Loan...

[HollaGeo]

I just turned 24 year olds and I'm about to be done with school (One year behind). I pretty much have a job lined up for me when I graduate. I aquired some credit card debt and misc. debt while being a student. I would like to pay everything off AND have some money to get things going. I did the math and a $20k loan would be MORE THAN ENOUGH. How would somebody like me find a financial institution that would approve? The only thing I really have going for me is my excellent credit.

 

[Solittle]

Re: Loan...

You sound like a responsible young man. But at 24 you will be wide open to the temptation to buy all the toys that you have dreamed about if you manage to get that loan. If you are not real careful you will find that rather than being in the hole for $10-15,000.00 with several debts that you are in the hole with one big debt for $20,000.00. My advice is to pay off the little guys (highest interest rate ones first) and save for the toys & then pay cash.<br /><br />I know of several folks your age that found themselves in a huge financial hole just as they were starting out. At age 65 with three kids older than you are now I can assure you that you don't want a big debt at this point in your life. <br /><br />I know this is not the advice you were looking for but I can tell you that I started with nothing and have managed to live most of my life debt free and have no regrets.

 

[Manipulator]

Re: Loan...

Finding a loan for unsecured debt (credit cards) is tough. You more than likely would need some sort of collateral. Are you playing on opening a business of some sort? If so you could get a business loan through the SBC (small business center). When I graduated college I had tremendous student loan debt and credit card debt. I still have tremendous student loan debt but I was able to secure a SBC loan. I used it to pay off credit card debt and to also start my practice.

 

[HollaGeo]

Re: Loan...

This is all great advice so far. Much appreciated. My main question is - Will I get approved for a $20k loan?

 

[KRS]

Re: Loan...

ask the bank, we haven't seen your credit report, your cash flow vs debt analysis or anything.<br /><br />We can't tell you that.<br /><br />But $20,000 unsecured to a student with no job but one "pretty much lined up", not a chance in my opinion.

 

[crazy charlie]

Re: Loan...

Much of a loans disposition is base on your "ability to pay".So an equation that you can worh with for now is to take your income and divide it by 4 and thats what you MAY qualify for.Since according to you,your income is 0 then you do the math.

 

[llfish]

Re: Loan...

About the only place you will be able to get a loan is through a loan shark. That will cost you an arm and a leg and you will pay for it the rest of your life. Take some advice from someone who has been there and done that. Start paying off your bills smallest to largest. When one is payed off put the extra money on the next largest bill. Before long you are out of debt and can save up and start paying cash for everything. Now that is fun!!!!!!!

 

[lakelover]

Re: Loan...

Here's a suggestion: Buy and read "Rich Dad, Poor Dad" by Robert T. Kiyosaki. I read this book a few years ago and only wish it had been available when I was younger. The most common-sense book about money management I've ever seen.<br /><br />You'll be glad you did.

 

[Mark42]

Re: Loan...

Got parents? Can they take an equity loan for you and you pay them back? Equity loan rates are rather low now, less than 7%.

 

[one more cast]

Re: Loan...

When I was 19 I tried to borrow $6500 to buy a used mobile home (trailer). I already owned 1.25 acres of land with a well and I had a pretty good paying job and the bank turned me down. Then my Dad went to the bank and told them to give me a loan or he was withdrawing his money and switching banks. They gave me the loan.

 

[tomatolord]

Re: Loan...

You will get the loan somewhere - probably at about 20% interest. You wont get a 20k loan that is way too much without collateral if you own your car you might be able to get more.<br /><br />I would not do it though - pay off your debts NOW - then build the equity to pay cash.<br /><br />Dont start your life by going in reverse for nothing - If you were buying a house YES - but all the stuff you are talking about will only greatly depreciate to ZERO before you have the debt paid off.<br /><br />A 4 year old couch is worthing nothing <br /><br />I started out in my apartment sleeping on the floor with only a tv.<br /><br />My debts got out of hand becuase creditors will give you all the rope you need to hang yourself. <br /><br />I recently paid off all my CC and canceled them all (20k in CC credit available)<br /><br />Now I have 1 CC with a 500 limit - which I can pay off each month with ease, the wife is moaning that we cant buy anything of "value" -<br /><br />I had 20k in CC debt and could not point to ONE thing of value that we had spent the 20k on.<br /><br />All of the 20k was C R A P <br /><br />SORRY for the RANT <br /><br />DEBT can ruin your health, life, friends family.<br /><br />I know it is hard - your friends have "stuff" that you want, big screen tv's, new cars, all sorts of STUFF.<br /><br />BE FREE of your debt - dont continue to go backwards.<br /><br />Tomatolord

 

[whywhyzed]

Re: Loan...

24 year olds should find out when Suze Orman's show is on TV and watch about 4 or 5 episodes before getting any loan or aquiring any new debt.