What would be the best place to go for a better interest rate loan?
Written By: aaren on November 10, 2009
3 Comments
I have 2 small loans totaling about ,000. They are at an interest rate that I don’t really like because we got them when my husband was just starting out with credit. I believe that we can get them lowered but I just don’t know how to go about it. Does anyone have any suggestions about who a excellent debt consolidation lender would be> Thanks
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Tags: debt consolidation lender, fixed rate private student loan consolidation, home equity loan lowest rate, interest rate, loans
FORGET DEBT CONSOLIDATION COMPANIES!
First of all, you are capable of paying the loans off by yourself, without any help from a company that is only interested in their own profits. Many of these companies are scams who prey on destitute people and then don’t give loans. So ignore them. You don’t need some company to ‘help’ you pay off your loan and line their pockets with your money. Furthermore, resorting to these companies tells lenders that you are a pathetic money manager and that you are irresponsible — both of which are probably not right, but that’s the message it sends. It’s like saying "never give me a loan again please, I can’t handle my money". So don’t touch those companies with a 12 foot barge pole. They’ll ruin your credit history and make it even harder to get another loan in the future.
Now, your problem is that you need to lower your effective rate on the debts. That is a FANTASTIC starting strategy for tackling debt. Instead of going to one of those dodgy companies, go to a mortgage and loan broker. They are advertised in the phone book. You go in and sit down with a consultant, clarify your situation, and then they go through the hundreds of loan products they can source from different companies to find you the best deal. They then charge a small commission, which goes into the loan that you take.
The benefit of this is that YOU get a much better deal. You are in the position of consumer, not victim. You are shopping for a loan product, not going cap in hand to a dodgy company that only issues loans to people with terrible credit.
The advantage of going to a proper broker is that they can get you a loan at a lower rate than you would get if you just went into your bank and got whatever they offered. It’s like trying on heaps of shoes and choosing the perfect pair, rather than going to a shoe shop that only sells one kind of shoes.
As a first recourse, I suggest you talk to your lenders about reducing the rate. Tell them you are considering getting a personal loan to pay off the debts, and that you are quite willing to go your business to another company. Companies don’t like losing customers. Question to speak to a supervisor if the initial threat is not enough. If that doesn’t work, go to your local mortgage and loan broker and get them to do all the hard work for you. Unless your credit history is truly appalling, you should do better than you would at a debt consolidation company.
Best wishes in getting rid of your debts!
If your loans are half paid for, you already paid about 70% in interest. If their honestly new, go to bankrate.com
Hi,
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