Financial help/Advice...PLEASE

Dire_Straits · Jul 23, 2004

Guys,
I am in a financial bind. I made some bad decisions a few years back and I am the only one responsible for my current situation and I am paying for it now.
My credit score is low and I can not find anywhere to borrow $3000 to $5000 to get myself back on my feet( I have lots of equity). I need to pay way past due property taxes and make an equipment repair and get the kids ready for school. I work full time and have a good job and a good cash flow.
Does anyone have any advice where to inquire on line about a loan or lender that would make a loan to below average credit rating?
Any advice or suggestions would be appreciated !!!
Post here or IM me if you have any suggestions or tips.

Thank you very much.

MikePA · Jul 23, 2004

If your equity is in your house, visit a credit union and get a home equity loan.

If the equity is in something else, visit a credit union and get a loan that is secured by the equity.

Dire_Straits · Jul 23, 2004

Is a credit union better to deal with than a bank ?

A heart felt thanks to you for your reply. /forums/images/graemlins/smile.gif

Golfgar4 · Jul 23, 2004

You might check with your local social services agency. Most communities have free financial advice services available through agencies such as United Way or other similar organizations.

Good luck with your search and finding an acceptable solution. /forums/images/graemlins/smile.gif

Junkman · Jul 23, 2004

( Is a credit union better to deal with than a bank ?

A heart felt thanks to you for your reply. /forums/images/graemlins/smile.gif )

You have to join the Credit Union by opening an account with them. Usually they are the least expensive way to borrow money. If your credit score is low, it will be harder to borrow and be more costly with a higher interest rate. The borrowing part is difficult when you are in financial difficulty, and repaying becomes even harder. I would suggest that you sit down with a credit counselor before you try to make any more loans and see exactly what your debt total is and what your assets are. Then they will make suggestions as to how to get out of debt. You didn't mention it, but usually when people get deep into debt, there is a large credit card balance that they are paying on with a high interest rate. Borrowing $3000 - $5000 is only going to be a stop gap procedure until the next financial emergency arises and will not get you out of the quagmire that you have created. You need a complete financial plan for debt reduction. Don't procrastinate any longer, do it ASAP. The sooner you deal with this problem, the sooner you will feel the burden lifted and you will be able to see daylight at the end of the tunnel, albeit a long tunnel.

MaineGuy · Jul 23, 2004

A Credit Union is your best bet. Be careful with online or unknown lenders. Like everything some are good and some not. Don't end up in worse finanial shape by being taken advantage of by some high interest rate risk based lender. Some of the towns around where I'm from will set up payment plans for past due taxes. They like to get some money every month and don't want to forclose, try them first. Contact all of your creditors, be up front with them. Equity in a house is the most likely way you will be able to borrow new money. Be willing to pay off all your debt including the taxes. Set up the payments on a payroll deduction. Also be willing to cancel your cable and cell phone and internet. When you ask for help make sure you're willing to sacrifice and do what it takes yourself. Sorry for the sermon. Good Luck.

David
Loan Officer

MaineGuy · Jul 23, 2004

Junkman, excelent advise, very well stated.

Bird · Jul 23, 2004

Yep, Junkman, good advice. And of course to open an account with a credit union, you have to make at least a small deposit, and then it's usually quite awhile before you have enough "history" with them to get a loan. At least that's been my experience. I've been a member of one credit union for 39 or 40 years, but when I applied for a loan, in an amount of about 2 month's salary, when I'd only been a member for nearly a year, I was turned down, in spite of having a clean credit record. And of course, after I had been a member several years, they're willing to finance almost anything 100%. And when I bought a new Honda Aspencade (Gold Wing) in '85, I called to ask about financing it, and was told they would be glad to, but would also just as soon make it an unsecured personal loan if I preferred.

Yankee · Jul 23, 2004

Well, "lots" of equity begs several questions, including what you think constitutes a lot and how much of it is already obligated. Assuming that a lot really is a lot, say many thousands in excess of what you wish to borrow, and that the ratio is truly high, say at least 40-50%, AND the equity is clear (i.e., no seconds or other liens), AND the property is marketable, you can virtually always find a lender. What you're risking, however, is losing your house and naturally, you will have a high rate. Junk loan lenders don't hesitate to foreclose. I agree with the prior poster - you need to fix your financial situation first and foremost.

MikePA · Jul 23, 2004

Is a credit union better to deal with than a bank ? 
Credit unions tend to be better to deal with when compared to banks.

To combine what others have said, I recommend joining a credit union then using their services, which usually include financial counseling, to develop a plan for getting you back on your financial feet.