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Is There A Way To Pay Off Debt That is 100% Free?

This applicant is wondering if there is a way to pay off debt that is 100% free. The quick answer is probably not, however there are many ways to reduce his cost substantially. He has a total of $36,000 in debt with roughly half of it being an interest free car loan. Aside from a one time processing fee, this loan was essentially free to him because it carried an interest free loan. He would like to accomplish the same low cost loan approach for his credit card debt. He should continue paying on this interest free loan until it is fully paid. He will never find another deal that is better than this one.

Unfortunately, no lender is going to offer him an interest free loan. They need to make some profit on their lending operations. For really good customers who have an excellent credit rating they may waive the processing fees. They will also extend their best interest rate to these same customers who are considered low risk clients. Compared to the interest rate paid on credit debt, a loan of this type might be considered virtually free. But there is going to be an interest charge on any of these types of loans.

A secured loan is another approach to finding a very low cost loan. the client would need to have some security such as a home that can be used as security for the loan. Unfortunately this client rents his home and would not qualify for this type of loan. He did not mention if there were any other assets that could be used as security for his loan.

He is faced with a personal unsecured loan that carries an interest rate that, while lower than credit card rates is not free. This client has a very good credit rating and should qualify for a competitive unsecured personal loan. He also has a relatively secure job with great skills prospects which will also help him with his application for a loan. He should do everything he can to protect his credit rating. Pay all bills on time, never miss a payment on anything and pay off this debt as quickly as possible.

Clients who find themselves in a bad credit situation will not have as many options. Lenders will be concerned about lending money to them. They will be considered a higher risk. As a result these types of clients are usually charged processing fees and higher less competitive interest rates. They still are usually lower than credit card rates.

If you find yourself unable to meet the monthly payments, there are several options. Non are great from a credit rating perspective. Declaring some form of bankruptcy is one approach. While part of the loan could be written off, the credit rating will suffer and the client may not be able to borrow funds in the future without paying much higher charges.


Home/Mortgage Loan Amount : $36,000

Home Loan Application and Processing Speed (when do you need the funds): relatively soon, I have a lot of debt that I carried over plus Christmas debt

Do you currently have a mortgage? : no, I rent a home

Bank Name and Branch : Fresno First Bank, Palm Ave

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

Zip : 93711

What is your employment field? : IT Operations

Employment Position :Operations Manager

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

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

How did you find us? : Looking for free solutions to by debt problem

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

Gross Amount Per Paycheck : $2461

Do you agree to have this information published online, without your PRIVATE information of course? : sure, however there are lots of ways that information can be released inadvertently, please be careful

Extra information here please (some detail): I have $36,000 in total debt at the moment.  I currently rent a home and pay my rent along with all regular utilities. As far as I am aware, my credit rating is excellent. I have never missed a payment  on my rent, utilities or credit cards.

The $36,000 debt is made up of about $19,000 in credit card debt and a $17,000 car loan. I make regular monthly payments on the car loan. This loan is actually interest free. When I purchased the car, the dealer was offering interest free loans on new cars. It sounded like a good deal to me and I bought the car. So far I am happy with the car and of course the interest free loan. Other than a small one time processing fee, all I pay is a monthly payment which goes 100% directly against the amount I owe. There is no interest component to this payment.

I wish I had the same deal for the debt I owe to the credit cards. The balance of $19,000 on credit cards is going to generate a 19% interest charge if I do not pay the total off in a few weeks. I am looking for a solution or if there is a way to pay off debt that is 100% free. Or at the very least a much lower interest rate that is attractive compared to 19%.

The $19,000 in debt involves the purchase of furniture and items I needed for my home. Frankly I was amazed how quickly it added up, but never the less I now have this $19,000 credit card debt hanging over my head.

I work for a local company who provides IT services to the city and other local businesses. While no job is secure, I believe that the company is doing very well and has several long term contracts. My skills are very employable and if I should lose this job, I would easily find another job in the same field.

Please advise if I can find a better deal than the credit card debt that I have. If it is not free, I understand, however I would like to reduce the overall costs as much as possible.

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  1. Greg wrote:

    Greg From Cadiz Ky. I am looking for unsecured personal loan for 80,000.
    my credit is bad: Experian 538
    Equifax 594
    Transunion 584
    I need this loan for consolidation of several loans as soon as I can get it. Like to have in 5-7 days

  2. Greg wrote:

    Greg From Cadiz Ky.
    I would like 80,000. Credit ranges from 835-894
    I would like to do this as soon as possible.

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