Can I Consolidate All My Debt Without a High Paying Job?

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Can I Consolidate All My Debt Without a High Paying Job?

This client wants to know, “Can I consolidate all of my debt without a high paying job?”. The answer  to this question is generally yes, however there are several issues that may need to be addressed before a definitive answer can be given.

Lenders look at a number of variables before making a decision to approve a new loan or mortgage. Credit ratings are important. This clients credit rating suffered during his dispute with a utility. Even though it was resolved in his favor, the utility reported his non payment to the credit bureau. They never rescinded their report even though the final ruling was against them.

Aside from the credit rating, his monthly payments including mortgage payment and taxes along with loan payments should be less than 40% of his monthly income. This factor can only be assessed after an interest rate is assigned and more information provided by the client concerning his existing loan payments. Consumers should always aim to be below 40% on all of their monthly payments as a general guideline.

His home will also need to be appraised to confirm its value. This is needed to ensure that there is sufficient equity in the home to support a mortgage request. The home will be the security for the mortgage. Lenders want to know that the home can be sold to recover the amount that has been lent to the customer in the event that he is unable to meet his monthly obligations. This is a common practice used by many lenders. There are appraisal fees to also be considered.

There are other methods with regards to consolidating and eliminating his debt. All of the following may not apply, however using those that do can help many consumers deal with debt situations and potential high interest rates. Here they are:

  • Only purchase what you can afford to pay for.
  • Pay more than the minimum monthly payment.
  • Spend less than you make.
  • Pay your highest interest rate debt off first.
  • Buy used cars rather than new cars.
  • Downsize to one car if you can.
  • Pay attention to grocery bills, eliminate more expensive items.
  • Find a second job.
  • Ask your spouse to go back to work.
  • Work additional hours on an overtime basis.
  • Pay off loans aggressively with the extra income.
  • Set up a budget and track your expenses against this budget.
  • Apply for a consolidation loan.
  • Refinance your mortgage.
  • Obtain credit counseling.

Our client is applying the refinance your mortgage approach to consolidate his debt. While this is a viable method used by many consumers, there are many other options to consider. It all depends on the personal situation of the client, their financial situation and of course their job prospects. After he reviews his options and provides the additional information requested, the client will be in an excellent position to  answer his own question. He will be able to decide which approach is the best one for him and his family.


Home/Mortgage Loan Amount :: $159,000

Home Loan Application and Processing Speed (when do you need the funds):: would like to have everything arranged before the end of the month

Do you currently have a mortgage? :: Yes, a small balance remains

Bank Name and Branch :: Bank of America Financial Center, CA 111

What City/Town, State and County do you live in? :: Rancho Mirage, California

Zip ::92270

What is your employment field? :: Tourism Golf course management

Employment Position :: Golf Course Manager

When are you paid? (monthly/weekly/biweekly):: biweekly

Your credit rating to be – excellent, fair, or bad? :: Fair to excellent as far as I am aware, have never checked on my rating

How did you find us? :: Looking online for loans without a high paying job

How are you paid? (direct deposit/paper check):: direct deposit

Gross Amount Per Paycheck :: $1846

Do you agree to have this information published online, without your PRIVATE information of course? :: sure no problem, I really do not want my boss or any of our customers to become aware of this application

Extra information here please (some detail):: the question I have is can I consolidate all of my debt without a high paying job? I work at a local golf course here in the valley and make a reasonable salary. However it is no where near what some of the people who play on the course make. They seem to have unlimited money and spend as if there is a lot more where that came from. I just cannot afford to spend money the way they do.

At the same time, I have a total debt of $159,000. This includes my existing mortgage on my home. The amount left is $125,000. It is nearing the time when the term is up and I will have to renew it at the prevailing interest rate. Rates are low right now so my monthly payment on the mortgage should actually go down a bit if I can arrange for a lower interest rate.

I have $34,000 remaining consisting of credit card debt of $25,000 and a small car loan which is also at a reasonable interest rate. It is the credit card debt that I am concerned about and would like to consolidate all of my debt into one easy to administer low interest mortgage. Do you think I can do this without having a high paying job like some of my customers?

Note to Lender :: Regarding my credit rating, I have never checked, however I believe that it is in good shape. I have not missed any payments ever on utilities or loans. I did have a dispute a few years ago with a utility over a meter reading. It was resolved in my favor. The meter was reporting incorrect information and had to be replaced.

I have been with the golf course for many years and believe that I will continue to work there. We seem to have lots of customers coming to the coarse and it seems to be doing well. Please advise what the best approach would be for someone in my position.