Borrowers face new barriers on HELOC loans Tulsa World
Thanks to the economy and the continued drop in real estate value, and the worsening job market and tighter credit requirements by lenders, home equity loans and credit lines aren't as easy to get as they once were, says the BankRate.com website.
Borrowers must have equity, good credit and adequate income relative to debt. Interest rates on home equity loans are unappealing to homeowners. Many homeowners want to hear "your loan is approved," but for most, this type of loan, allowing homeowners to borrow against the equity in their homes, is hard if not impossible to get.
Typical barriers are lack of equity, impaired credit and inadequate income to support additional borrowing. Of those, negative equity, also referred to as being "upside down" or "underwater in your mortgage," may be the most daunting hurdle to jump.
CoreLogic, a real estate data service in Santa Ana, Calif., a leading provider of information, analytics and business services, in June released
Money Management : How Do Debt Consolidation Loans Work?
Debt consolidation loans allow consumers to pay off credit card bills with the help of a bank loan. Consumers should be mindful not to go back ...
Bank loan or debt consolidation program for credit card payoff?
Due to a family tragedy, my husband and I are currently in $26,000 of credit card debt. All of the payments are current and the cards are paid on time with the accounts still open (we are not still charging, though). We are looking to seriously pay this down before the interest eats us alive. My husband wants to take out a bank loan and pay the cards off that way, but I am wondering about the debt consolidation programs you hear about (I know some of those are scams and some are real). Any advice or experience?
A bank loan will require some form of collateral, like a house. If you can't pay the loan, you lose the house.
Debt consolidation will trash your credit score.
You are better off negotiating with each credit card. Mention to them that you may have to declare bankruptcy due to the high rate and could they lower the rate. In most cases, they would do that.
First look at the fine print on your credit card. Some credit cards will have a penalty of paying to much to soon.
If that's not there, then you probably want a bank loan. Again, you might have a penalty of payng the bank back too soon. The bank may loan you money for less than a debt consolidaton company.
If you can't get a bank loan, then you could alway try a debt consolidation company.
A consolidation loan will not hurt your credit rating.
If you do not qualify for a full consolidation go for as much as possible and resolve outstanding high rate cc debt as soon as possible.
Debt consolidation programs are often registered on your credit report and should not be used unless you can not resolve the problem on your own. Entering into a debt consolidation program should be a last resort.
Credit card debt consolidation counselors are experts with a good knowledge of debt management, budgeting and behavioral patterns of credit card holders. These services are vital for those struggling to manage their credit card debts. Also called credit counseling or debt counseling the credit card debt consolidation counseling brings immediate relief to a credit card holder.
A person seeking credit counseling can get it from two types of organizations. The professional or commercial organizations, and the non-profit organizations. As depicted by its name or categorization, the commercial organizations charge money for their credit counseling sessions and consolidation help on the other hand the non-profit organizations offer free of charge services. Just because the non-profit organizations are free, it doesn't undermine their quality of service. The persons associated with such organizations are thorough experts and have lived the trauma of being under credit card debt themselves and hence bring their vital experience to the credit card holder.
Read more from: http://www.credit-card-gallery.com/article/353,Credit_card_debt_consolidation_and_credit_counseling_great_tools_to_get_rid_of_credit_card_debt
which bank we should contact for debt consolidation loan?
we have 3 credit cards with 15K debt and paying average 15% APR ...and we think we should try for debt consolidation personal loan which doesn't require any collateral or home equity...so based on experience can you please suggest which bank we should contact for such loan?
you can contact Citifinancial, ge money,hdfc,icici...all these do debt consolidation..your probs will be solved,, but be choosy in your interest rates, coz they will be diff for diff banks...
http://best-loans.awardspace.com/Loan-Consolidation.htm
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
I am a college student in debt 5000 dollars. Debt consolidation? Loan from the bank?
PLease help what would be the best move for me?
I will assume this is not a student loan. If it is a student loan, you want to consolidate when you are done borrowing.
You first step is to create a realistic budget that will allow you to spend less than your income. Then you know how much money you can put toward your debt.
If your debtors are credit card companies, contact them and ask for a reduction in your interest rate. This will allow you to pay off the loan faster with the same size payments.
http://imlive.com/vippath.asp?host=y&hnumber=288060
I am $12K in debt. Which bank is best to get a debt consolidation loan with? I dont have collateral.?
i live in NY.
its credit card debt.
Contact each credit card issuer and ask for a lower rate. Suggest you will transfer the balance to a lower rate card if they don't. If you are actually spending less than you earn, you can pay them off directly and don't need to consolidate. If you are spending more than you earn, consolidating won't help.
If you get offers here of a loan, if they want an up-front fee to get the loan, beware, they're scams.
http://badcredits.awardspace.com/Loan-Consolidation.htm
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
Make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, etc. Put every penny you can squeeze out of that budget on the highest interest rate credit card, while making minimum payments on the rest. When the highest rate card is paid off, move to the next, till they are all paid off.
You could also figure out was to bring in extra cash. Get a second job -- pizza delivery has flexible hours. Have a garage sale.
The more money you throw at that debt the faster it will be paid off. You should be able to pay it all off within 2 or 3 years. Plus you'll have a nice credit history.
Is getting a debt consolidation loan good to do, and what bank is the best to apply too.?
Well, borrowing hasn't worked so well for you so far. Why consolidate?
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follwo it carefully.
Go check out Dave's website as well.
www.daveramsey.com
Debt consolidation companies are all scams. They rip you off to consolidate.
Start an automatic payment and start snow balling payments to pay off your debt.
Start a business plan to make sure you stay on target, too.
Go to his web site www.daveramsey.com or go to Barns and Nobel and look for his book.
You must first start with where does your money go?
Make a budget and trim the fat.
Next list the bills smallest to largest. Now concentrate any extra money you can into the first bill. Once paid, used this money totally in addition to the money you put for the second bill. And continue. It does work. I've done it all my life before I heard of Ramsey.
But if credit cards are you problem, stop using them, and pay them off. Use cash to buy stuff you need, and stop buying things you want---at least for the time being.
This is getting help from real people without the use of banks or credit card companies. Good Luck!
http://www.prosper.com/join/lzc5wh
what is your opinion on a debt consolidation loan??
i am looking to possibly get a debt consolidation loan from a bank for under 10,000 to pay off a bunch of little high interest cards. what is your opinions on these kinds of loans. is it worth it? how exactly do they work??
If you are looking to consolidate debt, first you should think about how you got into debt. If you haven't changed your spending such that you can avoid more debt, it doesn't make any difference if you consolidate your existing debt only to use the cards some more and go further into debt.
If you had a one-time occurrence or are already paying down debt, a consolidation loan at a lower, fixed rate may be beneficial. It will give you a fixed time period for when you will be out of debt and your rate won't change over the life of the loan.
You might consider person-to-person borrowing from the following website. People who are consolidating debt can often get better rates than banks for a 3-year fixed rate loan. If your credit is decent, lenders can bid on your loan request in an auction format and that will help you get a great rate. Check it out.
Does a Debt Consolidation Loan hurt your credit if you close the accounts and pay just a loan to a bank?
No, if anything it should inprove your credit.
Know of bank/lender that will work w/ me on a debt consolidation loan though I have a high debt/income ratio?
I am trying to get a debt consolidation loan to pay off all my credit card debt. Most are telling me that my debt/income ratio is too high... my credit score is good. I do not want to do a debt counseling program or something like that... just anyone or bank that is understanding and will help me pay these off? I know the debt/income ratio is high... but I want to pay off that debt and have one loan. They won't approve me because I already have too much debt... so what's the point of trying to consolidate when they are afraid of the debt I have? Anyone else been in this situation? Please help! Thank you!
From a banks perspective I can tell you that debt consolidation loans are not attractive and if your DTI is > 36% good luck finding someone to consolidate especially when it's unsecurred. If you own a house or other substantial property I suggest using this to secure the loan...you need to look at it from the bank's perspective. You have tons of credit card debt and a high DTI, right now the credit card companies are at risk, not the bank...why would they want to assume that risk at a reasonable rate and not be protected at all? Put a substantial ammount of collateral on the table, perferably twice the value of what you're asking for and go from there. If you can pull that off they might go for it, hell I'd think about it and I'm a commercial lender at a bank. Good luck!!!
Anyone know any good way to get a decent debt consolidation loan?
I want to get a debt consolidation loan, WITHOUT using my home equity, but they are telling me my credit score is great, but by ratio is too high. Well, I want to consolidate all the CC debt I have, but it's running me in circles. What's the point of trying to get a consolidation loan if they won't lend it to you because you have too much debt? Does anyone know of ANY bank or anywhere I can turn to that understands and can try and help me? Thank you for your help!
Brad;
You say that you don't want to use your home equity as collateral for a loan so I am going to assume that you own a home and have equity in it. If this is the case then perhaps you should consider a home equity loan in order to consolidate your CC debts at a lower interest rate. You will likely be able to further reduce your monthly debt payments by stretching out the term of the loan. In addition, if you live in the U.S. the interest that you pay on that home equity loan might be tax deductible. Find more information on this here... http://www.debt-elimination-guide.com/debt-consolidation-home-loan.html
If you don't have any home equity then your options become limited. Your best bet may be to contact your credit card company(s) and ask for a reduction in the amount of interest you are paying as well as a reduction in the amount that you are paying each month. Most CC companies will work with you on this and you can sometimes achieve results similar to what you were hoping to achieve with a new loan. The credit card companies would rather have less interest and a slower payback period than a total loan write-off. There are also companies that can help you with this if you don't feel comfortable doing it yourself. In fact, some will give you a free debt analysis before you commit to anything.
There are some other options available as well, but it doesn't sound like they would be suitable for you at this time. If you would like a recommendation on a few good companies and information on other options you can find that here... http://www.debt-elimination-guide.com/debt-elimination-options.html
Regards
Bruce
Does the Army offer any type of debt consolidation loan for new recruits? (read first)?
I'm joining the army, and I've got about 4k in debt (mostly old hospital bills)... I was wondering if the army, or even the armed forces bank, offers any type of debt consolidation loan so that I can get this paid off easier? My credit isn't the best... but on the other hand, I'll be in the army, so it's not like I won't have a job to pay the loan back with...
debt consolidation bank loan - News
|
Clearing up some debt confusion - Allentown Morning Call Clearing up some debt confusion Debt consolidation. This means taking out a new loan to pay off your smaller debts, thereby ending up with one new payment that is less than the sum of the |
|
Heads to now start rolling at other banks - Irish Independent Heads to now start rolling at other banks As bad debt losses continue to mount very few of the chief executives of the Irish-owned banks are likely to hang on to their jobs. |
|
Forecasting the future for the financial industry - New Mexico Business Weekly Forecasting the future for the financial industry That debt, combined with a weak housing market and a rise in unemployment, has meant everything from the closure or consolidation of lending institutions to |
|
What Wells Fargo plans to do on a bigger stage - San Francisco Chronicle What Wells Fargo plans to do on a bigger stage Q: In the investor presentation, the company said the consolidation will allow $5 billion in annual savings. Where will that savings mainly come from? |
VEB Thrust Into the Role of Savior - The Moscow Times
The Moscow TimesVEB Thrust Into the Role of Savior The banking sector is expected to go through a wave of restructuring and consolidation in the coming months, with the stronger players remaining,
|
