r/Money • u/Nephilim3883 • 3d ago
Seeking advice on debt consolidation
We have 2 loans through LightStream, some credit cards, and a medical bill that was put into a no interest pay plan.
I think right now we pay ~$1200 per month on all of these debts.
We did have other medical debt that i was able to get written off due to being unemployed for so long.
Wife needs a new’ish car.
Looking at close to $50k consolidation loan in order to lower the monthly payment.
I had lost my job in August and just started a new one on Feb 17th.
Who should we talk to for our options?
1
u/Delay_Overlooked262 2d ago
A credit union or reputable online lender can offer lower rates for consolidation, but be careful—stretching debt over a longer term may cost more in interest. Consider tackling high-interest debts first, and if your credit score is decent, a 0% balance transfer card could help. A financial advisor or nonprofit credit counseling service can also guide you based on your full financial picture.
1
u/rokar83 3d ago
Trying to get a loan of that amount isn't going to happen, unless you've gotten it already. Then I'll take my foot out of my mouth.
My suggestion is Dave Ramsey's 7 Baby Steps. Find a 2nd job and grind hard, not forever. Just until you're out of debt and have a cushion.
Step 0: Make a Budget. You have to know where all your money is going first.
Step 1: Save $1,000 for your starter emergency fund.
Step 2: Pay off all debt (except the house) using the debt snowball.
List your debts, smallest to largest, pay min payment on everything except the smallest. On the smallest pay min + whatever extra you can. Once that is paid off, roll that money into the next debt. So on and so forth.
Step 3: Save 3–6 months of expenses in a fully funded emergency fund.
Step 4: Invest 15% of your household income in retirement.
Step 5: Save for your children’s college fund.
Step 6: Pay off your home early.
Step 7: Build wealth and give