Debt Consolidation?
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Answer:
I'm not sure about the previous advice to talk to a bankruptcy lawyer. This can effect you financially for the next 10 years. The poster even admits their credit is only a C+ right now. Is that what you want?
If you can afford it, and your credit is in good shape, a consolidation loan makes a lot of sense. Usually, though, you'll need to use equity in your home for collateral. Do you have enough equity to do this?
If you keep paying the minimum payments, you'll probably never pay it off. It you consolidate them, there will be a set "end" date and that helps many people plan better. Plus, let's say you save $300 a month by consolidating. You could put an extra $100 or $200 a month towards the new consolidation loan, and have it paid off even earlier. Plus, you're still paying less than you were before. (monthly)
If you're not a homeowner, there's still some companies that will do consolidations but it depends on how much you're talking about.
it doesn't work.. you'll be wasting your time and most consolidation companies are scams or they don't know what they're doing and you'll end up wasting time and money.
save yourself a step.. call a bankruptcy lawyer talk with them and have them set you up an appointment and they can help you along and make those collectors stop harrassing you.
they'll tell you about your rights.. your options.. if it's a good idea to just file for chapt 7 or another chapter... you can also do up an agreement with your collectors in a consolidation set up by you and the companies via the lawyers.
so on.
it's legit.. legal and binding.
and it'll save you alot of hypertension, money and anguish.
:D
i did it 4 years ago and i'm so very g.d. glad i did.
but i went for the gusto i filed chapt 7. my credit is c+ now.. so i'm not sorry..
all in essence you want to keep your credit you can and even if you file for bankruptcy you can repair your credit the lawyer will tell you how.
it's their job.
let them do this for you.
give one a call as a matter of fact call most in your town see who is the most responsive, helpful and ask for basic prices too.
they all take payment plans. OF COURSE.
:D
i did consolidation with 3 companies before i gave up.. i lost $3000 and the creditors were really barking down my neck... i was ripped off and the companies didn't get their payments!
and my lawyer told me this happens all the time. so i stopped and asked him to please help me.. with in 2 months it was over... it was a breeze actually and here i sweated it so bad.. it cost me $1000 it was well worth it. of course i had a debt of 50k.
I don't know anything about consolidation companies, but have had a consolidation loan through a chartered bank. When you consolidate, the bank (or other lender) pays off all of your debts, and then charges you (usually) a much lower interest rate as you pay them back. They also make you cancel all of your credit cards so you can't rack up more debt as you pay them off. So you have to weigh the benefit of lower interest with the insecurity of having credit in case of emergency. Remember, it might take 3-5 years to pay off the loan. Can you live that long without a credit card?
It depends on your individual situation and which one you choose.
Here is a good article with pros and cons: http://www.expert-credit-advice.com/opti...
Take Robert's advice and here is how you do all that practically:
http://tinyurl.com/yysltg
http://tinyurl.com/y4ea3x
Get the lowdown here.
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