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Posted in Auto Loans
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wbls03

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consolidate question
Alright, I have had a terrible last couple years when it comes to debt. I lost my job and had to put bills on my credit card, take out a personal loan and later totaled my car and had to get an auto loan on top of that.

Currently I have about $1400 in credit card debt @ 24% interest rate ($60 monthly payment), about 900 on the personal loan at 33% interest rate ($60 monthly payment), and the auto loan is around 3600 with 25% interest rate ($133 Monthly payment). My I tried taking out personal loans with banks and looking for credit cards in the 3 months I did not have a job, so I have 11 inquiries on my equifax report. and my credit score with both equifax and transunion is sitting at 642.

In the past I missed payments twice, one lasting a little over 30 days and one for a little over 60. That was about two years ago. I have been at a good job for 3 months now grossing 2400 a month.

My main question is what should I do and what can I do to get these combined to one simple payment with hopefully a lower interest rate. My first payment to the auto loan was all interest minus $20. I am 23 and a responsible individual, just had some rotten luck with some things.

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With your score,

I wouldn't try any new loans.  YOur getting those high interest rates because of your score and that won't change until your debts are paid down and those late payments age.  Those inquiries aren't helping any either so I would suggest not appling for new credit until those age out. (Rule of thumb, If your denied once, chances of getting approved go way down for at least 6 months. If your denied, Do not apply again. Creditors will see you as desperate and tend to deny you right away with out any other consideration)

If I were you, (and I have been there) Pay off your debts as quickly as possible,  Make double or tripple payments on everything if you can.  Figure out what you can reasonably afford to pay off your debts and pay as much as possible each month,  start with the highest interest rate and then work your way down.

Your earning nearly 30K a year,  Your total debt is less than 6K.  Your interest on that is roughly $1450. a year  Thats a lot.  If you paid $620./mo on this debt you could be paid off in a year.

Be aware that your score will probably be slow to rise because of those late payments and the number of Inquiries. And in trying to consolidate that debt you would probably get a very simular interest rate to what you already have if you could find a lender anyway.

Good Luck

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