Do I Have a Debt Problem?
“Do you ever feel like you're drowning in debt? Like every time you shore up one side of your debt the other side bursts thru with more expenses and bills? I did!! Due to some unforeseen circumstances, I was left supporting my family of five on part-time hours. There was no way to plan for what happened and we ate right through our emergency funds. I had to resort to using the credit cards to supplement and the bills began to get overwhelming! Then LendingClub gave me a helping hand and assisted me in receiving a debt consolidation loan with a comparable APR and terms that were suitable for my situation. My multiple payments are now one monthly payment and I am now able to begin a three-year plan to become debt free! I feel like I can breathe again! Thank you!” —Dori, a member from Minnesota
A lot of people see all debt as bad. We know that’s not true. Using a credit card or having a car loan does not mean that you have a “debt problem.” In fact, having some debt and demonstrating that you can make regular payments on it is an important way to prove your credit-worthiness! That can open doors for you to create the life you want to live.
But if you think you might be off track, consider if any of these apply to you:
- Losing sleep worrying about debt
- Spending more than your income allows
- Difficulty paying bills on time
- Paying only the minimum amount due each month on outstanding credit card debt
- Taking out new credit cards when your other cards are “maxed out”
- Taking out high-interest, short-term loans
- Taking cash advances on your credit cards
- Juggling which expenses to pay each month and which not to pay
- Being denied loans
- Calls from collections agencies
- High debt-to-income-ratio
- Not having a budget and not knowing your monthly expenses compared to income
- Feelings of hopelessness that you’ll never get out of debt
- Feelings of shame about your debt
This list can look intimidating, and just because you may see yourself in some of the above items doesn’t mean your situation is dire. Sometimes we find ourselves in a short-term situation where money is tight or expenses just piled up. Sometimes you did the right thing for a family member and it was a tough thing for your finances. But this doesn’t necessarily imply a long-term problem. And the good news is, regardless of your situation, you may find relief with a loan through LendingClub. Whether it’s with budgeting monthly expenses better or just sleeping a little easier because you’re on a clear path forward. And you’re definitely not alone.
LendingClub can help
If you think you might have a debt problem, it’s not the end of the world. You’re not alone. A community is here to help you! In fact, many of our customers have been in your shoes. They have taken control of their debt by taking a loan through LendingClub at a lower, fixed rate to consolidate their credit cards and other loans. You can too. This helps you:
- create a clear plan to becoming debt free
- manage your monthly cash flow while paying down debt
- keep your interest rate low so you’re not overpaying to borrow money when you do
- repair your credit score—many customers paying off credit cards and consolidating debt see their credit scores go up after just a few months.*
If you get a 3-year or 5-year loan through LendingClub, you can actually mark your calendar for the day you can be paid off. That’s something to celebrate. So is taking control of your finances. We can help.
*On average, borrowers who paid their debt down and maintained low balances saw a credit score increase, however, other factors including increasing debt load could result in your credit score declining.