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Question: Idea's for a friend who needs a different type of cosolidation loan or something to help!?

(Posted by: LLL on 2009-09-22 08:37:51)

I am concerned for a close friend. He is 35 and has a credit score of 650. He made some mistakes as a kid then consolidated years ago. He now has a consolidation loan with $13000 remaining but it is at 28 % HOLY > > > > > This is why I'm concerned.. If anyone has suggestions on how he could change this situation so he is not paying 28 % it would be greatly appreciated!!

Posted by: JB on 2009-09-22, 09:46:05

Your friend has a few directions he might be able to go in, 1. Put together a needs only budget. I'm talking bare minimum each month in spending. See what he has left over after that and put it all towards the debt. At 28% interest he would have to pay $405 every month for the next 60 months to pay it off. 2. Get a different loan with better interest/ terms to pay it down. If he could find someone to loan him 13K at even 10% interest that would take his payment down to $345 for a 60 month payoff. 3. Renegotiate the terms of the current loan. Perhaps the lender at 28% is willing to rework the loan. Usually they are happy to extend the terms out but if they don't do anything with the interest rate then it's really going to cost a lot more and take a lot longer to pay off. May be better with option 1 or 2. Option one is the option he has the most control over. For option 3 he might employ the services of a credit counseling agency. Depending on who the lender is they may or may not work with Debt Management firms to negotiate but he can give it a try.

Posted by: Anna on 2009-09-22, 08:52:16

Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.

Posted by: Stephen Wood on 2009-09-22, 15:10:38

Hi Stephen Wood,Do you need loan? if yes I will advise you to contact Mr. Mike Franklin he can help you with all kinds of loan no credit check, monthly repayment,interest rate is 4%,no consigner, you can contact him today through email mikegloballoanhouse@yahoo.com