Consolidating 50 000 credit card debt

You can see if your bank or credit union is able to provide you with a debt consolidation loan.Banks and credit unions are typically only willing to lend people around 10% of their net worth (your assets minus your debts) on an unsecured basis.When the economy is doing really well and jobs are easy to find, some banks may lend people much larger amounts of money without requiring any security, but this is more of an exception rather than the norm.So if you approach your bank or credit union for a loan to consolidate your debts, they are most likely to say, “Sure, we would be happy to lend you the money if you have some security for the loan.” If you own a newer vehicle without a loan on it, you could use that as security for your consolidation loan.If you are not able to obtain a debt consolidation loan, then maybe you can consider other options like selling assets to pay off your debts, downsizing your lifestyle to save money, cutting out expensive hobbies to save money, finding a cheaper home or cheaper place to rent, or increasing your income by taking on another job, taking in ESL students, teaching ESL, or something else.

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This means you can arrange much lower monthly payments than with another type of loan.So if you ask your bank for a debt consolidation loan of ,000, but your net worth is only ,000, they will probably decline your request.They may be able to give you a ,000 unsecured loan (10% of your net worth), but not much more.If you do choose to go this route, you should make sure that you try to pay off this extra mortgage as quickly as possible and don’t do this very often.If you find yourself doing this every year or two, that means that you are spending more than you make, and it is going to take forever to get your mortgage paid off at this rate.

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