Consolidation Loan - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Engine09 · 07-28-2006, 01:59 PM

Is it possible to get a consolidation loan to take care of a credit card and some student loan debt? CIBC told me that they will not do unsecured loans anymore and I do not have property or anything like that.

Should I even bother calling around?

shane_c · 07-28-2006, 02:29 PM

Quote:

Originally Posted by Kryzsky

Is it possible to get a consolidation loan to take care of a credit card and some student loan debt? CIBC told me that they will not do unsecured loans anymore and I do not have property or anything like that.

Should I even bother calling around?

I tried to do the same thing recently except mine was to consolidate my car payment and credit card. I went to RBC and before I went in was basing the loan at the 6% prime rate on their website. But the actual loan would have been at 9.5%. Needlesss to say I left because my current monthly payments are lower than the loan from RBC would have been for.

Lanny_MacDonald · 07-28-2006, 02:30 PM

Too bad you don't live in the States. You get solicited for consolidation loans everywhere you go. You can get consiolidation loans for your consolidation loans! And when you take out a consolidation loa you get a credit card with a billion dollar limit, so they can offer you another consolidation loan in another year! God bless America!!!

Lurch · 07-28-2006, 03:09 PM

Also, you probably don't want to consolidate student loan debt as it is tax deductible. Unless you get a killer rate on the loan, there is no benefit and probably a cost to using debt to pay off your student loan.

MoneyGuy · 07-28-2006, 04:14 PM

Quote:

Originally Posted by Lurch

Also, you probably don't want to consolidate student loan debt as it is tax deductible. Unless you get a killer rate on the loan, there is no benefit and probably a cost to using debt to pay off your student loan.

Lurch is correct. You might be able to find a financ institution to do this for you, but it may be difficult given your circumstances. Continue checking around.

I'm a Certified Financial Planner.

Engine09 · 07-31-2006, 11:02 AM

Definitely depends on interest rates, that will be the dealbreaker.

How much of a difference do student loan payments make at the end of the tax year if I'm paying $4K a year.

V · 07-31-2006, 11:46 AM

You pay $4K a year on your student loans? Ouch, I pay $730.

In any case, that's a whole lotta tax deductible interest. I wouldn't be paying that off with a consolidated loan.

HalifaxDrunk · 07-31-2006, 11:49 AM

The big banks seem to be getting out of consolidated loans as they represent a lot of unsecured lending and are a large % of loan loss for them. You should try a credit union, they still offer them. I’m not sure you will get prime anywhere but you never know.

Engine09 · 07-31-2006, 12:05 PM

Quote:

You pay $4K a year on your student loans? Ouch, I pay $730.

In any case, that's a whole lotta tax deductible interest. I wouldn't be paying that off with a consolidated loan.

Actually, $4,368 a year, for another 9 years.

The interest is probably half of that amount.

Antithesis · 07-31-2006, 01:49 PM

Quote:

Originally Posted by Kryzsky

Actually, $4,368 a year, for another 9 years.

The interest is probably half of that amount.

I would say it's at least half of that amount, given my experiences.

Engine09 · 07-31-2006, 01:58 PM

When I'm done making payments I'll have paid $12,775 in interest. So yeah, it's a chunk.

Antithesis · 07-31-2006, 03:22 PM

Sounds like you just got out of school - I did a couple years ago with very similar loan situations as you have. Everything I've done to this point suggests that student loans are a low-priority in terms of paying off - you get so many tax credits out of them. If it's possible, I'd really suggest you not consolidate.

SpecialK12 · 07-31-2006, 04:11 PM

It's funny that this thread came up as I have been thinking about doing the same thing. I have student loans with the federal gov, alberta gov and b.c gov (just started repaying this month - the min. amount on each). My husband has one with the federal gov - i was thinking it was silly to be putting the minimum amount down on four seperate loans. I guess this isn't necessarily the case??

Engine09 · 07-31-2006, 04:17 PM

Very true. The only reason I was thinking of consolidating is to simply things, and to force myself to pay them off faster with a decent payment each month.

Antithesis · 07-31-2006, 08:07 PM

Quote:

Originally Posted by SpecialK12

It's funny that this thread came up as I have been thinking about doing the same thing. I have student loans with the federal gov, alberta gov and b.c gov (just started repaying this month - the min. amount on each). My husband has one with the federal gov - i was thinking it was silly to be putting the minimum amount down on four seperate loans. I guess this isn't necessarily the case??

I'm no financial planner, in fact, I think my knowledge in the financial area pales in comparison to many on this site, however, I am (unfortunately?) fairly fluent with student loans.

You get a decent interest rate so you're not getting it handed to you there, and any interest you pay is considered tax-deductible ... if you have other debt, (credit card, LOC, car, anything) I'd say it's advisable to worry about increasing payments there rather than student loans.

That being said, when I graduated two years ago, I had a minimum loan payment of $323 monthly, I told them to just round it up to $350, which they calculated would take 8 months (!!!) off of the nine year repayment schedule ...

Flames09 · 12-18-2007, 11:45 PM

Okay I hate bringing up old threads but I need to ask. I've gotten myself into just under $5000 in debt (on credit cards) and I would like to consolidate my debt. Question is because I'm in school, and have $5000 in debt, and have a current student loan, the bank won't give me a consolidation loan. Do I have any other options??

4X4 · 12-19-2007, 01:03 AM

Quote:

Originally Posted by Flames09

Okay I hate bringing up old threads but I need to ask. I've gotten myself into just under $5000 in debt (on credit cards) and I would like to consolidate my debt. Question is because I'm in school, and have $5000 in debt, and have a current student loan, the bank won't give me a consolidation loan. Do I have any other options??

Please don't take this like some kind of holier than thou retort... I've been where you are.
$5000 is not much debt. If you want to do anything at this point, find a way to pay it off without help. You'll learn some fine money management skills.
It may seem like an insurmountable task, but five grand can be paid off pretty quickly if you apply yourself. Minimum payments wont get it done (as I'm sure you've already realized, hence the investigation into consolidation). But consolidation doesn't help you all that much. Only unless the consolidation cancels the cards you're spending on. If your loan pays out the cards, but then you have a clear balance on all of them, it wont be long before you're $10,000 in debt.
I learned this lesson. I had a $1000 debt on a visa card when I was 18. Then MC sent me a card with a $3000 limit and enticed me to put my visa balance on the MC. Oh, I did that... Then I spent my visa again, bit by bit.

Find a part time job that you hate. The more you hate it, the less you'll want to be in debt. This is a lesson you'll only ever have to learn once.

Flames09 · 12-19-2007, 01:13 AM

Quote:

Originally Posted by 4X4

Please don't take this like some kind of holier than thou retort... I've been where you are.
$5000 is not much debt. If you want to do anything at this point, find a way to pay it off without help. You'll learn some fine money management skills.
It may seem like an insurmountable task, but five grand can be paid off pretty quickly if you apply yourself. Minimum payments wont get it done (as I'm sure you've already realized, hence the investigation into consolidation). But consolidation doesn't help you all that much. Only unless the consolidation cancels the cards you're spending on. If your loan pays out the cards, but then you have a clear balance on all of them, it wont be long before you're $10,000 in debt.
I learned this lesson. I had a $1000 debt on a visa card when I was 18. Then MC sent me a card with a $3000 limit and enticed me to put my visa balance on the MC. Oh, I did that... Then I spent my visa again, bit by bit.

Find a part time job that you hate. The more you hate it, the less you'll want to be in debt. This is a lesson you'll only ever have to learn once.

Trust me I've learnt my lesson, I know I can pay it off, and I have it figured out on how to it's just the interest on one card that is driving me crazy. I'm one of those people that can't stand having multiple payments, having one payment would make life soo much easier for me. I have a job, and I make more then the minimum monthly payment, but lately my money has been going towards helping my parents out and I'm in full time school. It seeems as if the debt just keeps getting bigger and bigger...

Flames89 · 12-19-2007, 06:05 AM

I don't think there is a point in consolidating, because the interest rate you are receiving on your student debt will be considerably lower than any "new" debt you create.

You could apply for one of the real low rate interest visa cards, then chop up yours until you get back in balance. Or go to another bank with all your statements and see what they will do - if they are smart, they will take your business because they will earn a lifetime customer for low risk (<$5000)

Deegee · 12-19-2007, 06:57 AM

Quote:

Originally Posted by Flames09

Okay I hate bringing up old threads but I need to ask. I've gotten myself into just under $5000 in debt (on credit cards) and I would like to consolidate my debt. Question is because I'm in school, and have $5000 in debt, and have a current student loan, the bank won't give me a consolidation loan. Do I have any other options??

Try a Credit Union. Some of their lending can be very loose, depending on what one you go to.