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 dealing9. Debt Consolidation - savingandinvesting.com
Some of the principles behind consolidating your debt explained.
After a debt consol. loan, is it better to cancel c cards or leave them open, how does it affect credit score?
It will help your credit to keep them open because now that they are paid off you have increase your amount of available credit which will increase your credit score, but if you will have trouble NOT using the cards then it may be better for you to close them, after I consolidated most of my credit cards I just cut them up so that I can use them anymore and kept the one with the lowest limit to keep myself from getting in trouble with them again, so I would say that if you can keep from using them again you best bet it to keep them open for about 12 months or so, if they have annual fees and things of this nature then make sure you cancell them before you get charged again. Best of Luck I hope that this has helped you if you would like to learn more about credit than please visit my profile and see my blog lots of great information about credit!
You have to weigh this against two factors:
(1) the temptation to use the still open accounts and
(2) the additional credit lines that the bureaus will see.
As others have said, perhaps best to cut up the cards you don't want to use.
I have I guess very bad credit and I am trying to get my credit better w/o debt consol. I am hoping to find a?
credit card or personal loan. However, I always seem to get turned down even from credit cards that only give 300 credit limit. Mainly on my credit report its medical bills and only a couple fininicial things nothing much. My mom has very bad credit and shes getting approved for all these 300 credit limit credit cards. So my mom said she would co-sign for me however it seems silly to me to have someone with bad credit co-sign or is there any cards that she could get a extra card in my name like the 300.00 credit limit because I am trying to rebuild my credit?? I am a bit confused however, I understand I have to repair my credit and start low. I would just like to know if any credit card company besides catalog scammer credit cards and cards you have to put a deposit on I all ready know about these cards. Any info you have is greatly appreciated. Thank You for all your time reading this and any efforts:)
If you're getting turned down for even low limit credit cards, you may need to look at your credit report and figure out what you can do to fix the bad debt you already have. There is no point in taking out a new credit card, running up a big debt, and adding another bad debt to your report. Medical bills or credit cards are equally your responsibility to pay off, and that's where I'd start if I were you.
they have a lot of great articles there. I have also e-mailed them some questions and they got back to me right away. They're personable, it isnt a automaticaly generated e-mail or something.
"There is no point in taking out a new credit card, running up a big debt, and adding another bad debt to your report."
actually, there are things you can do like getting more credit cards and not using them to make your available credit higher.
where can I get a quick loan for 45,000 with a low interest rate that is fixed? I do not need debt consol.?
The mafia.
http://www.prosper.com/join/Lzc5wh
I got my loan from Standard Assurance Loan Company Int just three day ago, you can contact them via this email <standard.assurance@yahoo.com> If they have funds available i know they will definitely loaned you except there is no funds available.
Sincerely
Advise on early w/drawl of IRA funds ( 1 time penalty)to pay off high int. debt. No mtg to do consol. loan.?
I'm 55, on disability, we rent. this would deplete my IRA accts (various mutual funds & some lame stocks) to only neg yeilds at this time. should we bite the bullet (ie ints as high as 30%) and pay-off as much ea/mo as we can, OR pay the one time penalty (I don't know how much that would be) and pay off all debts above a certain % rate, OR ??? Thanks, in advance, for any ideas, opinions, help---consolations ;D
An early withdrawal of an IRA will mean severe tax consequences. You may can borrow other money from somewhere to pay your bills but there is no such thing as a Retirement Loan. If you withdraw it before age 59 1/2, you will have to claim it as ordinary income plus there is a 10% penalty tacked on for the withdrawing of it that the custodian (fund co., broker, etc.) must collect for the gov't. For your future's sake, don't do it. Good Luck!
I have good credit but a lot of debt, so I get denied for loans. How do I get approved for a consol. loan?
I have a lot of debt (credit cards, student loan, mortgage) but a decent credit score (about 690). I have never missed a payment but i cannot get approved for a consolidation loan because I have "excessive financial obligations". We haven't owned our house for very long so there is not much equity in it yet. We are paying out the nose on our cards and I just want to lower the payments so we are not living paycheck to paycheck. Does anyone have a suggestion?
if this under the business name try
http://www.orbitbusinessloans.com/
http://orbitmerchantsolutions.com/
It merely transfers debt from one guy to another.
Have you tried budgeting your money?
Take out a piece of paper, and write down everything that you plan to spend money on next month, and how much.
There are things you can cut out of the budget, if you're serious about not wanting to live paycheck-to-paycheck.
For the cost of a single meal at a casual restaurant ($12-$15), you can buy enough beans and rice to feed yourself for a week.
A bad credit history is like having contracted an infectious disease. At least this is what most lenders perceive. Any requests for personal loans by people with a bad credit history are generally declined.
But there is a way now, you can apply for Bad Credit Loan.
Here are some best lendrers in this Category.
http://badcreditsloans.blogspot.com/
For the credit cards, however, a consolidation loan could probably bring down your interest rate and save you quite a bit of money.
I'd look into http://www.prosper.com (For the record, I'm a lender there). It's like eBay for loans. You state the highest interest rate you're willing to accept, and lenders bid on your loans. The lender (or lenders) bidding the lowest interest rate win. If you get enough bidders, your loan is fully funded and you have 3 years to pay it off.
The catch? Stop carrying balances on your credit cards! Use a Prosper loan to get yourself out of trouble - don't use it to just dig a deeper hole for yourself! If you use Prosper, send me an email and I'll consider bidding on your listing.
Good luck!
Regarding unsec. c card debt, can my wages be garnished in AZ / NM (ex filed bnkrptcy, collectors now call me)
This is a question related to last week's question kindly answered by helpful person..."is not paying unsecured credit card debt an alternative to bankruptcy [?] ". The answer included info that my wages could not be garnished in TX. I now need to know about NM & AZ.
Considering I can't do debt consol and would very much like to avoid bankruptcy....I am trying to put my life back together after ex husband in TX surprised me by divorcing me after 14 yrs. and then filed bankruptcy himself instead of filing as a couple (which he had told me he would do-as a couple) and in doing so dumped debts on me. Collectors who can't collect from him are now calling me. THANKS GREATLY FOR YOUR HELP.
I know you can in Arizona and I think this web site shows it happens in New Mexico. Try to work out some options with creditors anyway because it takes several steps for them to do garnishment. If you can talk to them, they may not want to have to go through the steps, either.
we are in debt....help....?
my husband and I are in debt over our heads and we even tried a debt consol. program.....any advise??
1) Create a budget. This will be the first step towards getting back on your feet.
http://financialbasics.blogspot.com/2006/11/creating-budget.html
2) Understand your credit situation. Credit is a numbers game. The more you understand it, the better you will be at managing it.
http://financialbasics.blogspot.com/2006/11/credit-reports-and-credit-reporting.html
3) Adopt a more frugal lifestyle. Spend less money. Kick those costly addictions (the budget will come in handy at this point)
bankruptcy 13 or debt consolodation???
hello my husband and i need to do something about our bills we were young and reckless and yes i know it was stupid to get our selves into the situation that we did....we understand our mistake but now need some help getting out of what we have gotten into. most all of our debt is credit cards and personal loans. i would say we have about 30,000 in debt. now i know from talking with lawyers that we do not qualify for chapt 7 because my husband and i together make to much money (barley) anyways my question is we want to know if we should go with chap 13 or should we go with debt consol. also was wondering how do you pay the chap 13 and the debt consol do they take it out of your check every week or do you get to pay them. my fear with this is they will take all our money for the bills leaving us with nothing for savings, what if you car blows up or something or and emergency occures i dont want to be left with no money at all. please anyone with answers?
Hi,
I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate. Icame across this company on NBC News Special Edition.Check it out here:
http://click.linksynergy.decenturl.com/credit-solutions-credit-consolidatio
Select The Debt Consolidation Company Wisely
In case you have recently accumulated too much debt and you simply can’t face anymore the financial burden, it is definitely the time to approach a debt consolidation counselor. Make sure you select the Debt Consolidation company wisely! All the debtors who want to make debt consolidation successful have to be well informed. You simply can’t work with the first debt consolidation company you find. Try to check the financial background of the debt consolidation company you are going to work with. Are people satisfied with the financial services provided by these clients? Try to visit also some financial forums!
