Debt Consolidation :: Loan Consolidation :: Refinance Loans :: Student Loan

Debt consolidation with new loan?

2007-08-17T01:17:00.000-07:00

I'm trying to pull myself out of some severe debt, and have been looking
for a way to consolidate my too numerous credit cards. Yesterday I
received an offer in the mail from my Union which I think may be
something of a boon, but I'm having a hard time understanding what's
behind it.

I'm offered the opportunity to "ask for a revolving loan..." No
collateral needed, no application fee, fixed interest rate, low monthly
payments. Then there's a chart offering several advance amounts:

RANGE OF ANNUAL PERCENTAGE
ADVANCE NUMBER OF RATES & MONTHLY PAYMENTS
AMOUNT MONTHS 18.99% 13.25%

$ 2,500 36 $ 92.00 $ 85.00
$ 5,000 60 $ 130.00 $ 115.00
$ 7,500 72 $ 176.00 $ 152.00

etc. Now, just to be certain this really is a good deal, can someone
explain to me just what the last column means? That the loan company
will decide which rate I deserve, so that eg if I take out the 7.500
loan and am fortunate enough to merit the 13.25% rate, then I'll only be
paying $152, but if I don't make the cut on that, I'll have the higher
rate and payment?

Second, how good do these numbers look to people? Finally, my debt is
rather higher than the highest amount listed on the offer, but the form
suggests that if you call up, you can get a higher amount. Since
obviously I'd like the lowest interest rate possible, would asking for a
bigger loan jeapordize this possibility? Does anyone have experience
asking for this sort of a loan?

Like I say, this would be a step towards consolidating my credit card
debt and lowering my payments to something manageable as I set to work
getting my house in order. But my indebtedness is well over the
apparent limit for this loan, so maybe I should just cover one or two
credit cards; then maybe down the road I'd be able to increase the size
of the loan (if this is possible). While my credit is of course
overextended, obviously, my credit history is I believe quite good.

Rather than try to counsel on the specifics of that offered loan, may I
offer some general advice? (Remember that it's free, so it may be worth
what it costs.)

First, I am generally suspicious of debt-consolidation loans. I don't
mean that I think the loan companies are scamming you (though some do),
just that it's dangerously easy to make your total debt load worse in
that way. The effect is to lower the total monthly payment, but at the
cost of extending the debt further out in time. There are some
circumstances where that is a good thing, and I can't know whether that's
a good thing for you.

But do be aware that by lowering the monthly payment you will actually
end up paying out more money total. Oversimplified example: if you had
$100 a month to pay and there was 12 months left, that's $1200 till
you're debt free. If you refinanced that loan (through debt consolidation
or other means) to a $50 a month payment (half the $100) at the same
interest rate, the new time would be more than 24 months (more than twice
the 12 months), so that you'd end up paying out more than $1200 till debt
free.

One very important thing to check, as you know, is the interest rate.
Look at the APR on each of your credit-card statements. If you can do a
debt consolidation such that the interest rate is lower, then you may be
doing a good thing. Just be very realistic about setting your new monthly
payment -- not so high that you'll have trouble meeting it, but high
enough that your debt won't stretch out far into the future. Be sure
to make allowance for unexpected bills -- you can expect to have
them, even if you don't know when or exactly what they'll be for. Also
resolve to have some discipline and not use the credit cards again until
the loan is paid off. (That can be very hard, I know.)

You could certainly call up the people who made this offer and ask your
questions, in advance of making a formal application. They won't tell you
whether you could definitely get the loan at the 13.25% rate. But they
should be able to explain, in terms you can understand, how they decide
which rate to offer on a given loan. My hunch is that it probably depends
at least partly on the term of the loan. Typically, interest rates for
short loans are lower than interest rates for long loans. Merely making
these inquiries should not have any effect on your credit history -- tell
them you are thinking about making an application, you have general
questions, and you don't feel comfortable getting into your personal
information at this time. It's okay to tell them that the purpose of the
loan would be bill consolidation.

The questions you ask are good ones, but there are more questions you
need to ask. It's good that you recognize your debt is getting too big,
and that you are trying to do something about it before it becomes
overwhelming.

Here's my very strong suggestion: many cities have a free consumer credit
counseling service. Sometimes it's a private non-profit organization,
sometimes it's government sponsored. This organization works with
consumers and creditors to help work out repayment plans. A good debt
counselor will also educate you about how debt works, how to understand
your options better, how to make informed choices, and so on. Look in the
phone book, or call your city department of consumer affairs, and ask.
Also check with your union: access to such a service might be part of
your union benefits. Be careful to get only an actual credit counseling
service: some unscrupulous loan companies operate as pseudo-counseling
services but their real goal is to steer you into taking out a loan with
them.

Auto Loans

2007-08-09T00:30:00.000-07:00

Regarding several questions raised about auto loans:

I wouldn't get a car loan JUST for the purpose of obtaining credit, but if you are in need of developing your credit record, you may want to get one and pay it off early. I do not know, however, how long it takes before the loan will be reported to the bureau.

You will want a simple interest loan, rather that one which calculates payback based on the Rule of 78. Rule of 78 loans pay back mostly interest in the first part, so you may find yourself still owing much of the principal if you try to pay it off early. Try a good bank or credit union for help. I don't think most dealers offer simple interest loans directly. Dealers, by the way, buy loans at some rate (the buy rate), say 11%, then write the loan at perhaps 11.8%, so they keep the difference as profit. And don't believe the crap that credit unions don't report loans to the bureau.

If you happen to know a loan officer that you trust, ask about the time it takes for a loan to be reported to the credit bureau. I dont know. I would advise against asking for advice from the finance managers at dealers. They get paid for selling loans, alarms, paint sealers etc, and are not necessarily that knowledgeable about the mechanics of lending.

Hope it helps.

Loans scottsdale teletrack payday Loans Loans Rockford Loans with bad credit

2007-07-14T18:00:00.000-07:00

Idaho Loans refinance Loans mortgage refinancing Loan rate Loans for business consolidate student Loans mortgage Loans construction Loans Loans san bernardino bad credit Loan mortgage Loans consolidate development Loans Loans by 80 20 Loan Loans mortgages advance cash Loans monroe Loans Loan cash payday Loan Loan Loans private Loan consolidation military Loan Loans elizabeth financing Loans Loans torrance Loan payday Loan Loans credit cards info Loans Loans rates denver Loans mortgage motel Loans Loans Loan Loans naperville check Loans car Loans for bad credit Loans boat debt Loan consolidation Loans st paul no doc Loans Loan processing sba Loans bad credit consolidation Loan auto Loan interest bankruptcy car Loan Loans hartford bad credit Loan Loans santa rosa Loan online payday cash Loan nj Loans payday Loans cash Loans michigan Loan lending Loans and finance payday advance Loan bad credit cash Loan Loans new orleans cheap car Loan unsecured Loans online payday Loans Loans quincy auto Loan online quick Loan cash fast Loan used car Loans student bank Loan cash advance Loan no fax consolidation Loan unsecured direct student Loans auto Loan credit Loans Loan car bad credit compare Loans poor credit Loans mortgage debt Loan mortgage Loan lead boat Loan fast payday advance Loan investor Loans banks Loans Loans canada bad credit Loan consolidation bad credit signature Loans Loans for bad credit people car title Loan restaurant Loans fax payday Loans cash advance Loans auto Loan payment calculator real estate Loans jumbo Loans cash advance Loan Loans poor credit refinancing Loans student Loans consolidate bank auto Loan boston mortgage Loans Loans augusta check payday Loans online cash Loans fixed Loans dallas Loans consolidating student Loans bad credit auto Loans construction Loan california mortgage Loan arizona Loans online auto Loan auto Loan rate student Loans pioneer Loans bad credit auto refinancing Loan bad Loans Loans finance Loans business bad credit Loan refinance Loans company Loans staten island wisconsin Loans Loans service quick cash Loan payday Loan online Loans alabama Loans companies Loan finance mortgage fast payday Loan mortgage Loan company washington Loans commercial mortgage Loan mortgage Loan processing Loan mortgage second refinancing auto Loan mortgage Loan lender Loans secured uk Loans the Loans Loans lenders fast cash Loan consolidation Loans education Loan consolidation bad credit debt consolidation Loans car Loan with bad credit payday Loans credit fremont Loans bad credit auto Loan auto Loan no credit payday Loan Loans anaheim bridge Loan graduate student Loans pay student Loans high risk Loans credit payday Loans mortgage refinance Loans bad debt consolidation Loan cash advance payday Loan school Loan second Loans student Loans consolidation homeowner Loan Loans for college student Loans with bad credit jumbo mortgage Loan instant payday Loan Loans with advance cash Loan payday easy Loan car Loan title second mortgage Loan new car Loans no fax Loan small Loans guaranteed Loans no faxing payday Loan bad credit car Loans apartment Loans acs student Loans direct Loans Loan subprime quick cash Loans sacramento Loans commercial Loan college Loans Loans buffalo commercial Loans ohio Loans Loans bad credit commercial real estate Loans Loans fort collins investment Loans Loan debt consolidation rv Loans cash Loan Loan Loan Loans fast pay Loans faxless payday Loan quick cash payday Loan small Loan mortgage Loan quote university Loans Loans houston Loan financing payday Loan Loans center mortgage refinance Loan car Loan faxing payday Loan Loans refinance Loans virginia internet Loans Loans bankruptcy unsecured Loan bad credit rate Loans no credit check payday Loan online Loans credit card consolidation Loan fha mortgage Loan paycheck Loans va Loans Loan secured Loans louisville bad credit debt consolidation Loan nevada Loan Loans salem signature Loan faxless Loans Loans independence tulsa Loans car title Loans Loans texas raleigh Loans mortgage easy payday Loan Loans line point Loans consolidation Loan Loans miami credit score Loans payday Loan quick stated Loans best Loan mortgage countrywide Loans building Loan used car Loan consolidation debt Loans florida mortgage Loan Loans money education student Loans vehicle Loan bad credit car Loan hawaii mortgage Loan Loan options Loans online unsecured bad credit Loan automobile Loan bill consolidation Loan auto Loan payment no fax payday Loan Loans austin unsecured Loan Loans bakersfield get Loans new mortgage Loans car Loan financing mortgage Loans texas bad credit Loans westminster Loans Loans kansas federal student Loans Loans alpharetta student Loans for bad credit fast cash Loans credit Loan consolidation online Loan mortgage Loan rate no fax payday Loans personal Loans uk government Loans payday Loans fax minneapolis Loans Loans for bad credit Loans america bad credit debt Loan Loan used car express Loans Loan calculation instant bad credit Loan bad credit payday Loan in Loan payday money payday Loan Loans fast cash educational Loans fast Loan title Loans payday advance Loans credit consolidation Loans bank Loans mortgage secured Loans Loans toledo auto Loans for bad credit guaranteed Loans bad credit government student Loans boat Loans Loan payment mortgage Loans stamford Loans westminster new auto Loan fast cash advance Loan bad credit student Loans fax payday Loan consumer Loans auto Loan rates savings Loans business Loans quick payday Loan short term Loans auto bad credit Loan auto calculator Loan for mortgage Loans school Loans cheap Loans payday cash Loan bad credit mortgage Loan Loans joliet payday Loan fast advance payday Loan general Loans Loan car credit Loan consolidation Loan bad debt Loans refinance car Loan Loan bad credit student Loans bad credit Loans atlanta land Loans college Loans consolidation hotel Loans va Loan student bank Loans cash payday Loans Loans cash advance quick Loans mortgage Loans bad credit graduate Loans auto financing Loan Loans charlotte Loans and bad credit mortgages Loans auto Loans low cost Loans foreclosure Loans poor Loans military Loans signature Loans auto title Loan private Loans Loans no credit check kansas mortgage Loans bad credit Loan for car instant payday Loans payday Loans no fax Loans debt Loans denton advance Loan jumbo Loan used auto Loan Loan refinance debt consolidation Loans for military debt Loans consolidating Loans payday cash Loans federal Loan consolidation faxless Loan Loan instant auto Loan com bridge mortgage Loans school Loan consolidation Loans consolidation improvement Loans new mortgage Loan Loan for debt consolidation private student Loans best car Loan boston Loans Loans quick college student Loans no teletrack payday Loans car Loan bad credit auto car Loan no faxing Loan mortgage Loan used car Loan rates finance car Loan advance Loans Loans el paso education Loans refinance Loan bad credit cheapest Loans Loans detroit second mortgage Loans installment Loans Loans san francisco parent Loans auto credit Loans Loan till payday rv Loan title Loan alternative student Loans fha Loans Loans columbia 125 Loan faxless payday Loans fixed rate Loans residential Loans Loan for car Loans Loans Loans washington Loans lansing payday Loans online Loans for students auto Loan refinance Loans anchorage Loans richardson lending Loans lender Loan no credit check Loans cash Loan online hour payday Loans Loans the uk secured Loan company Loans lot Loans debt consolidation Loan mortgage Loans best business Loans bad credit bad credit motorcycle Loans Loans sarasota secured Loan Loans green bay car Loan rates Loans oakland mortgage interest Loans Loans knoxville short term Loan military payday Loan denver Loans Loans cambridge refinance auto Loan Loans tacoma credit Loans Loans boston instant Loans no credit Loans no faxing Loans new car Loan auto title Loans Loans phoenix Loan hawaii Loans iowa Loans sioux falls startup business Loans Loan consolidation credit advance payday Loans Loans alexandria online payday Loan Loans best payday Loans payday Loan advance bank Loans cash Loans Loans fresno debt consolidation Loans easy Loans Loans abilene auto Loan calculator no fax cash Loan bad debt consolidation Loans Loans unsecured Loans jacksonville paycheck Loan cash Loan payday fast Loans Loans baton rouge automobile Loans bad credit mortgage Loans motorcycle Loans car Loans Loans portsmouth