September 6th, 2010 | 
Author: I am looking for a bank to do a consolidation loan. Currently make good money and would rather pay one person. If anyone knows any or person that will do ,000 for 00 a month please let me know. Also they must be able to accept Allotments.
I am looking for a bank to do a consolidation loan. Currently make good money and would rather pay one person. If anyone knows any or person that will do ,000 for 00 a month please let me know. Also they must be able to accept Allotments.
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Instead of doing a consolidation loan, which ultimately looks bad on your credit report (and probably has a higher interest rate than your other loans), why don’t you pay off your debt as it is? You didn’t mention how much your current monthly payments are nor the individual balances, but here’s a situational approach:
You have Car 1, you owe $12,000 at $250 per month @ 7% interest
You have Car 2, you owe $8,000 at $150 per month @ 7% interest
You have Credit Card 1, you owe $5,000 at $100 per month @ 15% interest
Your total payments on these would be $500 per month. You said you can afford $1200 per month, so why don’t you start with the lowest balance- $5000 credit card. Pay the minimums to your cars ($400), and then put $800 toward your credit card each month. You’ll pay off your credit card in about 5-6 months, then you’ll have "consolidated" your debts to two places. Now, focus on the second highest debt, Car 2- $8000. Over these 6 months it will have likely lowered to about $7000. Put the $800 you were putting toward the credit card to Car 2, You’re now making $950 payments to Car 2. You’ll have it paid off in 7 months. Now repeat for Car 1, at $1200 per month, and have it paid off in less than a year. You’ll have eliminated $25,000 in debt in about 2 years and you’ll own both of your cars free and clear.
To put the consolidation loan into perspective, I’m sure there are some sleazy businessmen that will give you one, but the best rate you’ll probably get is 11-12% with perfect credit. Also, if my example is close to your real life scenario, opening up a loan with a $1200 minimum payment compared to $500 in minimum payments will skyrocket your debt to income, making it harder to get another loan/mortgage if you need it, and will cause a lot of undue stress. Your job could be here today and gone tomorrow, if you lose it and you have to work for McDonalds, you want to make sure you aren’t going to lose all your stuff- keep your payments as low as possible and discipline yourself to make extra principal payments.