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AD: Debt Relief? Loan / A+ Rating wt Better Business Bureau

$30000, $40000, $50000 Loans For Debt Consolidation

The latest contributor to this web site has a pretty standard need for debt consolidation. Basically he spent some money on trips and home renovations, charged all of this to his credit cards and is now faced with high interest rates on the unpaid balance. Credit cards will charge upwards of 19% or more while personal loans are much lower. They can be as low as 3% at time of writing depending on credit ratings and any security that is provided by the applicant. This is a significant difference for anyone who is paying credit card debt. The savings could be put towards paying off this debt if he can be approved for a low interest debt consolidation loan.

This consumer appears to be in an excellent position to be approved for a debt consolidation loan. He has a secure job, makes decent money and has little debt other than his mortgage on his home in addition to the credit card debt. His car is paid for and he has always paid his monthly payments for utilities, taxes and debts on time. As a result he has a very good credit rating.

There are several potential solutions available for this consumer to consolidate his debt. The first is to assume a personal loan at the prevailing rates for unsecured loans and make the payments over a three to five year term. He will save money on interest, but this solution does not provide him with the flexibility he is looking for.

Another solution is to add the debt to his mortgage and spread the payments over 20 or 25 years. The disadvantage is that this will spread his payments over a long period of time and increase his mortgage. The advantage is that his monthly payments will be much lower and he will save a great deal of money on interest since the mortgage rate is secured and will be much lower.

The last solution is to apply for a line of credit, secure it with the equity in his home to obtain a low interest rate and draw on the loan as needed. This solution would allow him to consolidate his credit card debt at a low interest rate, save a great deal of interest and also provide him with the flexibility he needs to draw on the additional funds as needed when he plans to complete his additional renovation work.


Home/Mortgage Loan Amount :: $40,000

Home Loan Application and Processing Speed (when do you need the funds)::we need to consolidate our credit card debt. The interest rates are killing us and we need to get this done asap.

Do you currently have a mortgage? :: yes, $89,000 with 12 years left at 5%

Bank Name and Branch ::Bank of America

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

Zip :: 94607

What is your employment field? :: Bus driver for City Transit

Employment Position :: Bus Driver

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

Your credit rating to be – excellent, fair, or bad? :: Fair as far as we know

How did you find us? :: Looking for debt consolidation loans online

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

Gross Amount Per Paycheck ::$3076

Do you agree to have this information published online, without your PRIVATE information of course? :: sure no problem as long as this gets the loan approved for me

Extra information here please (some detail):: I am a bus driver with the local transit corporation for the city. I have worked there for many years, have seniority and make a pretty decent living. We only have credit card debt plus our mortgage on our home which is relatively small compared to the value of our home and those homes around us. We believe our credit rating is actually pretty good and we should be able to qualify for a low interest debt consolidation loan with competitive terms.

We went on several trips and also started some renovations on our home which we charged to our credit cards. We want to do some additional work on the house, but need to focus on reducing our costs first.

Note to Lender :: Our credit card debt amounts to $32,000, which is really the amount we want to borrow, however we are also planning some additional renovations to our home and may need some additional funds to complete this work. We have several options. One is to borrow $30,000, forget the renovations and pay the additional $2000 ourselves. Another option is to borrow $50,000 to cover the debt consolidation we need and to also have added funds available to cover the renovation work we are planning.

We are not 100% clear on the cost of the renovation work at this time. It might end up being only around $8000 or it could go above that. That is why we have mentioned both the $40,000 and the $50,000 debt consolidation loans. We are looking for a flexible kind of loan to allow us to draw on the funds as we need them and not all at once. The main priority at the moment is the debt consolidation loan so that we can avoid the high interest that we are paying on our credit cards at this time.


Category: Home Mortgage Loan APR 3% APR 4% APR 5%
Loan Principal $30,000 $40,000 $50,000
Payment Schedule Monthly Monthly Monthly
Length of Term 3 4 5
Amount to be paid $31,387.24 $43,266.05 $56,352.97
Total interest paid $1,387.24 $3,266.05 $6,352.97
Paid per installment $859.92 $889.03 $926.35