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Taxtom, Accountant
Category: Finance
Satisfied Customers: 2364
Experience:  25 Years in preparing Personal and Business Tax Retuns
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I am in debt. I dont need debt counseling, I am a very responsible

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I am in debt. I dont need debt counseling, I am a very responsible person financially. Unfortuantely, my child's father has been out of work for two years and has not suported her the whole time. My taxes have risen and I've gone through my 12 month "emergency fund." Now, for first time in my life, I am in alot of credit card debt. it was completely unavoidable. should I look into consolidation loans? will that hurt my excellent credit score? If i should go that route, is an on line service like lending tree the way to shop around? i have a decent amount of money in my 401 but worry about tasking a loan. in this market, you never know what can happen to companies and i dont want the additional stress of knowing i would have to pay back a loan in 3 months if I were to lose my job. ive been with my company for 9 years and i appear to be stable but you just never know.
Submitted: 6 years ago.
Category: Finance
Expert:  Taxtom replied 6 years ago.
Hello, A consolidation loan shouldn't hurt your credit. Before approaching online companies check first with the bank you do business with or perfably a credit union who may have better rates. If you have equity in your home it would be easier to secure your loan. Have your budget plan ready knowing what you currently spend and what you can afford. Be realistic don't plan on income from child's father and have your tax forms (last years if you haven't done your taxes yet) and W'2. You can mention how you arrived in this position to loan officer but they will be most interested in if you can pay the loan back. Although you don't fit in the normal person I would suggest credit counseling to they do have some ability to get you better interest rates on your credit cards if you can't get a loan. If you go into an agreement with a counseling service it may ding your credit slightly for the short time. Also don't forget credit card companies are trying to hold on to their good credit customers and sometimes a phone call to customer service can get you a reduced rate. If all else fails and you need to get a consolidation loan then stick with your larger companies like Bank of America or Wells Fargo, you are looking for a replacement loan not a company that you pay and they pay your debts. Thanks Tom
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