatives to a $12,000 Loan
If you are finding it hard to qualify for a $12,000 loan and you are suffering from financial problems, then there are other debt relief solutions. Some possible solutions include a credit counseling and debt management plan, debt settlement, and even bankruptcy. I suggest that you try Bills.com's innovative tool, the Debt Payoff Calculator.