Question:
My husband and I are WAY in debt and I have been trying to talk him into doing debt consolidation cause at the rate we are going, we won't be able to buy a house until our kids are all out of the house!! The thing is, he doesn't believe they actually help all that much and that we would be better off paying it off ourselves. Is it true that they can work with credit card companies to reduce or even remove APR from the debt amount and can give you an estimate of when you can be debt free? We have four credit cards that equal about $25,000 and we've got to the point where we are making payments just so we can get food and gas. Any debt consolidation advice is greatly appreciated!
Answer:
I highly recommend debt consolidation, but only through a bank. If you continue to keep paying the minimums on the cards, you will never be debt free. I went to my bank, explained my situation honestly and asked for help. They paid off all of my credit cards and bills and put it all into one payment. It freed up a great deal of money each month, as I only had one payment. Then they gave me a visa with a lower limit that I agreed to pay off each month. It's the smartest move I ever made, believe me, you will never get out of debt the way you are going.you need your bank's help, and if they won't do it, find someone who will. You will have the money to purchase a home much quicker than you think if you ask them to help you come up with a savings plan.also if the bank knows you will get your mortgage through them, they will be more willing to help you.
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