personal loan to pay

[moonchaser]

Debt Settlement:

I have two cc debt.

Citi - 5 year hardship payment plan - o.o interest. I am down to 4.5 years. 19,000 now. I can follow thru with this plan. I leave this alone for now. I am happy with this as I see my debt with the company going down fast.

Amex. Almost $23000. I couldn't afford to make a minimum payment and yesterday I missed the due payment. I did call the creditor twice in last 2 weeks and they won't reduce from 9.99 to zero. I requested that my acct be closed and I got a letter from them reflecting my account is closed, but my credit report shows my acct is still open.

I will get my 2nd job back in Sept. I will get some extra money for EF and debt settlement. I worry I won't have enough for settling debts with AM. EX.

So is it okay that I obtain a personal loan of $13000 while my credit score is still good. I would hold funds until I am close to being charged off with Am Ex. With my 2nd job, I would be able to pay back loan faster.

What do you think? Thanks. Moonchaser

[maat55]

The credit bureau may take a month or more to reflect the closed account.

I see borrowing now to pay later debt as an huge risk. You will likely spend some or most of the funds and end up more in debt.

I would be looking to sell something big(car, house etc.) and get a second job now.

You need to set down and cut your budget to the bone.

What did you aquire with all that debt?

[jpg7n16]

How would you make the payments on the 13k? You can't even make payments on the debt you have, let alone new debt.

If I was a bank, and you told me what you just told us - I wouldn't lend you the 13k.

[disneysteve]

You have $42,000 in debt. You are asking about borrowing an additional $13,000 and using that how exactly? Is your plan to not pay AmEx and then try to negotiate a settlement? If so, what makes you think anybody is going to lend you 13K when you are past due with AmEx and on special arrangements with Citi. I don't care what your FICO is (and I can't imagine it is all that good). When they pull your credit report and see that mess, they aren't going to lend you a penny.

As we always say, you can't borrow your way out of debt. If you already have a 2nd job, get a 3rd. Sell everything that you possibly can. Cut every expense you possibly can and send every spare penny toward the debts until they are gone.

[Ima saver]

I don't think you should borrow any more money.

[moonchaser]

I got approval for cash-out auto refinancing loan for 11,000 and I got a great rate - 4.5. interest rate.

My credit score remains good. For now. I know it won't last long.

I have not used cc for over one year, except one vendor automatically charged for annual membership last Oct. My Citi account is closed, but my Amex account is still open per my credit report. I have Amex's letter confirming that my acct is closed last Feb.

My goal is to have a debt settlement with the Amex. I barely have any back up money and I won't have any extra money until late September when I return to my 2nd job. There are always emergency expenses popping up but we have successfully managed without using cc and we barely build a very little savings. I want to use this loan to settle with the Amex. I have been worried that the AMex might sue me and that I might be forced to file an bankruptcy and lose a house. I have been shopping for a lawyer who is familiar with consumer law. I don't have money to pay a lawyer. That is why I need the loan. It is strictly for taking care of this cc debt problem only.

The Amex begun making calls already. They also called my son's cell. Where did they find his #? I want a sample letter - cease/ communication in writing only letter.

[Ashleywatson]

I do not think it will be good idea to borrow money now, there is many other option to solve your problem.anybody is going to lend you 13K when you are past due with AmEx and on special arrangements with Citi.Just cut your expense until debts are gone.

[James00]

Well you need to contact with the bank for further detail as he will guide you properly.

[woodie96]

I'm with DS here. Like he mentions later in his post....

You can't borrow your way out of debt.

Doing the cash out refinancing would probably lead (at least for me years ago) to spending a sizable portion of the money, and then still not being able to settle with AMEX. Then you would have even more debt, putting you even further behind the 8-ball.

Good luck though, which ever route you choose.

[James00]

Personal loan's interest is always high as you should always avoid taking loan.

[snshijuptr]

You seem to have enough money tied up in unnecessary expenses if you still have your home and your son has a cell phone. Unless he is paying for that phone himself, you need to drop his line. If you still have memberships being charged to your credit card, then you haven't gone through your bills and dropped all of your unnecessary services. If you want help getting your financial life back on track, then go through your bills and post your current expenses. People can make recommendations to help you save your financial life.

[dczech09]

Everyone here is telling you this is a bad idea; so what is blinding you from seeing that this is a bad idea? Seriously what you're thinking of doing will backfire on you and you will end up in more trouble. Bankruptcy is what you're heading for; do not fool yourself into thinking it will be easy. I cannot imagine that a bank thats reputable enough to do underwriting will actually give you this loan.

You need to sit down and figure out a few things. What did you do to rack up this debt in the first place? The obvious answer is that you were spending more than you make; debt is the symptom of this problem.

You say you want to set up an emergency fund and hire an attorney. If you end up filing for bankruptcy because of the debt that you cannot pay off, you will not have an emergency fund anymore and the legal fees will drain other resources.

If you do this, it will be a total catastrophe. Debt settlement will for sure kill your credit, assuming you even have credit at this time. Bottom line, you borrowed the money and have the obligation to pay this off. Grow up, pull out the calculator, set up a budget, stop overspending, sell some stuff, work extra, and whatever else it takes. Bankruptcy will be MUCH worse than you imagine and doing what you're planning will get you there fast.

[solvemybadcredit]

If you do reduce your loan payments and pay off the credit quicker, yes. Otherwise no.

[Hector]

Originally Posted by moonchaser

I got approval for cash-out auto refinancing loan for 11,000 and I got a great rate - 4.5. interest rate.

My credit score remains good. For now. I know it won't last long.

I have not used cc for over one year, except one vendor automatically charged for annual membership last Oct. My Citi account is closed, but my Amex account is still open per my credit report. I have Amex's letter confirming that my acct is closed last Feb.

My goal is to have a debt settlement with the Amex. I barely have any back up money and I won't have any extra money until late September when I return to my 2nd job. There are always emergency expenses popping up but we have successfully managed without using cc and we barely build a very little savings. I want to use this loan to settle with the Amex. I have been worried that the AMex might sue me and that I might be forced to file an bankruptcy and lose a house. I have been shopping for a lawyer who is familiar with consumer law. I don't have money to pay a lawyer. That is why I need the loan. It is strictly for taking care of this cc debt problem only.

The Amex begun making calls already. They also called my son's cell. Where did they find his #? I want a sample letter - cease/ communication in writing only letter.

I would consider selling house and paying this CC debt.

[nick__45]

Originally Posted by Ima saver

I don't think you should borrow any more money.

But it feels so good to have some fresh cash in hand. Cash Money.

[jpg7n16]

Originally Posted by nick__45

But it feels so good to have some fresh cash in hand. Cash Money.

If you think it feels good to have cash in hand, you should try having cash in hand - and being debt free.

It's pretty nice.

[fe2o3ez]

It's been several months, and I would be curious about an updated status. Moonchaser, what did you end up doing??