Archive for Category 'debt consolidation loan', page 2

Question:  I have found myself in a position with payday loans,etc after filing bankruptcy 9 years ago. I am interested in cleaning up my entire credit bureau and wiping a clean slate. Due to unforseen circumstances a few years ago I found myself borrowing from one payday company to pay another and since got myself into a bid. I am interested in the best way to fix and pay what I can so that this does not destroy my marriage once and for all.

Answer: There are a number of possible ways to deal with your money problems.

The first option will be to cut your expenses and place yourself on a strict budget, and then use the savings to repay the payday loans.  If the amounts are relatively small, this is a good option.

If you need help with this process, you could contact a non-profit credit counsellor for assistance.

If your credit is reasonably good, another option would be to go to the bank and get a debt consolidation loan.  Since your bankruptcy was nine years ago, it may be possible to qualify for a debt consolidation loan.

Question: My husband and I owe $96,500.00 in unsecured debt, and an additional $40,000.00 in secured debt. We do not own our own home, we rent.
We have never missed a payment nor have we ever been late on a payment. But we work to pay our debts. There is no money left over. Only the minimum is paid on our bills each month so we aren’t getting anywhere.
What would you recommend?

Answer: You have five choices.

1. Keep working hard, cut your expenses, and use whatever money have to pay off your debts, starting with the highest interest rate debts.  If you can only afford minimum payments, this startegy won’t work.

2. Get a consolidation loan from a bank.  If you have good credit, you may be able to consolidate your unsecured debts at a lower rate of interest, so that more of your payments go towards principal, and you repay your debts faster.  However, it is unlikely a bank will lend you $96,5000 with no collateral.

3. Do a Debt Management Plan through a non-profit credit counsellor.  To repay $96,500 over a 5 year period would cost over $1,600 per month, so credit counselling only works if you can afford it.

4. File a consumer proposal through a licensed trustee in your area.  In most consumer proposals you are able to repay less than the full amount owing, so in your case it may be possible to pay, say, $500 per month for three to five years to eliminate your debt.  Certain rules apply, but if your debts are joint with your husband, this may be a good option.

5. The final option is personal bankruptcy.  Bankruptcy eliminates your debt, but the payment you are required to make each month is based on your income.  The higher your income, the more you pay, so this may or may not be the correct option.  For more information, contact a licensed trustee in your area. 

There are options, so we strongly suggest that you investigate your options, and decide on the solution that’s right for you.