I Am Current on Everything And Have Good Credit But I Owe Too Much. – Robyn

Because of the volume of submitted questions, I am behind in personally answering every single one. I need your help. I am publishing the question below for you to answer. Please help this person by adding your response and advice in the comments section of the original question.

See also  I'm Making My Minimum Payments But It's Getting Tough. - Barbara

2 thoughts on “I Am Current on Everything And Have Good Credit But I Owe Too Much. – Robyn”

  1. Hey Robyn,

    What are your interest rates on the two cars? Steve mentioned a peer to peer lending network to me the other day. It is called Lending club. You can check them out at lendingclub.com

    In your situation, if a debt consolidation loan will help you and you have good credit (660 or higher) it could be a great recourse for a loan to lower your credit. If you lower your interest rates via a new loan and you continued to pay at least the same amount every month, then you will be applying more toward your principle and paying down the loan faster.

    If you are worried about your credit, the only way to not negatively impact your score is to either stay current and continue to pay, or pay off the loans via a new loan.

    However, you also have to be on the lookout for the hit you could take by closing the two cards after payoff. Sometimes after payoff, the bank may lower your credit or close the cards for you. However, I would rarely if ever advocate carrying debt just so a creditor doesn’t close your account or so you don’t take a hit. It sounds like getting out of debt is the most important thing for you.

    So checking out Lending club and let us know your results.
    .-= Damon Day´s last blog ..Tasc – The Association of Settlement Companies – A Closer Look =-.

    Reply

Leave a Comment