SUCCESS STORY: Debt Consolidation
A retired woman owned her primary residence in the Los Angeles area and a rental home in Orange County, but she had significant credit card debt and a high interest rate on both of these homes. Her goal was to consolidate her debt and reduce her interest rates.
She had been to several different lenders who refused to help her. No one would approve new loans because her existing monthly debt payments were too high in relation to her monthly income.
But her credit score was great!
I collected all of her information and analyzed the data. She had significant assets in a retirement account that were available to be tapped into.
I proposed that she take a loan from her retirement accounts to pay off some of her credit card debt and bring her debt to income ratio to an acceptable level.
I also encouraged her to run this by her financial advisor first!
Then we refinanced both homes, took cash out of the primary residence equity and returned the funds to her retirement account. This lowered her payments and reduced her interest rates as well!
This was a success because I was able to look outside the typical set of qualifying guidelines to propose an alternate solution, and welcomed the input from her financial planning representative to ensure we were giving her the best option for her situation.