I have 3 credit cards, all maxed out, one is $18000 at 29.9% interest rate, the other one is $23000 at 15% interest and the 3rd is $5000 at 10% interest. I pay all payments on time and have great fico score but all credit unions and personal banks decline my debt consolidation loans.
what is the best way to cut this debt or who will give me a loan to consolidate my debt?
I would suspect with the interest rates you are being charged and the rejections that your debt to income ratio is all out of wack and that’s what is leading to the rejections even though you have a “great” credit score. And then of course there is the issue of being maxed out.
When it comes to unsecured debt consolidation loans the two resources I recommend are Prosper and Lending Club. They are both peer-to-peer lending networks that primarily fund unsecured debt consolidation loans. If you do decide to get the loan through the LendingClub.com link, let me know and if they approve you I will help fund it.
The bigger concern is if a debt consolidation loan is even a realistic option for you since your cards are maxed out. If you have not addressed the issues that led you to max out your cards then a loan alone will not put your financial life back in balance.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.