OT - Need to vent

msarro

So, I just went to my bank to request a loan today so I could consolidate both of my credit cards under a loan. This would get me a lower interest rate, a slightly lower monthly payment, and a guarantee that they're all paid off in 5 years.

So I went in and requested the application, and just got a call back that it was denied. Because I'm a deadbeat? Because I've never paid a single bill? Because I work at mcdonalds? Because I can't afford it? Oh no.

Because my ratio of debt to income is too high.

Even though its a debt consolidation loan. Despite the fact that I have 3 credit reports sitting in front of me stating I have perfect credit. Despite the fact that my effing tax dollars are paying to bail their institution out and "restart the economy" by providing loans. I'm consolidating 2 bills that I am already paying on, and have done so reliably for more than 3 years. The amount that I'd be paying under the consolidation loan is less than I am currently paying.

Yes my debt is high - because I just graduated from college, and have close to 80,000$ in loans that I'm paying down. And - get this, haven't missed a single effing payment.

I feel bad, I kind of flipped out on the lady on the phone, but seriously. Why am I paying to bail out an institution that won't even use their bailout funds for their intended purpose?

msarro

So, I just went to my bank to request a loan today so I could consolidate both of my credit cards under a loan. This would get me a lower interest rate, a slightly lower monthly payment, and a guarantee that they're all paid off in 5 years.

So I went in and requested the application, and just got a call back that it was denied. Because I'm a deadbeat? Because I've never paid a single bill? Because I work at mcdonalds? Because I can't afford it? Oh no.

Because my ratio of debt to income is too high.

Even though its a debt consolidation loan. Despite the fact that I have 3 credit reports sitting in front of me stating I have perfect credit. Despite the fact that my effing tax dollars are paying to bail their institution out and "restart the economy" by providing loans. I'm consolidating 2 bills that I am already paying on, and have done so reliably for more than 3 years. The amount that I'd be paying under the consolidation loan is less than I am currently paying.

Yes my debt is high - because I just graduated from college, and have close to 80,000$ in loans that I'm paying down. And - get this, haven't missed a single effing payment.

I feel bad, I kind of flipped out on the lady on the phone, but seriously. Why am I paying to bail out an institution that won't even use their bailout funds for their intended purpose?

VballLeash

That sounds ridiculous to me! Especially because you paid everything on time, just crazy! Sorry to hear about that, go for a run that could help clear your head :happy:

~Leash

Cinnamon_Kisses

That sucks :frown: Is there any way around it?

And $80,000 :noway: I won't moan about my £3,000 a year tuition fees ever again!

Susibug

That sux...they're betting you'll get the loan and then run up the credit cards again...

........congrats on the weight loss...WOW... 97lbs.....:happy:

vanessadawn

You should go in and talk to someone. They won't okay the loan, because from the numbers it seems like you won't be able to pay them off on your current budget. Perhaps you could save up, pay off a portion of some of your debt, and then reapply? They should be able to advise you on how to manage the debt, also if you talk to your credit card reps directly they usually just want to get paid and can sometimes negotiate a deal. Good luck!

MTGirl

Oh man. Msarro - that really stinks. Maybe someone else can help you?? Bank shop a little - meet with the agents in person and tell them you'll switch banks if they will help you. My old boss couldn't get a loan for a long time, then he happened to walk into a bank that had a sign advertising a special rate and he talked to the loan officer, they loaned him the money and the switched his accounts to them and is a faithful customer. Keep trying - someone will be able to help you.

Nich0le

Oh, it gets better. BEFORE the tax bailout crap my husband and I were trying to get a lower interest rate and of course no one was lending so poo on that... but AFTER the bailout we decided to try again, found a program that SHOULD have worked for us and we were denied by 6 banks, not because of bad credit etc....BECAUSE WE WERE TOO GOOD. Yup we were told IF we were to get at least 4 months behind on our mortgage AND not have that money in the bank to show an inablitiy to get caught up we would qualify.

I guess being responsible just became irresponsible :noway: :noway:

MyKids04

I am sorry you are going through that. I really think our country needs to follow some advice my mother gave me when I move out on my own.

She knows I have a big heart and will help anyone I can. But she told me that big heart of mine will also get me into financial problems quick.

So she told me before I help anyone or lend money to anyone I must make sure I take care of home first.

Don't get me wrong I care about problems in other countries but we have issues here we must work on first.

And with people like you and I who work and bust our butts to do the right thing and I see you are not asking for a hand out just help makes me upset because they won't even help or even find out why you are in the situation you are in and I see education was the cause of alot of your money problems.

I hope it all works out.

MyKids04

I am sorry you are going through that. I really think our country needs to follow some advice my mother gave me when I move out on my own.

She knows I have a big heart and will help anyone I can. But she told me that big heart of mine will also get me into financial problems quick.

So she told me before I help anyone or lend money to anyone I must make sure I take care of home first.

Don't get me wrong I care about problems in other countries but we have issues here we must work on first.

And with people like you and I who work and bust our butts to do the right thing and I see you are not asking for a hand out just help makes me upset because they won't even help or even find out why you are in the situation you are in and I see education was the cause of alot of your money problems.

I hope it all works out.

heather0mc

have you tried a non-profit credit counseling? i used CCCS 3.5 years ago. My debt was $28k and is down to less than 6k - wooooo! they just worked out a deal with the credit card companies to lower my rates. i make a monthly payment to them and they pay the companies and send me one monthly statement. its been a scrimp and pay few years, but i will be more than excited when those cards are paid off. MORE THAN EXCITED i say! :drinker:

be aware of the FOR profit companies. they will getcha!

good luck!

GIBride01

File it away in the memory banks..I remember trying to do the same thing years ago, not long out of school and hubby and I wanted to lump the remaining balances on our car loans together and refi to save some $$. Nope, our then bank said debt to income ratio was too high, same thing as you..due to my student loans. Few years down the road, car and truck paid off anyways, student loans paid down (not off yet:grumble: ), no credit card debt, some money in savings and investments and a good income...guess what, the banks now offer us loans unsolicited. I have a reeeaaallllyyyy good memory, guess who isin't going to get any of my money to play with? Just keep knocking away at the credit card debt, pay the minimum on one and throw as much as possible at the next, trust me, they will get paid off and you can tell the stupid banks to pucker up!

Phoenix_Rising

I feel your pain. Take away my student loans and my debt to income is reasonable. Consider my student loans in that ratio, and it's only by sheer imagination I am able to afford to live.

Bank shop. Try somewhere else. If you have a credit union, try them!

I took my husband's debt, consolidated it all to one credit card with a zero intro fee for a year. Paid like crazy on it. At the end of the year (just before that one year mark, mind you, or they fee you all the interest you WOULD have paid), I moved it to another card with a great offer rate. You pay a one time fee to move it, but avoid monthly interest. Eventually, some slimey Citibank loan company gave us a rate for a fixed pay off (like you said, have it paid OFF in 5 years), so we went with them. Later, we moved it to a credit union.

Double check not-for-profit Credit Counseling Companies. I use to collect credit card payments, and many folks who used them complained they'd already sent CCCS their payments. (You send one lump monthly sum to CCCS who pays your bills from that money.) Also, from my understanding of the process from almost a decade ago, it DOES report on your credit that you used a counselling agency to negotiate rates and debt amounts.

msarro

I feel your pain. Take away my student loans and my debt to income is reasonable. Consider my student loans in that ratio, and it's only by sheer imagination I am able to afford to live.

Bank shop. Try somewhere else. If you have a credit union, try them!

I took my husband's debt, consolidated it all to one credit card with a zero intro fee for a year. Paid like crazy on it. At the end of the year (just before that one year mark, mind you, or they fee you all the interest you WOULD have paid), I moved it to another card with a great offer rate. You pay a one time fee to move it, but avoid monthly interest. Eventually, some slimey Citibank loan company gave us a rate for a fixed pay off (like you said, have it paid OFF in 5 years), so we went with them. Later, we moved it to a credit union.

Double check not-for-profit Credit Counseling Companies. I use to collect credit card payments, and many folks who used them complained they'd already sent CCCS their payments. (You send one lump monthly sum to CCCS who pays your bills from that money.) Also, from my understanding of the process from almost a decade ago, it DOES report on your credit that you used a counselling agency to negotiate rates and debt amounts.

Yep, credit union is my next step. I only tried a bigger bank out of hope that they'd give me a lower interest rate. Both offer interest than the credit cards so its not a big deal. It's not even a lot of credit card debt since I've been paying on both and not using them since college. I just want them put together so I can cut up the cards and be done.

PureAndHealthy

Hey I know this is an old thread but oh my goodness, you GOTTA check out Dave Ramsey. We went from thinking we were going to have to file bankruptcy to being COMPLETELY debt free without credit counseling services, screwing up our credit, or paying anybody to do anything for us. We will NEVER go back in debt for anything but a house someday and even then we'll do a shorter term and fixed rate. Living debt-free feels GREAT! Please please PLEASE go to DaveRamsey.com and start reading his stuff. He's awesome!