Jasmina
“Dear Steve,
I have $46,000 in debt. Three are personal loans and four are credit cards (reason: in last two years I had four deaths in my family, funeral expenses). I don’t have any late payments and all my accounts are current.
Is there anyone who offer consolidation loan for so high amount of debt for nonhomeowners. Also, all of these debts are on my and my husband name. Annual income $72.000.
If I can put them all in one I can save a money in 6 months for a downpayment to buy a house. Right now we pay for rent $650. I am from Bosnia and live here for eight years only, so I don’t know a lot about this and any advice will be helpfull. Thank you
Sincerely,
Jasmina,
Saint Louis“
Dear Jasmina,
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I’m so sorry that you’ve had to deal with so much loss, both emotionally and financially. Your situation and story is sad, but sadly not all that uncommon.
I understand your desire for a debt consolidation loan. It is the solution that many think about when trying to get out of debt. The honest reality and chances of you finding a reputable lender to give you an unsecured debt consolidation loan are slim to none.
Especially in this economic climate, lenders are more nervous and skittish than usual. They went from being really loose to now, really tight and stingy with their money.
The only guaranteed debt consolidation loan out there would be to claim a massive number of tax exemptions on your withholding, you’ll get more in your paycheck that you can use to pay down debt and then at the end of the year you’ll owe the IRS money for all the taxes you didn’t pay. If you’ve never had a defaulted repayment plan with the IRS or a current payment plan now, they’ll let you pay the tax back over time at a low interest rate.
I’m not sure how reasonable that approach is since you’d now owe the IRS, that can’t be discharged in a bankruptcy, instead of unsecured creditors, that could. But as I sit here and think about this approach I can’t help but chuckle that for many people it is a low cost way to consolidate debt and pay it off, with some risks. I’m not sure why I never thought of this before. Thank you.
Even if you don’t get the free debt consolidation loan from the IRS, you can still start to payoff your debt with what money you have by following the debt snowball approach.
The only other options would be to explore a debt management program that will allow you to make one monthly payment, but it is not a loan, and it can impact your credit report.
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