These files are specifically on 10 year debt consolidation loans. Our top three here were picked based on their location and amounts, and that fact that all three of the applicants were living like douchebags. Doesn’t mean they ARE D-Bags….no one is – they were just acting like it at this time in their lives.
There’s always time to get real with yourself and others.
The credit ratings of the applicants ranges from bad to fair in nature, but they all had job description titles that were “cringe-worthy”.
We have changed the first names of the borrowers to protect their privacy, but that’s all that was changed. All details of their 10 year terms are accurate.
The second one discussed is for $15000 for Albert who is a loan collections agent, the third is $25000 for Melanie who works as a self-described “thought leader”, and the first is a $50000 consolidation was for Mark who is a political activist (and I won’t reveal which party – you can probably guess that for yourself).
These amounts are fairly common for consolidating products. Most people round up their debt when they’re trying to consolidate everything, so that’s why we used the round numbers of 15000, 25000, and 50000).
10 Year Debt Consolidation of $50000 For Mark
Mark is a classic douchebag in that he’s a self described political activist and he brags about dirty little under handed tricks he plays against his opponents. However he can’t brag about his mounting personal debt and stupid spending habits. He admitted that many times he’ll buy all the rounds at a bar outing just so he can play the big shot for the night. This is a typical play for many dip-shits.
Almost the entire $50000 of the consolidation loan is on his credit card balances. He racked this up with nights in the bars and on travel expenses. Being a big-shot-little-shit he needs to impress his party faithful that he can fly to locations for his particular brand of dick-head dirty tricks. He also brags about working with the infamous James O’Keefe (a sure giveaway to what party Mark works for)
Luckily Mark is single so all his overspending and shoulder chipping doesn’t affect a spouse or children. It’s best that he doesn’t reproduce anyway.
He also likes to visit that casinos because he thinks he’s a profession gambler.
Nope – that’s just another title he likes to use to impress people with. He actually listed this as one of his job descriptions on his loan application. Classic douche play.
So the important factor for Mark is to try and go forward after his consolidation wisely. He would be well advised to rein in his spending, and stop trying to impress people.
Ego can be really expensive.
How Ego Can Ruin Your Credit Rating
This is something we’ve rarely discussed here at DebtFiles.com, and that’s how ego can destroy your credit rating. Your humble narrator is guilty of exactly this.
As matter of fact I have to admit that was guilty of douchebagism on occasion when I was younger. Thinkin’ I was kind of a big deal.
I just HAD to spend over $20,000 on making CDs – hiring a band, recording, playing live – etc. The expense was part of the reason why I claimed personal bankruptcy. It was childish fantasy I had since I was 10 years old – I wanted to be a successful musician. As a kid I was bullied quite a bit for disfigured legs and I swore I would show all of them by becoming a star – holy crap that’s SOOOO douche.
The same goes for anyone who spends a ton of money on credit trying to prove something to everyone. This is likely the perfect description of a D-Bag. For some people it’s high end cars, fancy houses, clothes, swimming pools, RVs, boats, travel, etc. For some people it’s not even money that they try to show off. It’s power, prestige, notoriety, etc.
No matter how you slice it debt is usually a bi-product of ego.
Mark’s Credit Card Balances
As for the 10 year (120 month) aspect, Mark was like anyone else in that he wanted the lowest possible monthly payment with the lowest possible interest rate. He needed an interest rate that was much lower his 5 credit cards. He had some cards as low as 18% interest but had 2 cards that were higher than 20%.
His total credit balances came to $40000 and he had $10000 owing left on his truck loan. He didn’t want to go the “debt relief” or debt settlement” route.
Why 10 Year Debt Consolidation Loans (120 Months)
10 years (or 120 months) instead 3 or 5 years makes the payment lower each month, but in the end you pay a lot more interest.
But in the minds of the broke, indebted, and desperate, all they can think of is way to get free of their high interest debt – and they want to pay the lowest possible interest rate and lowest possible payment each month.
Doesn’t usually happen unless the principal is quite high – like about 100 grand say. Banks don’t like giving out smaller loans for extended amount of time. Because of this (and not that uncommon) people who have under $10000 dollars in debt will go ahead and spend more money using credit cards to bring their total balance up to the $10000 amount.
Sounds ridiculous doesn’t it – but depending on what you’re buying with those credit cards it could actually work. And example would be purchasing items you can use to make money with.
After Consolidation Mark Screwed Up (bigly)
So in closing this file – Mark was approved for his consolidation loan and he make the exact mistake we so often warn against.
Mark got his break from a local credit union for his consolidation loan and immediately proceeded to use his credit cards again. I figured it was easy enough to consolidate so he may as well keep on the same track – assuming he was going to find a way to pay off all the debt later.
Ah…..nope. A year later he did a debt relief/settlement program, and 5 months later he claimed bankruptcy.
10 Year Debt Consolidation Loan for $15000
And then there was Albert.
Albert the debt collections agent wanted a 10 year debt consolidation loan for $15000. He didn’t make a lot harassing and shaming people into paying their debts (I know….a real shame), so his debt started growing because he was living beyond his means.
True hypocrisy in it’s purest form….right. Only thing worse than a douchebag is a hypocrite who’s a douchebag.
Albert went on and on in our interview when we discussed his tactics for doing collections. He was proud of how he could wield his dirty tongue against consumers who weren’t paying their creditors. He calls them names, threatens them with legal action and he makes sure to call at dinner time. A real professional in his mind. In my mind a real loser.
It’s fitting that he ended up in debt to the point where he couldn’t keep up with his balances.
It’s perfect justice that HE WAS GETTING CALLS FROM COLLECTIONS AGENTS like himself. The funny part is they used the same fear-based shaming approach that Albert uses against others.
10 Year Consolidation Loan Breakdown
Albert owed $15000 total and at least ALL OF HIS DEBT was on credit cards. Much easier to deal with than owing little amounts all over the place. He had a balance of $5000 with Visa, $3000 with MasterCard, and $7000 with American Express. I’m surprised he didn’t have more considering his spending habits.
To get approved he used the DebtFiles.com service to submit a pre-application in the comments area. After that a lender in his State contacted him and they went from there.
10 Year Debt Consolidation Loan for $25000
And last in line for the 10 year debt consolidation loan is for Melanie the “thought leader” – no bullshit….she actually calls herself a thought leader. This is how douchebags think – they think they’re just a little bit smarter than the average bear, and for some reason they think they’re actually superior than most people.
No matter how much debt they carry, how much shame they face, they always show a front of superiority.
So our “thought leader” needed $25000 dollars consolidated because she likes to spend money shopping for clothing. Most egomaniacs like to dress themselves up in the latest trendsetting garments, and she was no different. Even during our interview with Melanie she couldn’t keep her eyes off her reflection in the office window.
How do they live with themselves?
She went on to discuss her life’s problems and how it was everyone’s fault except her own that she was in debt hell.
She blamed it on her partner who was actually the one in the household who made the lion’s share of the money. This is the worst thing you can do when it comes to your finances – you have to take responsibility for yourself and make sure all your creditors are paid on time.
You will never get out from under your personal debt unless you fully understand HOW you got there in the first place. You have to know exactly where you made your mistakes – when did you start spending more than what you earn?
Melanie’s Credit Card Consolidation For Ten Years
In this file Melanie is down as using a local credit union to apply for her credit card consolidation. This can be an option and you may get a better interest rate and service. It’s great if you use a credit union too because you are supporting a local financial institution.
Her credit card balances were as follows (rounded up):
- Visa – $8000
- MasterCard – $7000
- Discover Card – $5000
- American Express – $5000
Rates varied because she had missed payments on three of her credit cards which increased the interest rates (in a northern direction).
The credit union representative went through the normal procedure for approving a lending product. They checked Melanie’s credit – and it was LOW. Her score was only an average of 400 which well below the safe lending threshold of 580/590.
So in the end result Melanie was NOT approved for any kind of financing until she had her credit score cleaned up – and that was going to take years.
The strangest thing happened in her interview and we’ve never seen it before. She actually mentioned she was considering a very bad choice – she thought about embezzling some money from her place of employment. She told us that she had a plan.
This kind of thought process can only happen when the debtor is a true sociopath. It has to be someone that’s so selfish they would consider trying to steal somebody else’s money.
She even went as far as creating a flow chart plan for how she would appropriate the money. We won’t go into great detail on her fantasy, and we won’t mention where she works – not even the field or State.
Melanie said she could pay off all her debt 50 times over. That’s a lot of money to be lifting. She never did exercise this option, but the fact that she even considered it is dangerous.
It takes a total douchebag to even consider breaking the law in order to relief the financial burden of their debts. Only the ugliest of minds would even contemplate stealing money just because they HAD TO HAVE IT EASY.
There is no easy when it comes to money unless you win a lottery or you inherit it. The wide and vast majority of Americans do not belong in the above two categories so their only option is to find a way to completely overhaul how they live.
So Melanie can go straight to hell.
Conclusion of 10 Year Consolidation Loan Files
So that’s it for now. I know I spoke harshly of the above debtors but what else would I do – there just wasn’t much for redeeming qualities in them at the time.
A 10 year debt consolidation can easily be approved if your credit rating is fair or high (like 650 to 860). No problem at all and your interest probably won’t be that bad.
Your interest rate will depend on your score and there usually isn’t a lot of wiggle room. I suggest you first find out what your credit score is and then go from there. I wouldn’t apply with dozens of lending institutions willy-nilly. I would take each bank one at a time and I wouldn’t even bother applying until me score was over 650.
Any credit score lower and you probably won’t be saving yourself much in interest.