$7000 Debt Question
A CreditFederal.com visitor says: "I have about 7000 in debt. My credit is not good . I am looking to change that I do not have collateral to put down on the loan . Is there anyone who can help me. Please I'm desperate."
CreditFederal responds: Since you have credit problems and no collateral, it's unlikely you'll be able to obtain a long term $7,000 loan, particularly at a favorable interest rate even if you could get approved. Yet there are other options for dealing with your debt:
Credit Counseling: You can do this yourself or through a professional agency. To do it yourself, first sit down and clearly define your monthly budget and what you can afford per month to repay your debts. Contact your creditors and explain your problem to them and they will likely work with you to modify your monthly repayment plan to fit within your budget. (Related articles: Tips to get out of debt, long term plan to pay off bills, and to pay off debt.)
Debt Settlement: Again, you can do this yourself or through a professional. To do it yourself, again you need to sit down and examine your financial situation. The difference between debt settlement and credit counseling, is that you will be 'paying off' creditors in one lump sum each. For example, if you owe $5,000 on a credit card, you can offer the credit card issuer a settlement of $1,000. If accepted by the credit card issuer; however, you must be ready to send that final payoff amount right away (be sure to get the settlement deal in writing first). Also, this option generally results in bad credit entries being placed onto your credit report, thus lowering your score which could cost you rejections for new credit for years to come, or could force you to pay higher interest rates even on existing loans and credit cards not associated with the particularly settlement. (Related Articles: sample debt settlement letter,
Personal-Personal Loans: You can ask friends and family for financial assistance. Do the right thing and sign a loan agreement that spells out when the loan is to be repaid, monthly amount, interest rate, minimum payments, fees, etc.
For more information about these options, browse our many financial articles on our website.
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