Is debt consolidation a wise thing to do?
Question:
Answer:
If you have many high in test debt, such as credit card debt, you should definitely consider getting a low interest loan to pay off all you debt and consolidate them into one single payment.
Once you have all your debt consolidated, you should put your credit cards away (keep just one card is the best thing to do). Use them only in emergency; otherwise you could get yourself into more debt problems.
It doesnt really matter if you owe ten credits $10 or owe creditor $100. What does matter is are you able to pay the debts on time? The only logical reason for a debt consolidation is if you can get it at a lower interest rate than you are paying currently. Are you talking of just consolidating credit cards? That can be a wise move if you get a loan at a lower rate and keep those cards open. Did I say keep the cards open? Yes. The reason being that your debt to credit limit will be lowered and your FICO score will go up but don't use those cards. If you are paying annual fees, though, close them down. Why pay on them? Otherwise leaving them open will help your credit scores. You can clip the cards so you won't be able to use them. Other than the purpose of lowering interest, there's no reason for debt consolidation because you will still owe the money no matter who its to. If you can get a consolidation and pay more than the minimum due, do it.
I'd have to say it depends. The way you think about money and handle it has gotten you into debt in the first place. Unless that changes a consolidation loan is a bad idea. If your ready to change the way you think then maybe its good. Check out this link
IF YOU ARE AT A DEAD END, AND NO OTHER WAY OUT, ITS PROBABLY BE BEST. YOU HAVE TO GIVE UP ALL CREDIT CARDS
It can be, depending on your circumstances and credit. It also can be a foolish thing to do. There are many good offers and bad offers out there, and these frequently depend on your credit score.
Just make sure you first know where you stand. You should also have an idea of what offers you would qualify for. That can help you make a good decision.
Yes.
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-cons...
if it helps kindly remember me in your voting!.. cheers!
A countless number of individuals in our society are in debt. There are so many ways to get credit, one can find themselves in a lot of debt in no time. If you're struggling with paying all your bills, maybe it's time to consider debt consolidation. While this option isn't right for everyone, it can be a good idea for many. In this article, you'll find out more about the consolidating your debts and repairing your credit.
Consolidating debt can be done in a couple of ways. One way to consolidate is by obtaining a loan, and using the funds borrowed to pay off all your debt. This method is beneficial for a variety of reasons. First, you won't have to deal with paying a multitude of payments every month. You'll only have one payment to make, to the institution that loaned you the money. Sometimes, the monthly payment on the loan will end up less than the amount you were paying to all your creditors because it's stretched out over a longer period of time. The downside to this type of consolidation is that it does involve obtaining a loan. If you've got good credit, this shouldn't be a problem. However, if you're in a substantial amount of debt your credit may be less than ideal, making it difficult to obtain a loan. You may be able to find a bad credit loan provider, but your rates will probably be a lot higher than if you had good credit.
The second way to consolidate your debt and stop creditors from calling is with the assistance of a company who specializes in credit counseling and repair. These companies will total all your debt, then come up with a monthly payment plan for you. They do not loan you money, but instead work directly with your creditors and collection agencies to reduce your payments, save you money, and get your debt paid off as quickly as possible. The benefits to this type of service is that you no longer have to deal with the hassle of multiple payments or collection calls. The downside is that many of these programs charge you a fee to do something you could do on your own.
When considering any kind of debt consolidation, weigh all the benefits and drawbacks before making a decision. Along with reducing your debt, it's a good idea to work on budgeting and even saving money. Consolidation can often give you the extra money and time to tackle these goals and build a brighter financial future!
Because I know you don't need another long lecture, I'll say it can be vary good thing. You should contact a debt specialist because there are a few ways to go about it. They can help you decide which road to take. Good luck!
More Related Questions & Answers...