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i want to get a consolidation loan from the bank, but would they give it to me if Im $ 12,000 in credit card debt? and after i get the consolidation loan, are they gonna close my credit card accounts? or would they still be open?

5 Thoughts on how do I get a consolidation loan if I’m already $12,000 in debt???
  1. Reply
    November 14, 2011 at 3:48 pm

    There is no answer to your question because the answer depends on your credit history, income, age, location, and other factors. Before you go applying all over town and get shot down over and over again which will only lower your score, get copies of your credit reports. The copies are free under the law but watch what service you use because of the fine print. Try to boost your score before you go applying for credit. In most cases your accounts stay open which is a good thing for your credit history but don’t go nuts with using it or you’ll soon find your $ 12K debt will be $ 24K and then $ 36K etc. Why do you need a consolidation??? Why not just ask for lower rates on the accounts you have set up already. If you’re a good customer, most credit cards and loans will work with you without the need to consolidate. Get a plan to pay what you owe one debt at a time either with highest interest debt first or with smallest balance first. A consolidation only helps you with one payment to make instead of several. How is that a benefit??? Loan companies look at your debt to income ratio as well as other factors. Sharpen your credit report, make and stick to a plan, and work on having $ 12K in savings instead of $ 12K in debt.

  2. Reply
    November 14, 2011 at 4:08 pm

    it all depends on your credit history. If your credit history isn’t too bad they will give it to you. They will pay off each of your credit cards directly and yes they will close all your credit card accounts. My advise to you is to keep them closed and don’t open anymore. It will drop your credit score but you can build it back up. The more you apply to places the more your credit score drops so just go to your local bank.

  3. Reply
    November 14, 2011 at 4:33 pm

    Losing your credit card accounts sounds like a good thing.

    If you can get a loan from a credit union, bank or savings and loan, it has nothing to do with your credit cards.

    Keep the loan term down to 2 years. Pay the same amount on the loan that you would have paid on the credit cards. Don’t make short term debt, long term debt.

    Someone will have to explain to me why anyone would need more than one credit card.

    Throw away all but 1. The one with a good interest rate, a good kickback plan.

  4. Reply
    Debt Slayer
    November 14, 2011 at 5:19 pm

    Consolidation won’t solve your underlying problem. You need to commit to spending less than you earn every month. Shred your credit cards and throw them in the trash. Get on a strict, WRITTEN budget and pay cash for everything. You’ll clear your debts faster than you think if you improve your financial habits.

  5. Reply
    November 14, 2011 at 5:19 pm

    You should not do a consolidation loan–this is just moving the money around that you owe–it doesn’t close out your cards but leaves them open and you therefore can get yourself back into this situation but now with an added loan payment.
    You should look into a debt management program. I was really helped by a company called DCC or Debt Counseling Corporation. They looked at my budget and talked to me about different options that I had. I decided that I wanted to do the debt management program with them (after i researched them, of course). It consolidated all my accounts into a lower monthly payment and i was out of debt in a couple of years because the interest rates were lowered. I was paying 32.24% on my Citibank account and it was lowered to 9.9%, I also had a Juniper bank account that was lowered to 5.9%
    here is the link–worth a call becuase it is free

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