Tia asked:


I have maxed one of my credit cards ($2000). I work full time so I can pay it back over time, but the thought of having that debt on my credit card scares me a little. The minimum payments are $25 a month, but I pay more than that. I also have a car loan and was wondering if maybe I could take out a personal loan, consolidate both and pay one repayment a week. What advice do you have for me?

Norma

Ten Years Gone asked:


My wife and I both have substantial student loans. However, I consolidated mine at 3.5%, but her’s were consolidated at 8.25%.

Just to pay her interest is $700/month. My payment is $300, with 1/3 currently going to principle. We also have about $8,000 on credit cards at 10% interest.

Our combined income is about $100,000 annually. Right now, I pay the $350 on my loan each month, and about $1,200 on hers. At that rate, her loan should be paid off in around 8 years.

I just feel like I may need to rethink this approach, as it seems like we make a lot of money, but are not getting anywhere fast against our debt.

Oh, we also have about 75G’s in our 401Ks and put away 10% of our salary. We’re early 30’s. Any thoughts on how to reduce this debt more quickly? Some days it feels like we’d be better off defaulting and going to work at MacDonalds…lol
Thanks to everyone for taking the time to provide such great information. Looks like the theme is to pay off the highest interest debt first, while reducing montly expenses.

I am going to stop overpaying my wife’s loan until the credit card debt is gone. Also, I think it’s time to track just how much money we spend on food and drink each month! Time to bite the bullet.

Oh yeah….wish I could reconsolidate her loan, but that will take an act of Congress. Not really fair that you can refi your house but not your student loans.

Josephine

JJJJJJJJJJJJJJ asked:


I’m graduating at the end of the semester.
I’ve worked my entire way through school.
My wife and I have one son and another on the way.
We’re finding it hard to make ends meet and I’m pretty sure my degree won’t get me a better job after graduation.
I plan on getting into grad school, but it is so expensive to apply everywhere and I don’t have the $1,000 or more I will need to apply to the various schools I chose.

I hear of many college students getting large loans to cover all of their debt to consolidate everything they owe. They pay off credit cards, cars, etc. I know it’s only a temporary fix as you still have to pay everything off, but is it a good idea?

Plus, is there even any way I can get an education loan AFTER I graduate?

Is there such thing as a good, low rate education loan to help you get into grad school?

Larry

Trong N asked:


how can i get rid of credit card debt? does it work if i call some consolidate debt company that help people in deep debt like me? please help

Tanya

eatfood asked:


I have over $4500 of credit card debt spread out among six different credit institutions as well as a car payment and then the obvious monthly utilities, rent and such. I cannot meet the minimums most months and am falling behind on some. My credit score isnt good enough to get one card to lower my payments. Should I consolidate my debt?
Does debt consolidation ruin your redit score? Assuming that my score is being tarnished as we speak simply because I cannot pay the minimums on my credit cards anyway, is it worse to have the debt consolidated? I think that I may be able pay off most of the debt in 1-2 years maybe less.

Roy

YSM asked:


We payed down our credit cards and we need a personal loan to pay off a college degree and do some fixer upper in the house we have now. We want to buy another home will this affect us in getting a loan with the bank for our new home? Our credit scores right now are excellent. Need professional advice.

Megan

Jen asked:


I’ve been thinking about taking out a small personal loan to pay off my 3 credit cards and my 2 department store cards. do you think it’s a good idea to do so? would it just be wise to continue paying off my credit cards monthly? it’s just a thought that came in my head and was just wondering if anyone else has ever taken out a personal loan to do so.

Gina

Bassam_Jeanbart asked:


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

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Debtconsolidation asked:


2 Easy Credit Card Debt Consolidation Techniques

Is your credit card debt the sole cause of your financial headache? Or maybe you are dealing with multiple credit cards, store cards and unsecured loans?

As soon as you realise that your credit card spending over the festive season, or at any time of the year, has left you with a pile of debt, then you may be on the lookout for easy but effective ways of consolidating your current credit card debt.

Debt Consolidation allows you to reduce monthly payments to your debts which should free up some extra money to help you with your secured payments, such as mortgage or rent. You may also find that debt consolidation of your credit card offers you a more competitive interest rate and that you can look towards being debt free. There are 2 Easy Credit Card Debt Consolidation Techniques:

Consolidation Technique 1: Debt Management Programmes.

Not everyone wants to consolidate their debt by getting themselves into more debt through a loan. Debt Management Programmes allow you to consolidate debt without getting any further borrowing which should offer you greater control over your finances.

What the Debt Management Programme will do is offer your creditors a lower monthly payment that you can afford. No matter how many creditors you have, a debt management programme allows you to benefit from just having a single payment to make. Your creditors may also be willing to freeze your interest and any additional charges on your unsecured debt, meaning that you can become debt free much faster.

Consolidation Technique 2: Debt Consolidation Loans.

Although Debt Management Programmes offer you a way to consolidate your debt without a loan, they are not suitable for everybody as there are downsides such as your credit rating is affected. If you are not currently missing payments to your unsecured creditors but you are still looking for an easy way to consolidate your credit card debt, then a debt consolidation loan could be your answer.

Debt Consolidation Loans are often secured against your home so it is essential that you can afford to make these new payments or your home will be at risk. You may find that the benefits outweigh the implications as you could be making a lower monthly payment with a lower level of interest.



Karl

s.dimeo asked:


I currently owe approximately 10,000 in credit cards and an additional 30K in Student loans. I make my payments on time, though usually right at or slightly above the minimum. I received a pre approved loan (I assume debt consolidation) from citifinancial for 6000. I was curious to see if it was a good idea to use this loan to at least pay off my lower balance credit card debts and some of the largest one. My instincts tell me that I am robbing Peter to pay Paul, but it does sound enticing. Could I have the pros and cons of doing such a loan? Thanks.

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