My banking institution informs me that they are unwilling to grant a home (paid off) equity loan to pay off credit card debt, as my income to debt ratio is too great. How can I obtain a loan to pay off debt when lenders are unwilling to make a loan based on that debt?
This is a catch 22, but the reality is that many, many borrowers will go back to the credit cards and incur the debt again. Customers cut the cards u, but later request replacements and make charges. Then the borrower has even more debt and more of a problem. Debt consolidations are difficult to get for this reason. You can try another lender, as different banks have different policies, but it is the lender's choice, as it is their money to loan.
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This is a catch 22, but the reality is that many, many borrowers will go back to the credit cards and incur the debt again. Customers cut the cards u, but later request replacements and make charges. Then the borrower has even more debt and more of a problem. Debt consolidations are difficult to get for this reason. You can try another lender, as different banks have different policies, but it is the lender's choice, as it is their money to loan.
