It is really surprising how many successful people have money problems. After all, you would think that they should be able to manage their money issues in the same way that they manage their careers. Our current consumer has this problem in spades. He apparently has done very well in his sales career, yet cannot manage is bank account and pay his bills unless they are on automatic payments. He also spends a lot of money on clothes to look good and enhance his confidence in front of customers.
He may be totally focused on his sales career, but he also needs to pay attention to his credit rating. Employers check everything these days when they are hiring someone. One area they look at is your credit status. If a prospective employee has a bad credit rating, many employers will not hire them simply because there is lots of competition for the job and they can find qualified resources else where. They just do not bother to check the reasons that you have a bad credit rating. They assume the worst and look at other more qualified candidates. It is a very competitive market place and we all need all the help we can get.
Obviously this sales person would be much better off if he can deal with his current debt and lock in the monthly payments in a low interest loan which are automatically paid out of his checking account. Actually this is what most lenders are also looking for. They want the security of automating a payment from their customer from their checking account. In addition if he is able to maintain a good record of repaying this loan, his credit rating will improve over time.
His credit card debt is not huge, but he will be paying in access of 20% interest on the unpaid credit card debt on his various accounts. A personal loan has a much lower interest rate. Lenders will charge a higher rate for this consumer due to his bad credit rating than they would to their best customers. However the interest rate on the personal loan should still be much less than the credit card interest rate that is typically charged.
Given the focus that this consumer has on his career and now knowing the potential impact that a bad credit rating could have on his employment prospects, he will likely get this area of his life under control. A bad credit rating can also limit the ability to take out a car loan as well as a mortgage for a home. It is very important to get control of this issue if he has any plans in the future of buying a home or upgrading his vehicle.