I Almost Signed Up for a Simple Path Financial Loan


Dear Steve,

I have $4,000 of credit card debt and I’m almost ready to signup for a Simple Path Financial loan but want to know if they are for real. I don’t want to hurt my credit score. They said I don’t qualify for a loan and want me to enroll in their debt consolidation plan.


The Simple Path Financial website seems to be primarily focused on loans but as you discovered, you were presented with a different solution.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

But the Simple Path Financial website does say that in their FAQs.

Simple Path Financial Debt Alternative FAQ

I have no idea what the specific alternative you were pitched was but it is not uncommon for people to tell me in similar situations with debt relief companies that they were presented with a debt settlement option.

If you are struggling to make your payments on your $4,000 worth of debt then that’s one thing to consider. However, if you don’t have any issue making your minimum monthly payment and you just want lower interest rates, then a credit counseling program is something to look closer at as well.

With credit counseling, you will make one payment each month to the credit counseling agency. That will feel like a debt consolidation loan. The credit counseling company will put you into special reduced interest rate plans. You will probably pay a nominal fee to the credit counseling company to participate in the program.

“Creditors typically need a payment of 2.5% of the credit card balance on a monthly basis or $20, whichever is higher. In cases of extreme hardship, some creditors (not all) can accept payment as low as 1.75% of the balance,” says April Lewis-Parks, director of education at Consolidated Credit.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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