Quote:
Originally Posted by rawr
All banks have a low-interest credit card option, interest rates are typically Prime+3% up to Prime+12%, depending on credit rating and relationship with the bank. Tell your friend to hit up his bank and request to switch the card to a low interest one. Assuming he has a regular card currently, the interest should be around 20% so he will save quite a bit on interest alone.
He can also apply for a consolidation loan at his bank that has the credit card. These loans are about 15% interest give or take but he can opt for a higher amortization period to lower monthly payments. However keep in mind that as part of the consolidation conditions is to payout and cancel the credit card. Also, in order to be eligible for this loan, he will need to have income. If he doesn't, he will need a cosignor or guarantor.
He absolutely cannot skip payments any longer because he has a high chance the card will be written off which has a detrimental effect on his credit. His credit is already fucked up as it is.
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He did cancel his credit card, I believe he made small payment this week or last week in order to keep in good standing with the credit company and from being sent off to the charge-off area. Do you know if every bank can provide a consolidation loan even with a bad credit history?