Debt consolidation: yay or nay?

Question:

okay so i had about 6 credit cards, all went to collection agencies. i finally got around to paying them, got current with them (out of collection), and finally got the whole amount paid. i have 2 remaining. plus a student loan. should i consolidate or is that not a good idea? these creditors tell me not to. i am 21 years old and am trying my best to get these paid off with my budget plus rent and other bills each month. what are the good and bad sides of debt consolidation? i consolidated my 2 loans i had and they became one. what im considering consolidating is my 2 credit cards i have remaining. also my credit report still shows im delinquent on my other credit cards i paid off. some have been more than 60 days, some less. anything i can or should do about that? is my credit being ruined or helping it at all by the ones i did manage to pay off?

Answer:
hi there
people in debt often seem to find some help here :
http://credit-cards.ebookorama.com...
and here http://finance.ebookorama.com
and I have found 2 more sites on the topic
http://credit.ebookorama.com
http://credit-repair.ebookorama.com...
ifyou get any luck please don't forget about me lol, hope it helped you!

Better to keep paying, contact the creditors yourself and let them know what is going on. Consolidate if you can do it by just using one to pay the other. Yes, you are helping by paying off the ones you can. Especially if you want to buy a house in the future. Try to get a credit relationship with a bank or credit union where they know you and you can talk to them. Stay away from the faceless bureaus and mailorder offers.
Keep at it.

debt conolidation No!
same as a drunk changing liquors
Visit DaveRamsey.com to learn to get out of SLAVERY.

From the situation you have explained, it doesn't sound like you are going to have a shot at qualifying for a consolidation loan and it wouldn't really work to your advantage. I am not being negative ... I am being honest. Whether you owe $1,000, $5,000, or $25,000 to one company or to 3, it's still debt to income ratio that is going to come into play along with your credit scores in determining your credit worthiness. That is good that you have paid the bills that you have (even in collection status) rather than filing bankruptcy but you still have negatives on your credit that will be there for 6 years. The good news is that you are still young. Two suggestions: (a) check out a Consumer Credit Counseling agency that is truly non-profit; and (b) look at ways to reduce your spending and/or increase your income. Please learn from the mistakes you've already made before making new ones. Write for copies of your credit reports (Experian, Equifax, and TransUnion) and update them on the cards that you have paid off once you receive the copies from all three. Time will erase the negatives but you need to replace them with positives so keep on top of the remaining bills with prompt payments, even an extra $5-10 if and when you can. But, the consolidation won't do much for you at this point in time. A legitimate Consumer Credit Counseling agency may be able to help you make lower payments than you are making now and reduce your interest providing your budget can make those monthly payments and you will be debt free in 2-4 years.

I know that if you get involved with a "Dept Free" program that renegotiates your balances; getting the credit card companies to settle for a lower pay off. This will lower your FICO score! Get involved with an agency such as Credit Counselors. These agencies will try to get your current financial institutes to lower your interest, to wave late fees, and allow you to make your payment through the agency assuring the finacial companies "on-time" payments. On the "bad" side, the credit card companies will close your accounts out; you can't charge any further. But, once the total debt is paid your FICO report will not look that bad. Also, if you can go to a bank for a personal loan, to pay off your total credit card debt, you'll probably get approx 10-11% interest. BUT FIRST. if you have been on-time with your current charge cards, call them first to see if they will reduce your annual percentage; this helps in meeting the payoff balance. A far as your student loans, depending on how long you've been out of school, you can defer they payments up to about 1 year; call the bank that holds your debt. Then you can apply what you normally pay on student loans towards your credit cards! GOOD LCUCK and remember...it's not the mistakes we make in life that count, but what we learn from them and to not repeat them again!

Got Bills to Pay Youve got a Decision to Make
By: Jeff Lakie

You'll find a wealth of information in this web site. Plus there are companies that if you decide to consolidate you can find the best deal.

Good Luck.

yay.

Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/answers/qn1643.

How to Hire a Debt Counselor?
http://www.askaquery.com/answers/qn1584.

What is Debt Relief?
http://www.askaquery.com/answers/qn1583.

Debt Management and Building Wealth
http://www.askaquery.com/answers/qn1581...

yes..The best way would be to consolidate your debts:

Online Debt Consolidation
http://www.complete-debt-info.com/catego...

Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/catego...

Debt consolidation: yay or nay?

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