I һаνе accumulated 13k іח credit card debt аחԁ personal loans. I want tο ɡеt one personal loan tο consolidate аƖƖ tһе debt. I һаνе аbουt a 630 credit score. Hοwеνеr, I саח′t seem tο ɡеt a personal loan tο take care οf аƖƖ tһаt debt. Wһаt аrе mу options?
16 Responses to “Is 13,000 in personal loans and credit card debt bad?”
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Yes, $1 debt is bad, it means you owe something to someone
paying off debt with debt will get u even further in.
start paying off now
You might try prosper.com
I have never used it but have been checking it out as a place to invest a little bit.
$13k is pretty common knowadays but it doesn’t make it right. Most institutions can’t lend that amount on a unsecured loan and probably not with that credit score. You will need to do possible a home equity loan if you own your own house or have something thats titled and paid off that will carry the value of 13K.
It depends on your income and your ability to handle the payments. A 630 score tells me you have some late payments.
Prosper.com is a community that gives and receives loans to each other. They do loans for $25,000 or less. There are a number of groups that help you work your way through the application process, no groups fees and no application fees. It normally takes 2-4 weeks to get the money.
The group I belong to is:
https://www.prosper.com/groups/group_home.aspx?group_short_name=FSC
Good luck!
Making a plan and sticking to it. Knock out the smallest balance and apply that to the next smallest balance until you are debt free. Don’t continue to use credit card and don’t consider loans. All you are doing is moving debt. Try to reduce current expenses or increase income however possible. Cut up your credit card and put your debit card on ice. Try to live with cash like in the olden days before credit cards. Save credit for real reasons like car and home not for jeans on sale or concert tickets. Sell things you don’t need and apply the money to your debt. That $13k will be $10k and then $4k, etc. in time if you don’t add to it. Pay more than minimums to at least one card. Make deals with yourself to treat yourself even though on a budget. Shop resale when you can. Clip coupons. Every little bit helps to achieve the goals you have. My motto, “if you can’t have the best of everything, make the best of everything that you have.” Shop online. Share things with family and friends. Go to the library. If you respect your money, it will respect you.
Get a Capital One No Hassle Card – “Whats in your wallet?”
13k in debt is not that bad, how much toward your limit on your credit cards are you? if you are maxed out on your credit cards, that is bad. the actual dollar amount is subject to how much credit you have.
That’s fairly small debt to take out another loan to cover. Just work on paying these folks off. Pay minimums to all except either smallest balance or highest interest loan.
If you’re more emotional, pay the one with the smallest balance extra so you can see one less payment soon. If you’re more logical, pay extra on the one with the high interest.
You can try prosper.com, but you may not come out ahead after paying the fee and seeing what interest rates “normal” people will charge you.
Id say it depends on how much you make and how long its going to take you to pay off your debt and at what interest rate.
Debt period sucks the only smart debt is the one you acquire with the purchase of a house.I wouldn’t recommend debt consolidation either there’s no easy fix for this and if someone lets you borrow money to pay off your loan its not going to be free and the interest is probally going to go up.
Without knowing your personal situation its hard to say whether or not thats alot but i would say get it taken care off ASAP.
Depending on your income this could be a lot in personal debt. The best way to handle this situation is to pay off your personal loans first. These are friends and you should never screw over your support system. Next you want to pay off the smallest debts first so you can slam the larger debt with all that extra cash you have from paying off all the other smaller debts. Something else you need to keep under consideration. If you go to a credit company to handle this debt, while they may get rid of the high interest rates and you will pay your debt off sooner it will adversely effect your credit rating. $13,000 isn’t even a good car loan so you should have no problem doing this without help. You need to economize. That means you scale down your spending to survival only mode and that doesn’t mean renting 1 DVD instead of 10. That means no DVD. Borrow one from a friend if you really need to see one and make sure you return it the next day. Eat at home and take your lunch don’t eat out. Also everytime you think what the hell I’m gonna….. Remember the debt you’re getting rid of and resist the temptation. No new clothes until everyone is paid in full. Cut up all your credit cards and call the company and freeze future charging on them. Then pay them off and cancel them. The worst thing people do financially is buy stuff on a credit card instead of saving up and buying it out right. Not only do you get what you want, you pay less for it when you don’t charge it. Instead of thinking of charge cards as you friend remember they are really your financial enemy. They aren’t there to help you, they are there to enslave you. Also during all this paying off you need to put a little in savings every time you get paid. Look at it as a bill and don’t touch it. This will add up in no time and you will have that safety net if an emergency arises. The United States needs to get rid of credit and as a nation we would be the richest in the world hands down. Our dollar would actually be worth a dollar. So suck it up and look at it as your financial bootcamp. Trim down and pay ‘em off soldier!!! Then you will be able to not only relax but you will be proud of yourself as well. Once you’ve paid everyone off never ever get another credit card as long as you live!!!!
Debt in general is neither good or bad. It depends on what kind of debt and what kind of situation you are in.
For example in credit card debt, if you make $10k a month, owing $13k in credit card debt is just normal or good debt for that income range. But if you make $3k a month, that makes it a bad debt. Also if you have credit balance that is over 35% of your total credit card limit, it counts against you as the percentage goes up. You don’t even need to be delinquent or make late payments to get a bad credit.
There are good debt. Car loans and mortgages (not equity lines) are good credit building debt. It is because your payment is fixed and you can’t take more money out. On the other hand, it will hurt you much more if you make late payments on these accounts.
Generally, your credit is based upon the types of credit (revolving, installment, and mortgages), how much of each your have, how timely you make your payments, and the balances on each of those accounts.
But if making these payments are getting difficult, also call your credit card companies to arrange for some kind of payment restructuring. If that doesn’t work, you may need to go to some credit counseling where the people are experienced in negotiating with the lenders.
Hopefully this helps.
You should stop and consider something. You have 13K in debt from credit cards and other personal loans, now why is that? Where did that money go to and what do you have to show for it? Now you’re asking why you can’t simply replace it with another debt? A 630 score isn’t bad but it’s not good enough for a reputable lender to hand you another 13k. You’ll just have to pay it back ayway so why not just repay what you already have? Substituing debt is never a good solution, you have to eliminate it. Start with the highest interest card or laon and focus on knocking that out while keeping up minimum payments on the others. It’s really that simple.
Having debt will hurt you eventually. Loss of a job, a major illness, etc., could then ruin you financially. Things happen. Cars break (fact of life), economies fluctuate, people get sick. The only way to financially survive those things is to stay out of debt except for a modest house payment….and work to pay that off as well. For some real solid logic and help in that area, go to the library and get this book……”Total Money Makeover” by Dave Ramsey. Then go to his website and listen for free to his radio show for a while. That $13,000 can be paid off fairly quickly with the right motivation and then you’ll be able to sleep at night again.
Yes, $13,000 is very bad, but it is not at all unusual in the US. The “average” credit-card holder carries a ridiculous balance of somewhere around $8K!
You only option is to pay it all off. Cut your cards up today, stop spending money you have not earned yet, and crawl your way out from that hole!
Pay minimums on everything except the smallest balance. Pay everything you can muster (sell stuff, deliver pizzas, etc.) against the lowest balance until it is gone. Then move to the next card.
Good luck! (Don’t go down that hole again!)
It could be better. I just got done paying off my debt with the help of http://www.mm-review.com/money/2.html They have some good helpfull info.Check them out.
Best of luck!
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.