Debt Management

Borrowing to Pay Your Debts

Borrowing to pay your debts can make your monthly payments become more manageable. Loan sources include:

Borrowing From Family
Friends or relatives may help you with a loan. They are more likely to be supportive, less likely to require your home, car or other property as collateral, and their interest rates should also be lower. Explain your situation and show the bills you will pay with the loan proceeds. Present your future budget. Offer to pay reasonable interest even to friends and family.
Borrowing From Lenders
Consumer finance companies grant secured and unsecured loans, but at higher interest rates, because consumer finance companies will often accept less than perfect credit.

Avoid the unscrupulous lenders who are anxious to exploit people who have financial problems. They usually use misleading tactics, charge exorbitant interest rates, and collect "advance fees" for loans that never materialize.

In addition to offering the loan, some firms offer to negotiate settlements with your creditors. Be advised, these firms typically charge up to 35% of the amount you owe for this service.