Ask The Get Out of Debt Experts Debt Consolidation Loan

I Want to Get Out of Debt But Not Hurt My Credit. – Marie

“Dear Steve,

I currently owe $18,000 in credit card debt and my payments total over $500 a month. I also have a car loan of $11,000 and am paying $214 a month.

I am current on all my bills and have never made a late payment but I am starting to get overwhelmed and will not be able to keep up with the payments for much longer. I’ve called my credit card companies to see if they can help me by lowering the interest rates and have even asked for a credit limit increase to try and transfer my credit cards onto one payment, but haven’t been successful.

I called one of my credit cards (US Bank) to see if they could maybe put me on a short term payment plan to lower my monthly payment but I was told that because my account is not past due or in collections that there is nothing they can do to help. Now I was just blown away by that. I don’t understand why they are unwilling to help someone who actually is not past due and wants to pay off the debt.

I am at a loss of what to do. I’ve looked at the Debt Consolidation program offered by Consumer Counseling Service but they want me to close all of my credit card accounts, which I understand why they want that, but that would dramatically decrease my credit score.

My question to you is that I am needing advice on what would be the best course of action for me. I don’t want to file bankruptcy nor do I want my accounts to go past due in order to get help. I’ve applied for a loan through Citifincial but was denied because I don’t own a home and have no collateral for them. I don’t want to keep applying for loans because I know that too many inquiries will also lower my credit score. Please, any advice will be appreciated.

Thank you,


Dear Marie,

Creditors typically won’t offer you assistance to get out of debt because as long as you are making the monthly payment and not behind you are right where they want you.

I think the best place to go for an unsecured, fixed rate, debt consolidation loan is LendingClub is a person-to-person lending network that cuts out the banks and offers lower interest rate loans based on your credit score.

Check out and see if the loan offered to you will do the trick. I would not worry about one more credit check because as you said, you are becoming overwhelmed and you’ll fall behind soon if something positive does not come through.

If you do apply for the loan and it is listed on the LendingClub site for funding, let me know how to find it in the comments below and I’ll gladly help to fund it.

You can borrow up to $25,000 as long as your credit score is 660 or better.

If the thing does not work out for you then we’ll have to move on to Plan B, but any Plan B will have some credit consequences.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

Steve Rhode

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.


    • Marie,

      The next step would be for you to find a local bankruptcy attorney and go talk to them. If LendingClub rejected you your credit must be below their standards and a credit counseling program is not affordable for you by your own admission.

      I need for you to speak to a local attorney about bankruptcy and learn what bankruptcy would mean for you and then come back and check in.


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