I have 3 credit cards, all maxed out : $18000 at 29.99% interest, one for $23000 at 15% interest, and the other is $6000 at 10% interest. I pay my credit card statements on time every month, I haven’t missed a payment but yet the credit union and personal bank decline my debt consolidation loans and I have no idea why.
Who can consolidate my loans into one lump sum or which is the best route to get out of this credit card debt?
In my experience, the folks filling a lot of unsecured debt consolidation loans these days are the peer-to-peer lending networks like Prosper and Lending Club. Just from my observations LendingClub.com seems to fill more requests from site visitors. If you decide to go with LendingClub.com let me know what your loan number is and I’ll help to fund your loan with the referral fee they give us.
The maxed out cards could be an indication you’ve been living beyond your means and making up for the shortfall with expensive borrowed money. While you might have a stellar credit score, your debt to income ratio might be all out of wack. You see, those that most want to borrow are the least likely candidates.
It might be that a debt consolidation loan isn’t the right approach based on your situation.
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.