Question about loans...

Nakatomi2010

Alright... So, here's the deal.... I'm trying to consolidate my debt into a single monthly bill... My wife and I went through a rough patch which required us to heavily use our credit cards for a bit as we had several unexpected things occur, from a family death to car maintenance and tax time...

Now, my purpose is to try and get this under control, sadly a little over a year ago my wife and I had to get a loan before because being newly weds we almost collapsed under a then new series of problems which we wont get into, needless to say we are not financially inept, nor are we in danger of become broke, we just have too much money going to different places that's getting very frustrating to keep track of. It's my opinion that having one payment to manage is far easier than several small payments as you can get a much beter picture of what's going on...

So here's the question, my wife and I have been making a huge effort to pay off my existing personal loan and we've gotten it below half owed (was a 4 year loan, and we'd have it paid off in 2 years type scenario, it's already almost paid off), is it possible for me to call the bank and say "Hey, can I borrow more money and have it added to what I already owe, you can see my payment history is awesome" or can I say "Hey, I want to take out a new loan so I can pay off the old one, and several other things and consolidate my debt into one single payment?"


I'm assuming going through the bank that has my current loan would work best because they're most familar with my payment history...

Short Story: I'm trying to consolidate debt into one payment, can I have the bank add another loan onto the existing one, give me a new loan, or am I screwed?

TexiKen

How much are you looking to take out in your second loan (as the best way is to get a second loan, don't mix and match with your existing nearly paid off loan)?

If you've shown that you have paid off your loan early, the bank should be willing to give you another loan. The best thing is to meet with someone at your bank, not over the phone, and just say most of what you have here, that you just want to take out a loan to pay off all your other debts and just have one place to pay every month.

CoJoeTheLawyer

It's...possible to do what you are suggesting (I'm not sure on the actual process), but it's virtually impossible for any of us to decide if it will happen for you. We would need to have your complete financial history, the bank's lending policy, etc. etc. (all of which I do not suggest you post online).

My advice is to arrange a meeting with the bank (if you can get the same person who approved your original loan, super) in order to inquire about a second loan. Make sure you have all your paperwork in line, put on your best case and hope for the best. Worst thing they can tell you is no.

supabeast

The only way you’re going to get a good answer is to ask your bank, but don’t be freaked out if they turn you down. Right now the loan markets are crazy and many lenders won’t go anywhere near anyone who looks even a little risky. It also varies a lot from region to region—if people are defaulting on home loans all over your area, the banks are going to be less likely to loan anyone money. On the upside, it doesn’t sound like you want to take out a large loan, and you’re only trying to consolidate existing debt which will probably lower your total monthly payments. That works in your favor, especially if you have been keeping up with payments so far. Make sure to emphasize that point so that they know you aren’t going to blow the money on a heated tile floor in the bathroom.

If you don’t go with your bank, be careful about what other options you choose. Some services will try to negotiate down your debt, but that can be a big black mark on a credit report, so do your homework before your sign anything.

Nakatomi2010

supabeast wrote: »

Make sure to emphasize that point so that they know you aren’t going to blow the money on a heated tile floor in the bathroom.

Yeah, one of them tried to have me drop off the title to my wife's caras collateral, but to be honest, part of what we're trying to do is consolidate debt into samller payments, jettison my car and it's insurance payment, and replace my wife's car with a newer more fuel efficient one that has far less mileage and maintenance fees... Her car is a 2001 Hyundai Tiburon with about $1,000 dollars in maintenance fees that need to be done....

We have a plan, problem is our credit rating doesn't agree, and it wont until someone gives me that damned money...