Will A Consolidation Loan Solve all My Money Problems

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Will A Consolidation Loan Solve all My Money Problems

Life throws all kinds of curve balls at us and if we are not prepared, they can cause hardship and financial difficulties we did not imagine. This couple had good jobs and were making sufficient income to carry their debt. Unfortunately the husband lost his well paying job. He has found another position, however unfortunately it does not pay as well as the previous one. His wife has a good steady position and a technical skill that will ensure that she remains employed.

The impact of losing a job and then moving to one that pays less means that their monthly cash flow has declined to a level where they can still meet all of their debt commitments, but there is nothing left to enjoy life with. No dinners out, no vacation, limited social life etc.

They are asking if a consolidation loan will solve their money problems. The quick answer is that a consolidation loan or mortgage has the potential to improve their monthly cash flow. However until they reduce and eliminate some of their debt they are going to continue having cash flow issues for some time. A consolidation mortgage will have a low interest rate and a longer term. This would mean that they pay less interest in the short term and it will take much longer to repay their debt. Their monthly payment will be less as well.

Anytime you can reduce interest charges saves you money. These savings can be used to reduce their debt even further saving even more money.  Since they do have accumulated credit card debt, consolidating this debt is definitely something to consider. There are other steps that should be taken in conjunction with consolidating their debt.

These include – reducing their spending and applying the savings to debt; working overtime if available; getting a second job and looking for work that pays more. There is going to be some short term pain, however the main focus is to reduce the debt further to reduce their monthly payments. At this point their credit rating has not suffered too much and they will be able to protect their rating if they are able to repay this debt without any missed payments etc. Maintaining an excellent credit rating also means they would be entitled to a more competitive interest rate.

More discussion concerning consolidation of their debt, interest rates and mortgage terms will help them finalize a plan to attack their debt and significantly reduce it.


Home/Mortgage Loan Amount :: $225,000

Home Loan Application and Processing Speed (when do you need the funds)::as quick as possible

Do you currently have a mortgage? :: yes and several loans along with credit card debt

Bank Name and Branch :: West America Banks, Carpenter Road

What City/Town, State and County do you live in? :: West Modesto, California

Zip :: 95351

What is your employment field? :: Health Care

Employment Position :: Ultrasound Technician

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

Your credit rating to be – excellent, fair, or bad? :: Fair to bad

How did you find us? :: looking online for help with my financial issues and consolidation needs

How are you paid? (direct deposit/paper check):: direct deposit to my bank account

Gross Amount Per Paycheck :: $1600

Do you agree to have this information published online, without your PRIVATE information of course? :: Sure as long as my personal info is protected. Maybe it will hep someone else.

Extra information here please (some detail):: My husband and I are struggling with our debt situation. We owe a combined amount of $235,000. This is made up of an existing mortgage, a car loan, a personal loan and credit card debt. Pretty standard debt from what I have been told by the loan managers we have talked to. Unfortunately, the loan managers at the banks cannot or are not willing to help us consolidate our debt. They also do not seem to be interested in helping us understand what the right solution might be for our situation.

I am working as an ultrasound technician. It is steady work and I am paid every two weeks. I do not think there is any chance of ever being laid off due to the increasing level of health care that is required by our aging senior population. My husband on the other hand was laid off from a really good job that paid very well. He has found another job. Unfortunately it does not pay as well and he is on probation for another 3 months. I think this is one of the main reasons loan managers do not want to consider us.

We can manage on our two incomes and we can meet all of our payments. It does not leave us with any extra money to spend. Frankly we are tired if scrimping and saving. We would like to enjoy life a little more and be able to go out for dinner once and a while. We just want to know if we consolidated all of our debt into one loan or mortgage whether this would solve our money problems?

Note to Lender :: We think that if we could consolidate all of our debt into a mortgage, that the combined monthly payment would be lower than the payments we are currently making. If we were able to do this, we would have some extra money available to allow us to live a little easier.

We do not have any savings set aside at the moment. While we have never missed a payment, we have not been able to save anything either towards emergencies or even for a vacation. Our monthly financial budget is running pretty close to the line.

Any suggestions you can provide will be appreciated. If you can assist us in finding a lender to consolidate our debt that also would be a huge help. Our loans manager at our local bank is not interested in helping. We think he feels we are already over extended and there is no money in it for his bank to assume what he feels is a high risk loan. We strongly disagree and are just looking for help to consolidate our debt.