Hell folks,

I am looking for debt consolidation loan. Which banks offer debt consolidation loan? I only found Bank of America that offers for up to $50,000. That's why I need consolidate most credit cards into one loan for $50,000 but a problem is DTI (debt to income ratio). I calculated my total debt and was shocked to notice $70,000! My annual income is $86,000. My credit scores are currently 650 to 660. I had sockdraw most credit cards.

For all current debts, I currently have to pay least $1800 a month. With debt consolidatio loan, I will able pay least $600 a month for 8 years acccording to Bank of America web site.

Any solution?

Thanks,
Sword7

I suggest that you
- start budgeting
- make a list of your CCs with balance/maximum limit/utilization/minimum payment
- work out a debt snowball plan (pay down over the limit CCs and high % cards first)
- sockdrawer all your CCs, as they seem to be your problem
- take a look at why you have that debt and work on that

In another thread you mentioned a mortgage, which could make it even more difficult to obtain a loan.

The problem with consolidation loans is that they require the discipline not to run up more debt.

Good luck!

Your income stated is gross I assume. That is $7166 a month. Your dti with your cards alone is 25.11%. What other bills do you have? I know when I was shopping for a consolidation loan they wanted to see a DTI of 46% or lower with the new loan.

Great suggestions so far!

I would also suggest listening to Dave Ramsey. He has gotten people who make $15k a year out of $50k in debt in 1 year. LOL.

Good luck!

Thats not possible without something other then income being involved. Like selling a kidney or having the creditors forgive debt.

15 <> 50...... or 15 < 50..........

No way

That's IF you qualify for the lowest interest rate. Read the fine print. They may (read: probably will, because you don't have stellar credit) approve you for a higher rate which could be twice the rate they tout.




Or, selling all of one's possessions. I'm not a DR hater as some here are, but I seriously question that claim.

Well first of all, I doubt that they will offer you anywhere near $50K, so don't count on this too much. Most likely, if anything, they will offer you a much smaller amount at a higher interest than would be reasonable for you. The best that I have seen available out there have been life of BTs on CCs that are anywhere from 4.99% with Amex to 5.99% with Citibank. Just like a bank though, they are going to be looking at your throat because of your DI ratio. I would be looking at what you can sell before it gets taken back.

And the thing with Dave Ramsey is that he tells people to sell their vehicles (often at a loss) in order to dump their debt. That would be good advice if you aren't on the edge yet. For instance, if you are driving a $35K car that's worth $20K, the idea is that the $35K turns into $15K, which is a step towards correction. On Dave's show though, you aren't expected to ask the obvious follow up questions.
I like the guy OK, but he is frequently out in left field somewhere when people are pitching the balls. The more I listen, the more I find myself wanting to talk back to him.

Yes, I have a mortgage with Citi Mortgage (Citibank). My monthly amount for mortgage is $986. My overall DTI ratio is 38% for both unsecured credits and mortgage.

Thanks again,
Sword7

I was being "facetious" when I said that about Ramsey. lol

Cut the lifestyle down to the BONE. Kill the cable, cut the cell phone, no more eating out. You get the picture.
Sell so much stuff that the kids/dog go hiding thinking they are next !!

am I the only one who took that as sarcasm?

I don't know your calculations, but it looks as if you want to drag out paying off the CC debt. That way you would be in debt for a longer time. Are you strapped for cash?

A credit union might be more willing to give you a loan, at least for some of the CC debt.

A suggestion, if you do get a consolidation loan, continue to pay the same amount of money towards your debt as you are paying now.

@hlburi: I was hoping that Daddy was making fun of Dave Ramsey. But I wasn't sure about it, as Daddy seemed to seriously recommend D.R. in the same sentence.

ramsey will cost you a lot more in interest and kill your FICO score which will cost you more for auto loans, mortgages, and insurance. there are better budgeting books out there.

he is only out to sell books and his "course"

LOL. Tell that to the people who have paid off $100k in 2 years using his methods. I've met a few people who have gotten out of debt using his methods, and trust me, they are happier than they were before that.

I would happily tell people that, but I do not want to use my credit card on his website.

Please review the "no credit financial advice" sticky before recommending Ramsay lock stock and barrel.

And please stop bumping old posts.

There is a disclaimer on his website about this. Obviously, people will use credit cards if they choose to.

Radi, I don't recommend people NOT using credit. I only tell them to check out Ramsey when they need to get out of debt. Heck, even I am using credit, personally, to get out of debt, transferring a bunch of stuff to 0% cards.

all he has to do is stop accepting debit and credit cards then he won't be encouraging people to go into debt with credit cards. LOL

I used to think that if he got people to educate themselves about credit, debt, finances, etc that he was mostly harmless. That was before I read his doctrinaire approach to snowballing debt, credit cards, etc. I've also heard him tell people to "just follow my baby steps, you don't need to read anything else." as an educator it is hard to defend someone who is basically saying: just listen to me (and buy my stuff ) and don't educate yourself.

The Carnage way of getting getting rich:

Step 1) Get some type of hokey personality and use lots of cliche's.
Step 2) Find people that lack basic common sense.
Step 3) Find a "plan" to market to those people.
Step 4) Sell common sense plan to those people at ridiculous prices.
Step 5) Get call in radio show where people can call in and yell when they get debt free.
Step 6) Let ego inflate while people continually tell you how great you are.
Step 7) Buy anything you have ever wanted. Live the life of luxury and take solace in the fact that you are a genius.

Change this plan around for you to use in making your fortune. Ideas such as:

1) Design plan on how to buy groceries
2) Design plan of how to raise children
3) Design plan on how to effectively communicate
4) Design plan of how to find a job, and then for extra charges, on how to keep the job.

Yes, you can be rich, too. It just takes some of these basic concepts that you need to apply.

you better copyright this!!!

That's a great idea. Are you doing any of this right now?

Hmmmm. Perhaps I'll start a healthy eating empire. People can call me when they've lost 250 Lbs and yell on my show.
I'll be stealing the "rice and beans, beans and rice" line. I can work that right in.