This topic contains 0 replies, has 1 voice, and was last updated by Anonymous 7 years, 5 months ago.
- December 12, 2011 at 12:57 pm #236152
So, I understand the underwriting process of banks, and I know they’ve tightened up lending. But when the purpose of a loan is to consolidate debt, why would they use debt to income a reason for refusal of a loan? For instance, we are paying $1k a month to pay off old credit card debt. With a loan, we wanted to pay off the debt and at the calculated rate, get our debt payment down to almost a quarter of that. Credit unions are garbage, too.
I see both of your points, but the way I calculated it, with the loan (actually it was HEL, not just debt consolidation) we’d be able to pay an extra $100 monthly towards the principle and still save a good bit of the rest. I guess a bunch of bad apples in the lot spoiled it all for the rest of us who could benefit from a loan these days.
But then again, maybe I should change my approach and instead of thinking with my head, just walk around with my hand out in all areas of life?
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