Re: Major DEBT ...Need help! (2024)

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Re: Major DEBT ...Need help! (1)

Anonymous

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‎05-06-201509:49 AM

‎05-06-201509:49 AM

Re: Major DEBT ...Need help!

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

Hello all!

First off, I'd like to thank you all for all your valuable information you share on these forums. I cannot go a day without reading or learning something new on here. I am in a pinch to help my mom get some breathing room on her credit cards.

Here are some of her stats:

She is currently sitting at 65% overall credit utilization.

Her FAKO scores are 630/644.

AAOA: 4 yrs 3 mos OLDEST: 9 years 3 months

INQ: TU -2 / EQ: -4

Payment history: 100% 390/390

0 baddies or lates

Current cards are as follows:

Barclays (Juniper): 3000/3300

CapitalOne: 4500/5000

Chase: 2900/4000

Discover: 6300/8000

FNBO: 700/1500

Target: 1500/2300

Auto lease: $219/month

@Anonymous has other cards as well which I didn't list, that do not have any significant balance. With her stats being the way it is, is there any hope for her to get approved for a high limit BT card to move some of these balances over? I know a few of her creditors have lowered her CL I'm sure due to the high balance. I want to get her out of this mess the easiest way possible as she is paying a ton of interest monthly on these cards. Even a card with a 9-12% interest rate or whatever will be better than some of these that are @ 20%+.

Is there any hope of getting approved for something reasonable? I have tried calling a few of the card companies to lower her APR but they wouldn't budge. Any help or insight would be tremendously appreciated. Thank you again in advance.

I wouldn't count on any limit large enough to cover ALL of that. I hate to say this, but I think there are only 3 ways out here. One is to look into a P2P loan to consolidate all the balances onto one payment with a lower average APR, But that has it's downfalls such as.....How do you know she won't charge the cards up again.

Two would be BK13 to stop the clock on the interest....There are obvious downfalls to this, but it would stop the haemmoraging.

Three is probably the one where most lessons are learned. Concentrate payments on highest APR balances first and a literal belt tightening. No more going out to eat, No more movie night, No unnecessary expenses and an aggressive paydown plan.

If she does get a p2p loan, would that effect her credit rating negatively? I mean, I know she wants to keep her cards but I always thought these debt consolidation companies negotiate with creditors to lower apr, etc...or is this just a big fat check given to us, pay off her cards, then just make payments on the loan itself? Is that how it works? I know she doesn't want to do anything with the word bank and ruptcy in it as she filed over 10 years ago and was the worst time of her life when my father passed away.

She just gets by on what she makes, being that she has to make hefty payments on these cards monthly and barely scratching the surface on balances. Do you know of any p2p companies that you can recommend?

No, You essentially get a check from them and a monthly payment. You deposit said check and pay the CC's off.

As far as APR negotiations? You're talking about a debt management plan. I don't recommend this. You (her) can negotiate the APR's yourself going forward.

As far as BK13 goes, Understandable. That is a last resort.

LendingClub seems to be really picky but they're worth a shot. They're only a SP on TU from what I understand.

Prosper is another good one.

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Re: Major DEBT ...Need help! (2)

Anonymous

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‎05-06-201509:50 AM

‎05-06-201509:50 AM

Re: Major DEBT ...Need help!

@Anonymous wrote:
@Anonymous wrote:

Well, based on what I am seeing, your mom currently has $18,900 in cc debt. I am taking a guess that the FAKO scores are probably from CK, am I correct? Since I do not know your mom's entire situation (salary & other info) I can only guess on what she might be able to do.

With having that much cc debt, it is unlikely that she will be able to get approved for another CC with a high enough limit to transfer even a large portion of her balances, although that is just IMO. If she were to apply the lender will look at her utilization and high balances, this could be a red flag to them. She might be able to get a debt consolidation loan though. There are numerous lenders that she possibly could get approved through.

If you don't mind me asking, what is her yearly salary? How much if any, can she pay to help lower her balances?

Her current annual salary is roughly $40,000. She makes 100-200 payments on all of her cards with a minimum of like $75 due and $60 in just interest. It would take 15 years at this rate I'm guessing.Re: Major DEBT ...Need help! (3)

edited: Yes, her scores are from CK. Her TU scored on capitalone Tracker is 643

With her salary, she should be able to get a loan, but this will also depend on what her other bills are (mortgage, car, etc...). Yes, at teh rate she is going, it would take a lot of time to pay back her debt, especially since she is only paying margionally above minimum payments. With that debt, if she does not want to get a loan, I would sugges paying at least double what she is paying now. Based on her current salary, I do not see her being able to do that.

The loan should not adversely effect her CR too much, but at this time, that should not be her main concern. Her main concern should be to get everything paid off. In time her CR will be even better.

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Re: Major DEBT ...Need help! (4)

Anonymous

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‎05-06-201509:55 AM

‎05-06-201509:55 AM

Re: Major DEBT ...Need help!

I just hit up UpStart and punched in some info and got the following:

Denial:Your current and/or expected income is insufficient to support payments on an Upstart Loan in addition to your
existing payment obligations.

But funny I saw this as her score:

We also obtained your credit score from this consumer reporting agency and used it in making our credit decision. Your
credit score is a number that reflects the information in your consumer report. Your credit score can change, depending
on how the information in your consumer report changes.
Your credit score: 691
Date: 2015-05-06

So I'm seeing it's a lot higher than low/mid 600s...bleh

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Re: Major DEBT ...Need help! (5)

Anonymous

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‎05-06-201509:57 AM

‎05-06-201509:57 AM

Re: Major DEBT ...Need help!

@Anonymous wrote:

I just hit up UpStart and punched in some info and got the following:

Denial:Your current and/or expected income is insufficient to support payments on an Upstart Loan in addition to your
existing payment obligations.

But funny I saw this as her score:

We also obtained your credit score from this consumer reporting agency and used it in making our credit decision. Your
credit score is a number that reflects the information in your consumer report. Your credit score can change, depending
on how the information in your consumer report changes.
Your credit score: 691
Date: 2015-05-06

So I'm seeing it's a lot higher than low/mid 600s...bleh

Every lender that pulls a credit report can see a different score. When you previously stated the credit score in your OP, I am sure it is not FICO. Believe it or not, even with FICo scores, there are 49 different scores you could have.

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Re: Major DEBT ...Need help! (6)

Anonymous

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‎05-06-201510:00 AM

‎05-06-201510:00 AM

Re: Major DEBT ...Need help!

Upstart or LendingClub ring a bell for me.

These guys aren't really those predatory type of lending companies that would look bad to creditors.

If she does get a loan through a P2P, then i would suggest you take all her cards away and leave her with one for emergencies. But make sure it's under $1k CL so this doesn't happen again.

@Anonymous wrote:
@Anonymous wrote:

have you looked into a p2p loan program like Upstart?

She can take out a loan and consolidate all her CC payments into one. Interest rate under 10% would be better than what's she's paying now.

By doing so, does this have any downsides to it besides the risk of potentially charing up the cards again? (Which I plan on taking from her to help)..

Any p2p loan companies you can recommend who are not like those annoying debt consolidation companies that always advertise?

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Re: Major DEBT ...Need help! (7)

Anonymous

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‎05-06-201510:02 AM

‎05-06-201510:02 AM

Re: Major DEBT ...Need help!

Is she doesn't get the loan from a p2p like Prosper, SoFi (social finance), LendingClub or p2p credit, she should seriously consider getting a part time job as well as eliminating all discretionary spending until she pays off her balances.

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Re: Major DEBT ...Need help! (8)

Anonymous

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‎05-06-201510:03 AM

‎05-06-201510:03 AM

Re: Major DEBT ...Need help!

@Anonymous wrote:

I just hit up UpStart and punched in some info and got the following:

Denial:Your current and/or expected income is insufficient to support payments on an Upstart Loan in addition to your
existing payment obligations.

But funny I saw this as her score:

We also obtained your credit score from this consumer reporting agency and used it in making our credit decision. Your
credit score is a number that reflects the information in your consumer report. Your credit score can change, depending
on how the information in your consumer report changes.
Your credit score: 691
Date: 2015-05-06

So I'm seeing it's a lot higher than low/mid 600s...bleh

Try Prosper or Lending Club

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Re: Major DEBT ...Need help! (9)

Anonymous

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‎05-06-201510:07 AM

‎05-06-201510:07 AM

Re: Major DEBT ...Need help!

@Anonymous wrote:

Upstart or LendingClub ring a bell for me.

These guys aren't really those predatory type of lending companies that would look bad to creditors.

If she does get a loan through a P2P, then i would suggest you take all her cards away and leave her with one for emergencies. But make sure it's under $1k CL so this doesn't happen again.

@Anonymous wrote:
@Anonymous wrote:

have you looked into a p2p loan program like Upstart?

She can take out a loan and consolidate all her CC payments into one. Interest rate under 10% would be better than what's she's paying now.

By doing so, does this have any downsides to it besides the risk of potentially charing up the cards again? (Which I plan on taking from her to help)..

Any p2p loan companies you can recommend who are not like those annoying debt consolidation companies that always advertise?

I already have a few of her cards that I have taken so she doesn't keep adding to it. Thank you for the advice!

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Re: Major DEBT ...Need help! (10)

taxi818

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‎05-06-201510:09 AM

‎05-06-201510:09 AM

Re: Major DEBT ...Need help!

@Anonymous wrote:
@Anonymous wrote:

Hello all!

First off, I'd like to thank you all for all your valuable information you share on these forums. I cannot go a day without reading or learning something new on here. I am in a pinch to help my mom get some breathing room on her credit cards.

Here are some of her stats:

She is currently sitting at 65% overall credit utilization.

Her FAKO scores are 630/644.

AAOA: 4 yrs 3 mos OLDEST: 9 years 3 months

INQ: TU -2 / EQ: -4

Payment history: 100% 390/390

0 baddies or lates

Current cards are as follows:

Barclays (Juniper): 3000/3300

CapitalOne: 4500/5000

Chase: 2900/4000

Discover: 6300/8000

FNBO: 700/1500

Target: 1500/2300

Auto lease: $219/month

@Anonymous has other cards as well which I didn't list, that do not have any significant balance. With her stats being the way it is, is there any hope for her to get approved for a high limit BT card to move some of these balances over? I know a few of her creditors have lowered her CL I'm sure due to the high balance. I want to get her out of this mess the easiest way possible as she is paying a ton of interest monthly on these cards. Even a card with a 9-12% interest rate or whatever will be better than some of these that are @ 20%+.

Is there any hope of getting approved for something reasonable? I have tried calling a few of the card companies to lower her APR but they wouldn't budge. Any help or insight would be tremendously appreciated. Thank you again in advance.

I wouldn't count on any limit large enough to cover ALL of that. I hate to say this, but I think there are only 3 ways out here. One is to look into a P2P loan to consolidate all the balances onto one payment with a lower average APR, But that has it's downfalls such as.....How do you know she won't charge the cards up again.

Two would be BK13 to stop the clock on the interest....There are obvious downfalls to this, but it would stop the haemmoraging.

Three is probably the one where most lessons are learned. Concentrate payments on highest APR balances first and a literal belt tightening. No more going out to eat, No more movie night, No unnecessary expenses and an aggressive paydown plan.

agreed . consolidation loan only way to handle this. maybe after paying the cards down. you hide them or cut them up.for moms. so she don't charge it up again. have a flat rate payment per month. its a hard core situation to say the least. Re: Major DEBT ...Need help! (11)

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Re: Major DEBT ...Need help! (12)

Momof5

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‎05-06-201510:38 AM

‎05-06-201510:38 AM

Re: Major DEBT ...Need help!

With that FICO score you got, she should qualify for LC. I had $30K in outstanding CC debt and got a $35K loan from them at 2/3rds the interest I was paying. (They take 4 -5% of the loan as their fee). LC is slow to report, so for a short time, it will look as though her util will drop to a negligible amount (allow *1* card to report a balance). At that point, her score may go higher than 700.

What I did was next app CCs that would give me high limits with 0% BTs. Use those to pay the LC loan. Now focus on paying off the CCs with the BT amounts ASAP.

She can reduce spending by getting the most basic phone (cell or otherwise) and leave the smartphones for later. Get cheapest internet package. Reduce or eliminate cable TV. Throw that $ to pay down the debt.

Here is the issue that may occur.... since YOU are doing te work instead of her....SHE is not learning all that she could or should. I learned the hard way that helping others that way doesn't change the behavior that got them there in the first place. I know you love your Mom, but you really should encourage her to do this herself.

Good Luck to you both!

OH! And yes, LC is a soft pull for the pre-approval and the final approval. Keeps those INQs down! Re: Major DEBT ...Need help! (13)

Re: Major DEBT ...Need help! (14)Starting Score: 472
Current Score: EQ:703 TU: 729 EX:737
Goal Score: 750

Take the myFICO Fitness Challenge

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