Q. Dear Moe; I’m writing you because I am in desperate need of help.  In trying to save my underwater house for the past year, my wife and I have depleted all of our savings and retirement money.  We have to save our home. We have been searching everywhere to find a way to borrow some money.  Unfortunately, our credit is wrecked. 

Do you know where I can get a quick personal loan with bad credit or do you have some money I can borrow Moe? 

A.  I’m sorry to hear about your unfortunate set of circumstances.  Over the last three years, I’ve met many family’s going through this similar type of hardship.  There’s almost nothing worse in life, than not having enough money to pay the bills or the risk of losing your home.  It is one of the top stresses that any human can go through.  Please realize that you’re not alone in this crisis and there are millions of Americans suffering just like you.

To answer your question if I will lend you money, I’m not that rich and I do not like to lend things out.  Especially, things that I don’t have a lot of and one thing I dont have much of is money.  I wish I was a billionaire and I can help all you homeowners and struggling Americans who need help right now.  But I’m not, and all I can simply do is offer advice and a helping hand.

It appears that you are in a mortgage that may be unsustainable.  Unfortunately, there’s no way that you’re gonna be able to get a home loan with bad credit and being underwater.  The only type of financing that you’ll be able to obtain, would be some type of payday or pawn shop loan.  These are also called personal loans.  Some people would call these loan sharks.

You can find these offers all over the Internet and also advertising on TV.  Expect to pay a very high interest rate with very tough and short terms.  The rates I believe, can go up to as high as 100% plus.  If you thought subprime mortgages were bad, these loans take the toxic cake.

Most borrowers who sign these types of contracts, most always default or they have to go get another payday loan to keep the vicious cycle going.  When in reality, they most likely have to buck down and make some hard decisions with their finances.  That can be any number of things.  So, if you sign one of these types of contracts, you will also most likely meet the fate of others that have followed before you. 

Personally, I recommend that you don’t get any type of loan.  But to do everything in your power to make it on your paycheck and cash on hand.  This will be tough and you may have to get rid of some things.  Has Kenny Rogers once said, “you have to know when the hold’em and when to fold’em.”

Here are my recommendations;

  • Downsizing on your home and possibly renting
  •  Downsizing on your car
  •  Take the bus or train
  •  Get help with food and your utilities at a local charity
  •  Cut out all your debt
  •  Possibly move to an area of the country where it is cheaper to live and you can find a job

The answer to your current financial problems is not always another loan.  You have to really think this through and do the Ben Franklin.  You have to write down the pros and the cons, to see if it is really worth it it get in more debt.  You also really need to have a plan to get your finances in control, to the point where you don’t ever need this type of  terrible financing.

I know this is easier said than done.  But it needs to be done and you need to get to work.

I wish you luck and if you have any more questions, please feel free to join our forum.  There are over 30,000 Americans in there right now sharing their hard luck debt and loan stories.  We would love to have you join our community.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.