Originally Posted by
flyerfly
I too have a Key Alternative Loan. I would suggest the book Total Money Make Over by Dave Ramsey. This book taught me to suck it up and pay the bad boy off. First off you don't want to resort to debt consolidation right now when if you cut say beer, eating out, new clothes, movies out of the budget and put it towards paying off the debt you can probably make it.
Debt consolidation really hurts your credit. Not saying its a bad thing to do but give starving a try first. I used to sit at the end of the month and wonder where all my money went. Now I sit at the begining of the month and tell my money where to go. I have 3 credit card payments, car insurance, $640 key payment, $450 rent, and a $123 cell phone bill. By sacrificing a lot and budgeting very tightly I am able to make it through first year pay. I was a TSA and now am in training at AWAC.
Get that book its amazing and a good read! Good luck!
I don't think he's talking about the same thing. Debt consolidation doesn't hurt your credit unless you seek debt relief. If you hire a company to lower your interest rates and force your creditors into your terms then yes your credit will take a hit, as it should. But if you consolidate by finding a creditor that will pay off your loan and intern give you a lower interest rate then that doesn't hurt your credit. Yes you do take the 2 point hit when the run your credit score but it will rebound in less than 2 months. This is common practice!!!!
Take a look around, it shouldn't be hard to find a creditor that will give you a better rate seeing banks what business. Key Banks as well as everyone else's rates are variable, when the new rates come out in about a month your interest rate will change again and then again down the road. Sometimes up and sometimes down. Fixed rates are for Federal loans and Key Bank loans are not Federal. My advice, don't let the payment kill you. You are allowed deferments and forbearance based upon your current situation. This allows you to hold off paying until you can afford to. Yes the interest continues to build with out any principle being chipped away but at least you can survive until 2nd year pay. Also talking to them about reduced payments. Usually creditors are inclined to allow reduced payments for a time period, make the payments interest only until you can afford more then add what you can. To them some money is better than no money!!!!
But, don't lesson to me. Call Key and explain your situation, make sure you're truthful and if you have to speak to a supervisor then do so, they can do a lot more for you than the under paid drones that work the call center phones. BTW, I have a degree in Finance but I'm no expert. Take it for what it's worth. Debt consolidation with out debt relief will not hurt your credit score. People do it all the time with student loans, including yours truly.