Do You Need To Get Some Credit Card Debt Relief Yet?
This applicant is actually pretty typical of many people who have credit card debt issues. They have several credit cards, charge them up to the maximum and then find that they are faced with high interest charges and really cannot repay them in time to avoid the interest charges. This applicant owes a total of $15,000 and is looking for credit card debt relief.
He purchased some equipment for his job on sale and would prefer to hang onto the equipment, however he does not want to lose what he saved on the purchase to high interest rate charges. His credit rating is actually pretty good and he also wants to protect that as well.
He has several options and it will be up to him regarding which option makes the most sense for him financially. he can apply for credit card debt relief, however it is unlikely he would be approved with his income and work history. In addition this step could negatively impact his credit rating. He could also apply for a personal loan at a lower interest rate. While the loan would still cost some interest, it would not be nearly as much as the credit card interest. Finally, he can sell all or some of the equipment he purchased and repay his debts. If the sale price was as good as he indicates he might even make a profit on it!
In the chart at the bottom of this post we calculated his monthly payments and total interest charges for credit cards, for a secured personal loan and an unsecured personal loan. The interest rates chosen are representative of typical rates, however they will vary depending on the lender. They really show the difference in the cost of the loan depending on which option the customer selects.
More discussion will be needed.
DEFAULT LOAN APPLICATION FOR BORROWER’S INFORMATION
Credit Card Debt Loan Amount :: $15,000
Credit Card Debt Loan Application and Processing Speed (when do you need the funds):: I have to pay my credit card statements by the end of the month otherwise I will have a balance and pay interest on the remaining balance
Do you currently have a mortgage? :: no, I rent
Bank Name and Branch :: Bank of Denver, 17th Ave
What City/Town, State and County do you live in? :: Denver, Colorado
Zip :: 80203
What is your employment field? :: tourism
Employment Position :: I have a number of jobs, ski instructor, Whitewater rafting guide, and general handyman
When are you paid? (monthly/weekly/biweekly):: usually biweekly
Your credit rating to be – excellent, fair, or bad? :: right now it’s pretty good however if I miss these payments or delay them my credit rating might take a hit
How did you find us? :: looking online for solutions to credit card debt relief
How are you paid? (direct deposit/paper check):: it varies, some are direct deposit while others are by paper check
Gross Amount Per Paycheck :: $$2000 average
Do you agree to have this information published online, without your PRIVATE information of course? :: sure, no problem
Extra information here please (some detail):: I have three credit cards, each with a credit limit of $5000. Unfortunately for me, I have charged items to all of these cards up to almost a $5000 limit. They are all due this month. I bought a number of Christmas gifts plus some equipment that I need for my ski instructing and white water rafting activities which was on sale. The deals were just too good to pass up, however the money I saved might be spent on interest charges if I cannot find credit card debt relief soon. The interest rates on the cards are almost 20%.
I do not have the money to pay these credit cards in full. And I’m wondering what kind of credit card debt relief is available to me and whether I should take advantage of any of these plans?
Note to Lender :: I work pretty much all year around in a variety of seasonal activities. During the winter I work as a ski instructor. In the spring, summer and fall, I switch to being a guide for a white water rafting company in the mountains around Denver. Colorado is certainly the place to live if you want to take advantage of all of the outdoor activities it has to offer. Depending on the season, there may be some down time between ski instructing and guiding, so I take on handy man projects for the local companies in the area or for local customers. I pretty much work all year round and have a really great time doing it.
I tend to watch how I spend my money pretty carefully and do not get into debt if I can help it. These deals for equipment were just too good to pass up. I would really like to arrange for some kind of credit card debt relief or I will have to sell some of the equipment that I purchased. I really would prefer not to do that, however I also do not want to have this high interest debt hanging around either.I also do not want to take a chance of ruining my credit rating either.
Can you help or make some suggestions regarding what solution would be best for me in this case?
|Category: Credit Card Debt Loan||APR 19.6%||APR 4.5%||APR 9%|
|Length of Term||5||5||5|
|Amount to be paid||$22,471.10||$16,715.30||$18,430.61|
|Total interest paid||$7,471.10||$1,715.30||$3,430.61|
|Paid per installment||$369.39||$274.77||$302.97|