Advantages & disadvantages of debt consolidation Think Money
The advantages of consolidating debts into one payment can be many. However, there are potential disadvantages as well. You must decide, before you consolidate your debts, whether it would make your finances easier to manage and whether it's suitable for you.
If you believe you'll be able to keep making repayments for the full term of the loan and you would like the simplicity of one affordable monthly payment, it could be for you.
What are the advantages?There are many advantages to a debt consolidation loan :
Depending on your credit rating , you may be able to get a loan with a lower APR. That can reduce the amount you repay overall. You could also lower your monthly repayments if you arrange to pay back the loan over a longer period of time. It's simpler to budget for your monthly expenses if you're only making one debt payment every month instead of many. You'll only be dealing with one creditor, which could be less stressful than dealingWhat Everyone Should Know About Debt Consolidation For Bad Credit - Part 1
beatbankruptcyvideo.com - Click The Link To Watch Part 2 On What Everyone Should Know About Debt Consolidation For Bad Credit. When you are in ...
question about bankruptcy and debt consolidation?
Ok I am going through a seperation with my wife
and we bought a vehicle together,but its under my name
and i can't afford it plus all my other bills put together by myself
I am close to 30,000 in debt
I would like to do a consolidation before bankruptcy
but does anyone have an idea
how low my debt consolidation payments would be?
or should i file bankruptcy?
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follow it carefully.
Go check out Dave's website as well. Yahoo is blocking his site again, so take out the spaces in the following:
www. Dave ramsey. com
Your monthly payment for 10 years
for an interest rate of 12.00%
on a loan amount of $ 30000.00 will be:
$ 430.41 per month
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://d6b0.easyurl.net
debt consolidation loans- what can I do about all my debt?
I have maxed out credit cards and they raised my apr due to a mistake in my payment and it was late, usually i'm on time or early with my payments and always pay the minimal. I'm trying so hard to get out of debt but with my apr raised, i feel like i'm drowning in debt. I have read some info on debt consolidation loans vs. other methods, which is best and what can i do? i probably have really bad credit right now due to the max'd out limits and the "penalty pricing" increase in my apr. I would like to find a way to consolidate debt to lower the rate and possibly lower the payments but i don't want to get into a situation that will end up leaving more of a scar on my credit report. Can anyone help me out? where do i go from here?
Hi,
First, the only things that effect your credit with regard to your CC's is current balance vs. Limit and payment history-- they have no idea if you are under a 'penalty APR'.
That said, a loan is not always the way to go-- First, its important to have 'revolving debt' and not just installment debt. Second, HISTORY is important, so you dont always want to close accounts if you've had them for more than a year or two-- longevity is important.
Have you called your companies and tried to negotiate? MOst of them work with you! All you have to do is say that you're trying hard to get your CC's under control and you can make X amount each month, what can they do to help you? I've had late fees reversed, APR's cut in half, etc, etc. And if you dont have luck, try again in a day or two-- I noticed some customer service reps try hard to help you and some have "tough luck" mentalities, even tho they both work for hte same company.
Try your best to arrange this first before doing the loan thing. ANd if you DO do the loan thing, consider paying the cards off and slicing them but leaving the accoutns open to help your Credit score-- but only do this if you can resist temptation!
But above all, don't let yourself get trapped into any of the debt elimination or debt consolidation scams
Also do not pay anyone to fix you credit for you. It is very easy to do that for yourself and paying to fix your credit will only divert money you should be using to pay down your current debts. If you are going to attempt to fix your credit do it yourself. You will do a better job of it all by yourself.
If you send disputes to the credit bureaus then do not use any of the letters you can find all over the internet. The credit bureaus have seen them all and they will only hurt your efforts.
Just make up your own. It's not hard to do but don't put in any of the legal jargon to be found on the internet. That's not necessary and will only hurt you. Plain and simple is the best.
Good luck !
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
if you get any luck please don't forget about me lol, hope it helped you!
Ways to Consolidate Debt
http://www.debt-explained.com/category/Ways-to-Consolidate-Debt.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.htm
Im thinking about filing chapter 13 and doing debt consolidation, any thoughts or experiences?
I pay all my bills on time (for the most part) but it's nothing but the minium, I was thinking about doing chapter 13 debt consolidation, is this wise?
what about just trying the debt consolidation w/o chapter 13? it will significantly reduce your interest rates, and it only effects your credit a little bit, not as much as chapter 13.
If you can just find a way to commit to paying an extra $100 per month (maybe a 2nd job?), I think that will be much better in the long run.
Bankruptcy is much more difficult now and will damage your credit score for years to come. Avoid at all cost.
Does anyone have reliable information about debt consolidation?
I was told that consolidation was better than filing bankruptcy. Anyone who knows of a good company that doesn't cost a lot too will help. I don't know much about this and any information will help. Thank you!
I was told that consolidation was better than filing bankruptcy. Anyone who knows of a good company that doesn't cost a lot too will help. I don't know much about this and any information will help. Thank you!
In RE:
Sarah H
Find a credit counseling agency. All of your debt, if you consolidate will be stretched out for more years and will in the long run cost you more. You need some one to teach you how to manage your debt and credit.
My RE:
Do you know of anyone who could teach me about managing my debt and credit?
Debt Consolidation is not necessary right for everyone and you have to know more about it and get educated yourself so you won't get into deeper water.
My resource box include two articles. Hope it helps, and good luck!
By: Jason Niesen
This is a good resourse site with companies that you can work with listed there too.
http://www.quazen.com/Home/Personal-Finance/Managing-your-Debts,-a-common-sense-approach.525
916-606-1090
keyon
What is the best procedure to follow about debt consolidation?
I have a loan and 3 credit cards almost fully used, I just want to know how I can consolidate my 4 payments with one effective payment
Start by making a list of monthly expenses - ones that you can't avoid like food and housing (fixed expenses), and also ones that you can control like entertainment and technology purchases (discretionary spending). Take your monthly income and subtract from that your fixed expenses. This is the amount that you have left to save and use for paying off your debts. Put a freeze on most discretionary spending for now. Get an American Express Green card, which you have to pay off monthly, and get rid of the old credit cards.
If you own a home, consider refinancing your debt into a new mortgage or home equity loan so that the interest is tax deductible. If you don't own a home, then pay off in either order: Either pay off the highest interest cards first, or pay off the smallest card balance first. The second option can be psychologically rewarding since you can see the progress you are making in completely wiping out each card balance.
It takes discipline, but you can do it!
If you do what you suggest above with consolidating to 1 payment you may get the sense that you're almost out of debt and start running up the cards again.
Does anyone know who I should talk to about debt consolidation?
I guess thats what it would be called. You know those commericals you see where they can put all your bills together for one monthly payment... I started to look up financial consultants, but I dont know what I'm looking for. Does anyone know? Please help!!!
Contact the Consumer Credit Counseling Service. Their main website is http://www.cccsintl.org/.
They are a non-profit organization, so they are more likely to have your best interests in mind (instead of theirs).
Many of the debt consolidation companies you see in commercials charge outrageous fees, and they may not even help you get out of debt.
A good credit counseling service can help you decide what the best course of action is for you, they can provide budgeting and other educational services, and they should be able to work directly with your creditors to get better rates for you.
I hope this helps. Good luck!
Where is the best place to get a Debt Consolidation loan? I need about $30,000 for less than 10%?
I am a homeowner but I don't want to refinance and pull out my equity. I'm just looking to get a lower rate than my current cards and pay these things off for good within about 5 years.
Home equities are really the best option since you have the option to term them out for X amount of years and have the same payment each month. However, you're local bank/credit union may have some additional options for you. At my bank, we offer a signature line of credit. It's basically like a credit card, but the rate is much lower. The rates vary depending on credit and the amount borrowed.
Anyone know anything about debt consolidation?
If i call one of those debt places to get my credit card bills paid off, does that go on your credit report or make it hard to get new credit cards?
Online debt consolidation comes in many forms, so it is important that each consumer reflects on what their needs and concerns and financial situation is before signing up for an online debt consolidation program. The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.
Since there are a variety of online debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you.
Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts.
Debt Settlement
Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money.
Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: http://www.bills.com/mortage/refinance
Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.
Bills.com makes it easy for you to apply, by following this link: https://www.bills.com/debthelp/debt
does anyone know about any good debt consolidation companys?
got about $4g in bills!!! I just got out on my own and have a family. Hard times.
I need a clarification - do you have 4g in BILLS EVERY MONTH or 4g in TOTAL DEBT?
I wrote the answer below assuming it was 4g TOTAL DEBT, but please clarify with an update to your question!
Most of the companies are looking out for themselves, not for you. And don't let any of the spammers that shill for consolidation companies in Yahoo Answers tell you otherwise (one or two will show up in this question).
My recommendation, for a first step, is to call each of your creditors and just tell them you've seen a lot of competitive interest rates out there, is it possible they could reduce yours.
Don't apply for more credit, but if you have a card with lower interest and some availability, and IF Balance Transfers are free, move some money off a high interest card.
Unfortunately, getting a loan for consolidation is pretty tough right now, but believe me when I say friend, 4g is not a big deal, a lot of us have much, much more. You did a great job realizing it was a problem before it became too big of a deal.
how to go about charging a company for harrassing phone calls - debt consolidation-?
i never asked for their help. they called. i said no thank you. i called the number given to me if i want to be put on a no call list. they called back 8 times after, yesterday. they have done this consistantly (3 times a week or so) for 2 months.
what recourse do i have?
You should contact the Office of the Attorney General of your state. They are the ones who would investigate and then prosecute the offenders. Many of them have task forces set up for just this problem.
DebtDIY.com Unveils Debt Consolidation Information Center
DebtDIY.com Unveils Debt Consolidation Information Center
Rancho Cucamonga, CA (PRWEB) January 16, 2006
In order to help consumers locate important information about Debt Consolidation, this month, DebtDIY.com has unveiled the Debt Consolidation Information Center. This new addition to the DebtDIY.com web site includes hundreds of articles which can help consumers get answers to important questions that they may have about Debt Consolidation.
The Debt Consolidation Information Center also includes hundreds of links to additional resources online for people in need of assistance in making informed decisions. Some of these resources include information about Debt Reduction, Debt Consolidation, Student Loans, Credit Card Debt, Mortgage Loans and much more.
The addition of the Debt Consolidation Information Center is another step towards DebtDIY.com’s ongoing mission of providing valuable information to help educate consumers. For more information, please visit us at http://Loans.DebtDIY.com or at http://www.DebtDIY.com.
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about debt consolidation - News
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Dave says: Credit consolidation services ruin credit - Norristown Times Herald Dave says: Credit consolidation services ruin credit I think we should live on a really tight budget and save like crazy, but my husband is really fired up about using a debt consolidation service. |
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The difference between debt consolidation and forgiveness - ABC15.com (KNXV-TV) The difference between debt consolidation and forgiveness Bankrate.com said beware of high fees associated with some debt consolidation companies. Be sure to check any consolidator’s record at the Better Business |
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Consolidation loan Information - Meadow Free Press Consolidation loan Information You can get a debt consolidation loan irrespective of the type of outstanding loans - secured or unsecured. When you take a debt consolidation loan, DEBT CONSOLIDATION LOANS: PROVIDES YOU ALL INFORMATION ABOUT YOUR Is Debt Consolidation The Magic Bullet? Science news straight from the source |
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Next budget key to credit rating - New Zealand Herald Next budget key to credit rating Though such deficits were not uncommon, market confidence might wane until policymakers articulated a plan for medium-term fiscal consolidation, Curry said. Canada’s AAA Credit Rating, Outlook Affirmed by S&P S&P has eye on NZ debt * S&P cuts New Zealand foreign currency outlook to negative - |
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Claim: Taiwan's DRAM industry needs cash now, not consolidation resistance and difficulties as there are fundamental aspects of business which need to be addressed, such as short-term and long-term debt obligations. ProMOS Told to Resubmit |
