Is debt consolidation a bad thing?
Does a consolidation loan look bad on credit? I need to get my life together. I am under mountains of debt, with no hope of getting out of it without some kind of loan. I could not menatlly handle a bankruptcy. I need advice please!- Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But beware ? just because an organization says it is ?nonprofit? doesn?t guarantee that its services are free or affordable, or that its services are legitimate. In fact, some credit counseling organizations charge high fees, some of which may be hidden, or urge consumers to make ?voluntary? contributions that cause them to fall deeper into debt. Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in - person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U. S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial ins ution, local consumer protection agency, and friends and family also may be good sources of information and referrals
- Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way. A. Have a garage sale and sell anything that you no longer need or want. B. Get a temporary part time job, if you have one, get another. Here is a plan that can help you. If you work the plan, the plan will work for you: 1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000 - 1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you do not even have to worry about it. You must cut your spending and live on less than you make. 2. First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on. 3. Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 the minimum payment and the extra payment towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example: To start : Debt #1 highest interest : minimum payment extra payment Debt #2 middle interest : minimum payment Debt #3 lowest interest : minimum payment Debt #1: paid off Debt #2: minimum payment from Debt #1 Minimum payment from Debt #2 extra payment Debt #3: minimum payment Debt #1: paid off Debt #2: paid off Debt #3:Minimum payment from card #1 minimum payment from Debt #2 minimum payment from Debt #3 extra payment. That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have. 4. After you get all of your debts paid off, add to your emergency fund until you have 6 - 12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no - risk CD so that if you need the money you can take it out without penalty. 5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life. 5b. When you have your emergency fund in place, start saving for your retirement. Join the 401 k plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire. 5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest. You can do it and it is not as hard as you think. Just follow the plan
- A debt consolidation problem will hurt your credit report while you are on the program until the debt consolidation loan has been paid. From what you are saying, it is better to hurt your credit report now so that after everything is taken care of, it will start to build and get better. Thsi is a great idea for you to get out of debt while you still can. PLEASE DO NOT APPLY FOR ANY OTHER CREDIT OFFERS AT THIS TIME UNTIL YOU GET EVERYTHING ELSE CLEARED!
- Consolidation loans are hard to get now. Go to the library or search on line for getting out of debt information - not those companies who want to handel things for you. I found a couple bookkeeping services in my area that would manage all your money for a fee of $75 - $150 a month - if there was that much cash to spare who would need their service? Their only advantage was that you could refer all calls to "Ace Bookkeeping, who is handling my finances" - thereby getting the companies off your phone. You could do the negotiating with your credit card companies on your own - but you must be persistent and thick skinned. They work with you and reduce the interest or you file bankruptcy. Sometimes there is no choice. The interest expenses are growing faster than the amount you can pay each month. I found this site, not sure how good it is, but might help with free information. debtreductionservices.org /
- Debt consolidation can be a great way to start tackling your debt ? whether it?s just lowering your rates, getting a better loan, or cutting your payments to get debt free faster. It is important that you know what your options are and what your goals are before choosing a debt consolidation program or company. There is a chance that using debt consolidation services might affect your credit. Some debt management programs, like credit counseling, show up on your credit report. Some solutions, like debt settlement, do not show up on your credit report, but by definition cause late payments. Most debt consolidation services are there to help you get out of debt, not to sustain your credit report or credit score, so you should priorotize what you really want in seeking debt consolidation help
Knowledge Base
Give the benefits of debt consolidation loan?
i am planning for a debt consolidation loan. i want to know the benefits of the debt consolidation loan. google: debt consolidation complaints, scam, rip - off. please do this for me - do your research. there is nothing these companies can do for you that you can not do (bad credit debt consolidation)
Where do I look to find a debt consolidation loan?
where do i look on the internet to find the best debt consolidation loans? what are the best sites to look?. the fact that your question attracted not one, but four, spammers should give you a hint. asking for a debt consolidation loan is like dangling your arm into shark (debt consolidation loan)
Is Debt Consolidation a good thing for my credit score or will it damage it ?
being a recent grad and not in my prefered area of employment is rough, as it is for many recent grads. my dilemma is my finances. my poor financial decisions i. e. credit card debt in college has caught up with me and it is racking my brain. i have (bad debt consolidation)
Knowledge Base: Debt Consolidation
Give the benefits of debt consolidation loan?
i am planning for a debt consolidation loan. i want to know the benefits of the debt consolidation loan. google: debt consolidation complaints, scam, rip - off. please do this for me - do your research. there is nothing these companies can do for you that you can not do (debt consolidation)
Which is secured debt consolidation loan?
i am planning to take debt consolidation loan but want to know some information. how can i find the secured debt consolidation loan?. practically any type of loan can be wrapped into the debt consolidation process. common types include finance charges, late fees and overdraft charges, credit cards, personal loans, (free debt consolidation)
Is there any really "FREE" help services for debt consolidation? I need help but short on cash!?
i am afraid most of the ads i have seen charge a big fee for these services. has anyone tried any that were free and if so please give me website or names. consumer credit counseling charges a nominal fee if you can afford it. they are run by the (free debt consolidation)
Where do I look to find a debt consolidation loan?
where do i look on the internet to find the best debt consolidation loans? what are the best sites to look?. the fact that your question attracted not one, but four, spammers should give you a hint. asking for a debt consolidation loan is like dangling your arm into shark (bad credit debt consolidation)
Does getting a debt consolidation loan help my chances?
my fiance and i are trying to buy a house. but no where will give us a loan because he has such horrible credit. will getting a debt consolidation loan help his credit enough to be able to get a home loan? also the things that are bad on his (credit debt consolidation)
Knowledge Base: Bad Debt Consolidation
Debt consolidation a good or bad thing?
i missed a part of cnbc's "the millionaire inside" debt - free program where they mentioned the reasons why debt consolidation is bad. did anyone catch it or can explain to me why it may be a bad idea. i am in a program and i am debating whether i (bad debt consolidation)
Is debt consolidation a bad thing?
does a consolidation loan look bad on credit? i need to get my life together. i am under mountains of debt, with no hope of getting out of it without some kind of loan. i could not menatlly handle a bankruptcy. i need advice please!. consolidation loans are hard to (bad debt consolidation)
What is the good and bad of debt consolidation?
you can lose your home. you could end up owing more after consolidation, especially if you get cash out. do not get a loan to consolidate your debts. those companies just rip you off. really get to grips with all of your debts. work out exactly what you owe and (bad debt consolidation)
Has Anyone Had any bad experiences with Debt Consolidation or Check Cashing Places?
recently i used a debt consolidation company. its been a year now and besides their 39. 00 fee each month, my debt is down by 7000. 00 dollars, a situation i was never able to resolve on my own. i also recently used a check to cash company and it (bad debt consolidation)
What company or companies gives out debt consolidation loans to people with bad credit?
i want to know if you personally found a company which considered your case and gave you a loan even though you have bad credit and outstanding balances. i have researched enough about counseling and debt consolidation loans. i just want to know who has actually gone through the process (bad debt consolidation)
