aLcm

well i got a s2k to pay off and school loans are breathing down my neck. I'm looking to hopefully get at least a 40k bank loan to get rid of the debt i owe. i make around 1600 a month and wondering how much would my monthly payments be if i get a loan for that much. anyone thats good with numbers please help.


thanks in advance

cthree

Pay off your debt, most expensive first and then down the line to cheapest. You can't pay debt with more debt.

I need more information:

what debts do you have and what interest rates are you paying on it?
what are your financial obligations? Things you must absolutely pay without question like rent, utilities, things you absolutely must have for work but not including paying off debt?

I strongly believe you are in WAY over your head. At $1600/month and roughly 2/3rd going to meet financial obligations that leaves you with just enough to put gas in the tank and pay your insurance, maybe.

The payment on a 40K loan at 9% over 5 years is about $830/month or more than half your income. Not only can't you pay it your chances of even getting it are nil.

s2kobsession

yea your not getting an unsecured 40k loan if you make only 1600 a month... sorry.

AssassinJN

Not sure what you're really trying to do here. If you financed your car then you already have a loan from a bank, with collateral. When you borrow money from the bank they either need collateral, or will give you a much higher rate (in most circumstances). Also your school loans are most likely a lower rate then you will ever get with any other type of debt you will ever have (my school loan is at 2.4%, so I am in no rush to pay it off as even a CD makes a better return).

Current rates for a personal loan are around 10-11% from what I've seen.

Try this calculator at Chase to see if it will help at all, but they cap personal loans to $25k which would already be $449 a month minimum.

http://www.chase.com/ccp/index.jsp?pg_name...nal_loans_home#

aklucsarits

The intrest on higher-education loans is tax deductable. But if you roll it up into a personal loan, you lose that tax deduction.

Also, as AssassinJN said, intrest rates on an unsecured personal loan will be much higher than your current student loan rates. So you are not going to save any money by consoladating all your debts into one.

The only way it might make sense to consolidate all your debts into one loan would be if you owned a home and could use a HEL or HELOC to do it. That way, you would get a relatively low rate, and the intrest would be tax deductable. You might be able to take just your student loans and consolidate just those. But you can only do that consolidation once.

Andrew

aLcm

10,000 is what i really need to pay of collectors and 2 of my credit cards which is around 3grand and owe collectors 7grand (thats what they will settle for. in reality the total is around 15grand). i just don't want them garnishing my checks. what i have to work with is around 500 to pay the loan monthly. i can deal with that.

i've read that debt consolidation would not work for student loans. unless its just that company policy. but if their is one willing to deal with that please inform me.

cthree

All I can say is what you don't want to hear.

martha

Don't forget that if you settle a debt for less than owed, any difference over (I think) $600 is reported to IRS as income to you, so you'll owe income tax on it. For instance, you owe $10k, they settle for $5k and you pay that, you owe income tax that year on the $5k you didn't pay. Not to mention what it does to your credit rating.

cthree

^ Obscure but very good point.

philbert

well isn't that just like uncle sam to give you a nice kick in the balls when you're down... seriously, a financial institution has to take a write down, and the government is entitled to collect the missing corporate tax revenue from the individual?