HELP Would I be able to get a loan from my credit union to consolidate my rather high (8,000) credit card debt?
First off, I am a full-time college student. Ok, here’s my situation–I’m a little over ,000 in credit card debt. My monthly payments from all my cards combined add up to about 0, and every one of my cards (with the exception of one at 8%) have rather high interest rates (19%, 20%). Most of them are pretty close to being maxed out. Having to make these payments is really hurting me every month. I would like to consolidate all of my cards through a loan from my credit union. HOWEVER, due to having a bill that has been out in collections (0 electric bill) for the past 3 months, my credit score has gone down. I know you’re prob gonna say just pay it because it’s only a 0, but I wouldn’t even be able to pay that right now without ultimately cutting myself short at the end of the month. Would this mark on my credit inevitably prevent me from being able to secure a loan through my credit union?
Also, if that wouldn’t be able to fall through, do I have any other options at all? I am pretty stressed right now about finances and would really appreciate some educated/experienced advice with this type of situation. First hand experience with this would probably offer me the best advice to this predicament–what did you do to get out of debt? Is bankruptcy (which I know absolutely nothing about) even a good option, or is my debt small enough to where there’s still hope for another alternative? Please respond to this i am desperate to get out of debt! Thanks a lot in advance.
Dude, time for a 2nd job. Forget about consolidation. Just get a 2nd job and first pay off the $100 collections bill. Then pay off the smallest credit card bill. Each time you pay off one bill, apply that payment to the next smallest bill.
Pay only the minimum payment on each card except the smallest one. By focusing on one you can make progress very quickly. You should be able to pay off $8,000 in a year or less with a 2nd job.
June 22nd, 2010 at 4:37 amfor that amount you will need collateral and by having these maxed out your scores are going to be lower than you think
June 22nd, 2010 at 4:37 amdon’t even think about bankruptcy over a 100 dollar collection item. talk to a loan officer at your credit union. they will have the whole picture, your credit score, all open and closed accounts, debt to income ratio. if they deny you or you don’t feel comfortable with their answer you can also refer to a consumer credit counseling agency in your area for free or a nominal charge. good luck! =D
June 22nd, 2010 at 4:37 am