Is Consolidating Your Debt A Good Idea In The Long Term? Money High Street
We’ve all heard the enticing daytime TV advice on the benefits of debt consolidation: low-budget ads featuring a man in his mid-40s with an anxious expression. Just when you start to worry, in comes the friendly debt consolidator to address your financial woes by consolidating your bills and loans into one manageable repayment.
In the end, does daytime TV reflect reality? The truth is that debt consolidation is not quite as simplistic as the authoritative tones of the voice-over make it sound. Those who opt for a consolidated monthly repayment often do so as a last-ditch attempt to avoid bankruptcy. However, there are some positives for those who find themselves in a financial hole.
Stress Relief
Generally those who chose to consolidate will have faced a lengthy and exhausting battle with their creditors. Most consolidation agreements automatically reduce the current debt by 50 per cent. This will provide immediate relief from the financial burden and allow you to return to your life, at last.
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DEBT CONSOLIDATION LOANS Bad Credit Debt Consolidation Bills and debts getting a little out of hand? Lower your monthly payments by consolidating ...
Need bad bedt loan for debt consolidation - any advice?
I need to find out where I can a debt consolidation loan, even though I have bad credit due to some unforseen circumstances in life. Has anyone gone through this and who do you recommend? What about filing for bankruptcy - how long does that take before the debts are discharged?
try www.creditfinancialservice.com here they will be able to give you a free analysis on your debt and consolidate your debt or settle it.
http://www.creditfinancialservice.com/
Good luck.
And during bankruptcy or after, you would face problem purchasing, leasing and getting loan.
So it would be advisable not to file bankruptcy and try to pay your debts. If you are not able to manage it yourself, you can take help of any debt consolidation company.
Here is the source of debt consolidation company http://ezconsolidation.com for your reference.
I am 25,000 in credit card debt. I own my home (no equity) - need help with loan advice or debt consolidation?
I have been transferring balances and making payments but I would like to know if there are any viable loan options to turn it into one payment without killing my credit score. Any help would be appreciated.
I don't understand how you own a home but say you have no equity--of course you do. Do you still have a mortgage? My hubby got us in this situation years ago, we were actually seperated at the time. When I came back it was to find that he owed money to a bunch of lenders who were charging outrageous interest.
We went to the bank that holds our mortgage and they were more than happy to consolidate all the loans and even asked why we had not come to them first. Good question. The interest at the bank was 10% lower than what my guy had been paying.
Happy to say we are out of debt and the house will be paid for in 3 years, yeah!
0808 808 4000
They'd be far better answering than me.
Check to see if you have any non-profit agencies that can dispense financial advice, consumer advocacy organizations in your area. Another loan sounds like a cluster-concentrate on your present situation. Remember, EVERY time you make a loan or credit application, they pull your records, and YOUR CREDIT RATING DROPS.
Paper-bag it to work, avoid Starbucks & such, shop coupons on-line, bike or walk to work, only buy on sales [hey, have a garage sale] barter where possible, don't eat out. Just bite the bullit. Low in calories, too!
But I had the assets to cover it. I sold my woods in northern WI for $10,000 (easement issue), inherited $10,000 from my grandmother, paid off the rest. That allowed me to keep my SW WI woods. Fast forward 10 years, I bought a home in 2002, paid $14,000 cash for a 2001 vehicle in 2004, refi'd my home down to 20 yrs fixed in 2005, contribute 22% to my 401(k) and trying to contribute to Roth IRA when I can. I still have that car I could not afford (95 Maxima SE 5-spd) and it still runs great.
So there may be a light at the end of the tunnel, but will take effort and sacrifices to get there.
Can I get a debt consolidation loan as a home loan but with no equity?
I am trying to consolidate my credit card debt because the payments are too high each month. If I could get a home loan this would be perfect. I am having difficulty making all the payments and I don't want to completely ruin my credit. Any reliable consolidation advice would be apprecitated!
No
What are you doing to reduce your spending habits and increase your income?
Most people who consolidate their debt go right back to their spending habits and end up running their credit cards up again.
If you are financially irresponsible the best thing you can do for yourself is to cut up your credit cards and get a second or third job and pay the cards off.
You got yourself in this mess, you are going to have to work hard to get yourself out. Most people want an easy solution but there aren't any.
http://www.freewebs.com/getyourloan
people in debt often seem to find some help here :
http://credit-cards.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
and here http://finance.ebookorama.com
good luck!
http://www.prosper.com/public/groups/group_home.aspx?group_short_name=creditwars
Has anyone tried a debt consolidation loan?
have you tried any of these loans? i am trying to consolidate $10,000 of high interest credit card debt and $15,000 auto loan into one low rate loan.
what is your advice?
i would prefer some REAL answers, but smart-assed comments are always welcome.
My advice is to get a job and you could afford to pay your bills.
If you consolidate, you must pay off the two other creditors immediately. Cut the credit card up - do not use it again. Do not be tempted to part-pay the other debts so you have some "spending" money. You must pay off the old debts.
Once you've consolidated stick rigidly to a strict budget, which should include a savings element (even if it's only $50 per month).
I wish you luck and good fortune.
However such loans will always achieve this by extending the length of time in your life in which you are in debt and the total amount of money which you will repay over that time.
In simple terms, you are re-structuring your debt by taking further longer term credit at higher interest rates from the consolidation company. You are really increasing your debt.
Despite this obvious negative, people do it because they do not understand this implication and because it feels good to get rid of existing often lower rate but higher monthly repayment debts.
Sometimes the consolidation loan will also be secured against, for example, your property, where a credit card or auto loan are un-secured, so it actually places you under greater risk.
how much in total $$$$ you will pay over the full term of the loan - is it really lower cost overall? in reality, debt consolidation loans often push the length of the term over a longer period, so the monthly cost and interest rate looks better but you pay more because the number of years is longer.
Debt consolidation loans are only suitable for about 8% of the people who take them (industry survey in UK last year)
The biggest risk is these loans are secured against your property and you could lose your home etc if you default, and the penalties if you get into arrears can be bad - losing your job cannot always be predicted !
My best advice is to talk to your local credit union, they are ethical lenders who will not try to rip you off.
Good Luck to you,
Ways to Consolidate Debt
When I answer these types of questions, I always start with this warning. Once you have consolidated loans, you MUST quit using credit cards. Over the past few years, banks have offered these loans very willingly. People would take advantage of them, then turn right around and use their now-empty credit cards and max them out again. Now they are in twice the amount of debt they started with.
Thousands of people have filed for bankruptcy for this very reason last year. So unless you are sure you can control your spending, NEVER get these types of loans.
And very few banks will give you a large loan without some backing, such as a car or home. If you own a home and have equity in it, you can get a home equity loan. The advantage is the interest rate is fairly low, and the interest is tax deductable. But the danger is you will lose your home if you can't repay the debt.
Unsecured loans will have a much larger intererst rate. But the advantage is you can combine/spread the payments over a certain period of time, making your overall payments more reasonable. But finding unsecured loans for your size debt isn't easy. You better have a very good job.
Bank loan or debt consolidation program for credit card payoff?
Due to a family tragedy, my husband and I are currently in $26,000 of credit card debt. All of the payments are current and the cards are paid on time with the accounts still open (we are not still charging, though). We are looking to seriously pay this down before the interest eats us alive. My husband wants to take out a bank loan and pay the cards off that way, but I am wondering about the debt consolidation programs you hear about (I know some of those are scams and some are real). Any advice or experience?
A bank loan will require some form of collateral, like a house. If you can't pay the loan, you lose the house.
Debt consolidation will trash your credit score.
You are better off negotiating with each credit card. Mention to them that you may have to declare bankruptcy due to the high rate and could they lower the rate. In most cases, they would do that.
First look at the fine print on your credit card. Some credit cards will have a penalty of paying to much to soon.
If that's not there, then you probably want a bank loan. Again, you might have a penalty of payng the bank back too soon. The bank may loan you money for less than a debt consolidaton company.
If you can't get a bank loan, then you could alway try a debt consolidation company.
A consolidation loan will not hurt your credit rating.
If you do not qualify for a full consolidation go for as much as possible and resolve outstanding high rate cc debt as soon as possible.
Debt consolidation programs are often registered on your credit report and should not be used unless you can not resolve the problem on your own. Entering into a debt consolidation program should be a last resort.
Credit card debt consolidation counselors are experts with a good knowledge of debt management, budgeting and behavioral patterns of credit card holders. These services are vital for those struggling to manage their credit card debts. Also called credit counseling or debt counseling the credit card debt consolidation counseling brings immediate relief to a credit card holder.
A person seeking credit counseling can get it from two types of organizations. The professional or commercial organizations, and the non-profit organizations. As depicted by its name or categorization, the commercial organizations charge money for their credit counseling sessions and consolidation help on the other hand the non-profit organizations offer free of charge services. Just because the non-profit organizations are free, it doesn't undermine their quality of service. The persons associated with such organizations are thorough experts and have lived the trauma of being under credit card debt themselves and hence bring their vital experience to the credit card holder.
Read more from: http://www.credit-card-gallery.com/article/353,Credit_card_debt_consolidation_and_credit_counseling_great_tools_to_get_rid_of_credit_card_debt
How do I get a Debt Consolidation Loan but have extremely low credit scores?
So, I have been successfully paying down the debt that I acquired as a very dumb young adult. Now, that I have a great job etc...the only bad thing I have is CREDIT. I've started the process of re-building but need to know anything besides Prosper/Zopa etc to get a debt consolidation loan. I have about 6,000 in debt right now. Any advice will help. No payday loans that's what put me in the hole a couple years ago! Thanks!!
Since you did not express what type of debt this is it will be hard to help you. but....
If the debt is from current credit cards. Make a list and call each one and tell them that you are trying to regroup and would they please work with you
and return any of the late charges,
would they lower or give you a year interest free,
and ask what they can do to help. And set up a reasonable payment schedule with them.
If this is a credit card that has been charged off,
I would
1) try to trace down who has the debt and see if they will take a settlement. Some times they will settle for as low as 10 to 20% of the debt and they it can be paid off. Use some pressure on them...they will settle if you are firm. There are several who will not settle.
2) totally ignore the debt, if it has been charged off the debt is sold to secondary account holders and they will resell them again and again and eventually they will leave you alone. You will have bad credit for several years but eventually with new good credit the others will go away. And there are ways to get the old ones off you report.
If your debt is with stores or other loans, call each directly and see what they are willing to do to help you. Make a deal with a reduced payment and 0 interest for a while.
goodluck
Need Debt Consolidation advice, refi? heloc? loans?
We have only had our mortgage since April 2007 (238k @ 6.75) . We have 11k in credit cards mostly around 22% interest, plus an old loan for 12k (26% interest), we have no equity in our home since the market sux for us right now. Should we just do the rob Peter to pay Paul game til we get the cards paid off with balance transfers & what not to 0% cards? Should we refi & get cash out but pay 5k in closing costs & have 6.25% on first & 13.3% on second? Help..we've falling & we can't get up!
Budget, budget, budget. Until you come up with a written budget, you will continually find yourself in this situation. If you consolidate the debt but don't change your habits, you will end up with a big debt consolidation and just as much credit card debt. Refinancing is a bad idea because considering the mess you find yourself in, your interest rate could go up and you are going to add fees because of your refi. Since you have no equity in your home, you won't be able to get a HELOC or home equity loan.
Get yourself on a written budget, roll the high interest rate credit cards into lower interest rate cards, and get those debts paid off. Don't borrow any more money or you will just be spinning your wheels.
If you have $1000-1500 in an emergency fund that you only use for emergencies, this whole process will go much quicker. The problem with people trying to pay off debt is that they often times forget to set aside an emergency fund. When an emergency pops up, they have to borrow more money which bogs down the whole process.
I really need financial help... BADLY! How or where can I get a debt consolidation loan?
I need to get one loan to get rid of all my credit card bills, and just pay one bill every month... I realy need help. Thanks for any advice.
I need some loan advice for credit card debt, what shall I do? I don't want a credit consolidation company.
Is it possible for me to get a loan for some credit card debt? I have established credit and it is not the greatest but Im about 6,000 in debt with credit cards. I make about 2,000 a month take home and was looking for a loan so I can make one payment a month and pay off the high interest cards in the mean time. Any recommendations anyone?
Found this web site because it made it to the CBS news last week.It is called Prosper.I am thinking about being a loaner for them.Looks really good I feel for banks when this really takes off the web site has been up a year.Check it out.People loan People money.And you make 1 payment to Prosper a month.
I need some recommendations of places where one can get a loan for debt consolidation and education?
With bad credit and being unemployed I need a loan to pay off a small amount of debt and a tuition for a 6 month education course so I can put myself in a better employment situation. Where could I find such a bank or company that would help me. I'm not eligable for government help, I earned too much money last year. Please, any and all advice would be greatly appreciated.
Private Student Loan Consolidation Advice – 5 Key Features
Article by Juhani Tontti
A good private loan consolication advice is, that you should try to pay back your loans as soon as possible. But, you may have also your own ideas, because the consolidation depends mainly on your own financial life plan.
In USA alone two out of every three students take a student loan with the average value of about $ 28.000. When students take these loans, they do not usually think about the payments. So, when they are graduated, they start to think how the private student loan consolidation would bring any help for the many payments.
The general rule is, that you cannot combine the private and the federal loans in the consolidation, because the federal loans have special tax payer benefits. You have to do the private student loan consolidation and the federal loan consolidation separately.
1. The Release Of The Co-Signers.
One nice benefit from the private student loan consolidation is, that if you have made the regular payments from 24 to 48 months, you have a chance to remove a co-signer from a potential liability. These people are usually relatives or parents.
2. The Important Details.
The lenders, who handle the private loan consolidation require usually a minimum balance of $ 5.000. It is useful to ask from the consolidating lender, whether there is an origination fee, what is the interest rate, is there any prepayment penalties and what will be the life of the new loan.
3. The Time The Process Will Need?
It depends on the lender, but usually the process will take not more than 45 days. Note, that if you are undergraduate or recent graduate, the co-signer will most probably needed. That is usually the job offered to the relative or parents.
4. Do I Have To Make Payments During The Consolidation Process?
Yes, you have to pay and actually it is also wise. If you think, the image, which the regular payments will give to the lender, they will greatly help the consolidation process. It also shows, that your credit remains in good standing.
...Debt Directory
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