r/Debt • u/ThicccThottie • 19h ago

Debt consolidation loan providers?

Hello Reddit, I am looking for debt consolidation loan options, I am a 24yr male with $8k in debt. I’ve tried a couple places with no approval and I’m down to the wire. Do you guys know of any providers that can issue me a debt consolidation loan? I do not ow my car yet and I have no collateral, 605 credit score.

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1

u/Mountain_Vast_4314 19h ago

Sofi, Best Egg, Lending Club

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u/attachedtothreads 18h ago

What kind of debt is it? Credit card? Tribal loan? Payday? Something else?

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u/ThicccThottie 18h ago

Credit card 😔

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u/attachedtothreads 17h ago

Contact your credit card companies first for a hardship program where they lower your interest rate in exchange for freezing or closing your accounts. No guarantees that they'll do this and some of the companies only work with the non-profit debt management program the National Foundation for Credit Counseling (NFCC).

Try the NFCC for the cards that refuse to work with you. There's a small monthly fee of $5-$10/account you enroll with them and a one-time setup fee of $50-$75. Accounts are closed. 

Opening a new credit card, loan, or other line of credit voids your contract with them. Talk to them about any potential plans you may have to take beforehand, like to fix a car issue you need to take a loan. I'm unsure what they can do, if anything.

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u/ThicccThottie 17h ago

I had no idea this existed, thank you!

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u/chocoboracer_ 17h ago

Your debt probably isn't still owned by the original creditor. Check your credit report to see who is trying to collect.

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u/attachedtothreads 17h ago

You're welcome 😊 They may be closed on Monday for Labor Day, but try Tuesday. I think also there's an online form you can fill out. 

Good luck!

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u/chocoboracer_ 18h ago edited 18h ago

All debt consolidation is a scam. You are going to give a consolidation company money that's put into a pool. Your creditors will all keep saying, "I want more than what's in the pool" until the consolidation services gives the entire pool to one creditor. Then you pay into the pool again to start the process over, minus the consolidation company's fee. This process could take years and the statute of limitations on each debt could expire.

I deal with these consolidation companies for my job. It's better to negotiate with each creditor yourself or just let the statute on each one expire.

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u/Pom-4444 15h ago

Lightstream is great. Low rates and no origination fee.