That really drives me up the wall, the whole idea of demanding that someone go deeper into debt to pay off one debt. That's totally illogical and does nothing to help the person actually get out of debt.

No, they are not asking for any money up front. They're a large, licensesd mortgage broker. As a matter of fact they were referred to me by an accredited debt counselling agency that I'm currently working with.

Quick summary: The credit counselling agency was able to convince some of my other creditors to agree to a consumer debt prosopsal but some of my other creditors did not agree to the proposal (one of which is asking me to take out a home equity loan or a second mortgage). So as a last resort (in the face of legal civil threats), my credit counselor suggested I talk with a mortgage broker. I knew my credit poor so I wasn't exactly expecting to get a prime + 1% as an interest rate, but I thought I'd get something at least palatable but these rates I'm being asked to pay aren't much better than the kind of loan practices that desperate people face back in my home country of the Philippines! Live and learn I guess....

are they asking for money up front?
What's the name of the firm?, and are they legitimate?

In a nutshell, the lender I approached was going to setup me up with a $23000 loan (to settle some other debts as well), but the net amount that I was going to actually get in my hands was about $16000. The true interest rate was going 16%, plus the cost of home appraisal ($300). All this from a lender who said they could 'help" me! :->

Holy Five Star Mortgage! I thought I was exaggerating. By the way, might I ask how much they were high pressuring you into borrowing to cover your credit card bills?

By the way, not all of that money goes for legal and brokerage fees. There's usually secret collector kick-back fees too.

Ray

You know Raymond, the numbers you quoted are pretty much right on the mark. Needless to say, I won't be pursuing that option.

Oh, go ahead; there's only $10K in administration, appraisal, legal and brokerage fees and a 10% to 18% interest rate.

Woops, I forgot your credit is not that good in the first place? Better make that $20K and 15% to 22%.

That's why I keep saying: collection agencynomics is replacing economics.

Ray

Hello

The follks at CDR want me to take out a home equity loan to settle a credit card debt that has been passed on to them. Don't they realize I won't get approved with my credit rating? Why won't they listen?

Thanks!