do you think my credit union will give me a consolidation loan?

Question

Ive only been with them for one week. I have had a steady job for 6 months now bringing in at least 450 a month. I have a credit score of 633 and a car to you for colladeral. I have 7500 in credit card debt that I have been trying so hard to pay off. do you think my credit union will give me anything near that so I can pay them all off and just have one loan payment then to think of?

Answer 1

You should definitely sit down and talk to them. Since you know your credit score, it can help the loan officer give you better advice without running a credit check.



Good luck.

Answer 2

A credit union would be more likely to extend credit to you at a decent interest rate. But it isn't wise to lump everything into one big loan.



All too often, people run the credit card debt back up and now have that big loan payment and the cards to pay. If you take out a loan to pay off the credit cards, you must be disciplined enough to not use those credit cards till the loan is completely paid off.



You could just work on paying off the credit cards. First make a very strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, etc. Take every penny you can squeeze out of that budget and put it 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.



Find ways to bring in more cash. Have a garage sale, collect alum cans, mow lawns, get a second job. Throw it all at the credit card debt.

Answer 3

Ummmm how will consolidating it help?





DON'T do debt consolidation. It just moves your debt around. It rolls high interest items AND LOW interest items into the same loan at a mid-range interest rate. It might lower your monthly payments, but that means it will take even LONGER to get out of debt. It also frees up all your lines of credit so you can simply run them up again! Finally, you often have to pay a loan origination fee.





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 probably 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. Take a sandwich for lunch. Cancel the gym membership.



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 follow it carefully.



Go check out Dave's website as well. Yahoo is blocking his site again, so take out the spaces in the following:

www. Dave ramsey. com

Answer 4

Consolidation is rarely a good idea unless you cut up your credit cards and never get new ones. The best thing to do is get yourself on a budget and stick to it. Figure out how much it takes you to live, cut out everything but the bare essentials for awhile and put the extra on your credit card debt. Don't charge anymore. Call your credit card companies and see if you can negotiate a lower interest rate. Also, start saving. Pay your savings like a bill and when emergencies arise, you will have cash to fall back on instead of credit cards.

Answer 5

If you have low credit score debt consolidation loan is not advisable as it adds to your debts by getting you higher interest rate.

It would be better if you take a debt management plan wherein a debt counselor will study your financial situation calculate your debts and income to pay off that debts. And based upon that will provide you with an affordable debt management plan whereby you have to pay fixed monthly payment.



Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.