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How To Consolidate $40000 Without Home Equity

Many consumers find themselves in the position that this writer has asked about. He wants to consolidate $40000 without home equity to use to secure his loan. A secured loan would give him a better interest rate and lower his overall costs for the loan. The chart at the bottom of this post shows the difference in the amount of interest paid for someone paying credit card rates vs. an unsecured loan and also one that is secured over a 20 year period. The period and interest rates were chosen randomly for illustrative purposes only, but are typical of what consumers would pay. There is over a $60,000 difference in the amount of interest paid over the term of this loan which is substantial. It illustrates why that you want to find the lowest interest rate possible.

A lower interest rate also affects the monthly payment significantly as well. There is over a $250 difference in the monthly payment between the highest interest rate and the lowest rate. Anyone can use $250 a month to pay bills etc as well as to pay off a loan more quickly.

Consumers should look for loans to consolidate their debt with low interest rates. While they will not find loans that are as low as secured loan rates, there will still be significant savings for them vs. credit card interest rates. While this consumer has a car loan which has a competitive interest rate, there is the advantage as well of combining all payments into one easy payment. He should remember that he likely will not have his car after 20 years and if he consolidates this debt he is in effect deferring payment on a depreciating item which is not considered the best approach.

Financially he would be better off consolidating his credit card debt with a low interest unsecured loan, keep his car loan separate and use the money he is saving to retire the car loan as quickly as possible.


Home/Mortgage Loan Amount :: $40,000

Home Loan Application and Processing Speed (when do you need the funds):: I would like to do this fairly quickly. I am already paying a lot of interest and if I can consolidate my debt soon, it will save me some money hopefully.

Do you currently have a mortgage? :: no, currently rent an apartment

Bank Name and Branch ::Wells Fargo, Malibu Road

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

Zip :: 90265

What is your employment field? :: Waiter at a trendy restaurant

Employment Position :: Senior Waiter

When are you paid? (monthly/weekly/biweekly):: Tips daily, biweekly paycheck

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

How did you find us? :: looking online for ways to consolidate my debt without having any home equity

How are you paid? (direct deposit/paper check):: cash(tips) and direct deposit(hourly rate)

Gross Amount Per Paycheck ::$2200

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 almost $40,000 in debt on a number of credit cards, plus a small loan for my car. The credit card interest is killing me and I want to consolidate this debt in a small low interest loan to reduce the total interest that I am paying and also repay the loan more quickly. I plan to put the interest that I save towards the debt so that I pay it off that much more quickly.

The credit cards are showing 21% interest on the unpaid balance while my car loan which is only $5000 is at 8% interest rate. If I can consolidate them all into a consolidation loan and at a lower interest rate, I should save quite a bit of money.

The problem is that I do not have any equity that I can provide to secure the loan. A secured loan would give me a better interest rate as well. Can you help find a low interest loan for someone who has a fair credit rating who does not have any equity?

Note to Lender :: In terms of income, I work at a trendy restaurant in Malibu California. We are always busy and have some pretty famous clientele who are generous with the tips. On average I make way over $200 a night on tips, however for my income estimate, I only used $100 a night as a tip average. Just wanted to be conservative and not attract attention.

I have a car loan as mentioned for $5000 and four credit cards each approaching $8000 in total balances. I know this was silly to charge up these cards and then not be able to repay them without incurring interest on the unpaid balance. Sometimes you just do stupid things and then have to work to deal with your mistakes. I plan to repay the total balance on each card with the proceeds of the loan and then only use one card only when needed. The others will be closed once they are fully repaid which should improve my credit rating over the long term as well.

Please advise if you can help with my search for a debt consolidation loan with no equity.