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Where can I get a loan if I have a bad credit?

My mother needs a loan to pay out her credit card debt. She has fallen behind because of the problems at work and not receiving as much money as she used to.

Oct 11, 2014 by Larisa in  |  Flag
4 Answers  |  5 Followers
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4 votes

Larisa,

There is likely no source of loan for this purpose. If you change the question to read "Who would be willing to lend me money when I can't repay the people I borrowed from before?" - you can clearly see that that answer is likely no one.

Possibly bankruptcy is the only way to discharge the debt. You may wish to speak to a bankruptcy attorney. You will have trouble then borrowing in the future, but you may be able to get your current debts discharged or restructured to something you can afford. Good luck.

1 Comment   |  Flag   |  Oct 12, 2014 from Bridgewater, NJ
Larisa

Do you know any good bankruptcy attorneys in California?

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3 votes
John Essigman Level 17

Hi Larisa,

There are no easy fixes to excessive debt, particularly credit card debt. I would be very careful about obtaining a new loan to pay off credit cards as it does not fix the root cause and may compound the problem. Using a home equity loan may place your home at risk as you are exchanging secured debt for unsecured debt.

Work on paying off your higher interest credit cards first and move high interest balances to lower interest credit cards if possible.

Stop using your credit cards, cut your spending for non-essentials, and increase your income by locating additional employment. (as painful as this sounds, non-essentials would include those items not necessary for living, such as cable TV, coffee, cell phone, DSL, etc) Consider taking a class on how to take control of your finances such as the Dave Ramsey Financial Peace University.

1 Comment   |  Flag   |  Oct 12, 2014 from Cleveland, GA
Larisa

I am under contract with my cell phone and the dish so if I cancel I will pay more than I have. My mother doesn't have money to pay off credit card at all, that is the reason she wanted a loan. We no longer use any credit card anymore. I have checked out some of the classes none of what they teach work in real world. What job would you recommend to someone with no experience or college degree?

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Tunc Tanin Level 10

If her income went down and it is not going back up any time soon, you have to see if by reducing her expenses she could sustain her living. John's advice is right on the point, borrowing money to pay off debt when your income is going down is not a sound way to solve problems. If she has assets that she can sell that would help. In addition to cutting expenses you should sell non essential stuff, a garage sale would help. Don't be afraid to consider bankruptcy if by cutting her expenses she can maintain her living but she does not have a chance to pay off debt. Dave Ramsey has a service that he sells that counsels people away from bankruptcy. Most bankruptcy attorneys disagree with his advice. I would only use Dave Ramsey for his focus on cutting expenses.

3 Comments   |  Flag   |  Oct 12, 2014 from Somerville, MA
Larisa

There is nothing that we have that we can sell. We had to leave a lot behind when we moved. We have no assets to sell. How much does Dave Ramsey charge? How do I contact him?

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Flag |  Oct 12, 2014
Tunc Tanin

If you have no assets and a reduced income borrowing from another source wont solve your problem. If you cant make the credit card payments, Dont borrow from another source to pay them. Now you have to make payments for the loan. If you dont have any assets and you are in low income, you would be a good candidate for bankruptcy. It will erase all your debts. If later on your situation improves, you can reinstate the credit card loan and payback the credit card companies. Please talk to 2 o3 bankruptcy attorneys in your area. They wont charge for the first meeting

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Flag |  Oct 12, 2014 near Somerville, MA
Larisa

I will look into it. Thank you.

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0 votes

You can also contact the credit card companies and tell them to freeze/cancel the accounts and place them on a 5 year pay off schedule using the minimum monthly payment amount. This will usually drop the interest rate on the card debt to 5% or less. The downside is that the credit cards are no longer available for use.

1 Comment   |  Flag   |  Oct 12, 2014 from Canton, GA
Larisa

We have no money to pay off minimum balance. If we were able to pay off minimum, I would not be posting here.

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