“Dear Steve,
I have around $20,000 in credit card debt at present and having a very difficult time maintaining even the minimum payments. I have 8 credit cards with most of them at 29%.
I am not sure if I should try contacting each credit card or going with a credit consolidation company. I have heard so many bad things about these companies that they really don’t do anything for you and end up taking your money at a time that I can least afford.
I own my home with around $50,000 equity and have an income of my social security of $1365 per month and $750 from a pension.
Can you recommend a solution or a good debit consolidation company that can help me.
Sincerely,
Steve”
The Answer:
Dear Steve,
Since you did not say that you were struggling to pay the bills then my first thought would be for you to look at a real debt consolidation loan from the peer-to-peer lending network, LendingClub.com. I happen to be one of the thousands of small investors that helps other people fund their loan needs. If you decide that will be good for you then I might even be one of the investors in your loan.
Before we jump to a solution that might be more extreme I think you should check the rates and terms from LendingClub and see if that will reduce your interest rates and give you a payment you can afford.
Once you do that, come back and post an update in the comments section and let me know how it went.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.