My credit score is 650. It will increase shortly since I have two collections that will be deleted.
In any case, I have two high interest auto loans; the first has only $4000 remaining on it, and the second has $20,000. I didn’t realize that 20% was a high interest rate. I realize I’m a moron, but I’m unable to have it refinanced. What’s the finest debt consolidation program that can potentially give me less than 20% apr with a worse credit score?
In your situation, debt consolidation will be challenging because your loan is regarded as secured and is linked to tangible assets. Have you considered renegotiating your car loan? Debt settlement/debt relief programs probably won’t touch auto loans, and debt consolidation, credit counseling, and debt management programs only function with unsecured debt (credit cards and loans).
When provided as a service, debt “consolidation” is actually debt settlement. It is not the same as debt management programs and credit counseling.
I tried refinancing, but the high mileage prevents me from getting it refinanced. I’m not in need of debt relief. All I have to do is apply a reduced interest rate.
I understand. I regret to inform you that there may not be a simple solution. Examine your spending carefully and identify any areas where you may cut costs. Based on your previous comment, I know you already work two jobs, but consider creative ways to boost your revenue. Are you able to obtain a higher paid work, ask for a raise, or take on more hours? Selling items that you no longer need is an option. You’ve undoubtedly considered these options, but perhaps there’s something else you can try.
Simply adopt self-discipline and create a budget. Consolidating debt only moves it around; it doesn’t address the underlying issue, which is your irresponsible spending of imaginary funds. You will be in debt unless you find a solution.
I also need to be aware of this. I recently had a HELOC declined by my credit union, and I need to get on with a few things ASAP.
Take up a second, third, or even more jobs. Sell the $20k car and pay off the $4k vehicle. If it’s underwater, save the difference in time. Get a car for less than $10,000 if you need one; $5k is preferable. heater-equipped beater.
I made use of a SoFi loan for this. Since they will first simply conduct a mild pull, you can examine your rates without worrying about how your credit score will be affected. If you allow them to pay your bills directly rather than having them send you the money, you can receive better rates.