What’s your input on debt consolidation?
me asked:
My husband seems to let his debt really get him down at times. I sometimes find him staring off in a days, and I know that’s what’s on his mind. I know he has student loans, credit card payments, and still paying on his truck, & other misc. bills. What’s the advantages and/or disadvantages of contacting a debt consolidation company. How if at all can that help our situation?
My husband seems to let his debt really get him down at times. I sometimes find him staring off in a days, and I know that’s what’s on his mind. I know he has student loans, credit card payments, and still paying on his truck, & other misc. bills. What’s the advantages and/or disadvantages of contacting a debt consolidation company. How if at all can that help our situation?
Thanks for your advice…
Kansieo.com
February 3rd, 2009 at 6:10 am
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It benefits you if your hubbys late on his payments. If that’s the case. A consolidated company will work it so his credit will be better. The late payment/bad credit history will become good again. They are capable of lowering credit cards interest rate and compine all your debt into just one. So that way, you wont have to write so many checks to pay a veriety of bills. I went through one three years ago. and now, my credits and bills are so much better now. Try what I have, they are great. it’s called:
Consolidated Credit Counsling.
February 3rd, 2009 at 4:59 pm
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Having debt does suck you dry and make you feel like you don’t have any options. At one time I got a personal bank loan to pay off a credit card, exchanging one debt for another but lowering the interest rate. You might try that.
February 3rd, 2009 at 9:36 pm
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If your husband is good at making payments, then you might want to consider consolidation. The only bad thing about it is you pay more in the long run. For example, you may have a total of 30 grand in debt, and the consolidation would pay all of that off, but you would have to pay them back like 38 grand. It may be lower payments, but you will be paying for a very long time. If you’re okay with this, I say go for it as long as you don’t get into more debt.
February 5th, 2009 at 5:45 pm
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If you can have one loan to cover all these and just one repayment (as long as it is at the lowest rate of interest), then it is Win Win all the way. Would not work so well if you keep using the credit card, because each new purchase would play havoc with your loan balance.
Student loans usually have a low interest rate. Keep that if you can’t consolidate, and work to eliminate the other loans one at a time, concentrating on the highest interest rate one first - probably the credit card.
Disadvantage of debt consolidation company? The fee. They aren’t doing it out of the goodness of their heart - they want to make a profit, out of your pocket.
February 9th, 2009 at 2:29 am
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Consolidation simply moves the debt around. Within a year, most people (over 90%) end up worse off after consolidation.
Look for a local source that teaches credit management and budgeting. Churches, community groups & Credit Unions are good sources.The classes could be free or cost up to $100. NO MORE THAN $100. Some people charge $500 or more and are of questionable value.
Focus on reducing spending, and paying off the smallest debt first, then the next, etc.
February 9th, 2009 at 2:50 pm
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My husband and I were in debt but chose not to use a consolidation company. I was told they put it on your credit report and it makes your score even lower. I started reading and found a lot of useful info on the Internet. I purchased Mary Hunt’s book Debt-Proof Living. It is a great book! You need to make a list of all your debt and find ways to reduce your bills. For example, I changed our cable to the basic package. I got a new, better, and cheaper cell phone company. I live away from my family so I changed long distance service so my phone bill wasn’t so expensive. Little changes like that started adding up and I added the extra money to paying off the bills. You must throw away your credit cards and not use anymore credit. I really think you should read her book before looking at credit consolidation.
If you set a plan into action and can get your husband on board I think you’ll both be happier. We are!
February 9th, 2009 at 3:49 pm
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If a person has accumulated a large amount of credit card debt due to multiple credit cards, the need for a proper counseling for credit card debt consolidation can’t be understated. Credit card debt consolidation counseling helps a person get vital insights into the facts that can help him get control over the credit card debt.
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: