Is debt consolidation for me?
Question:
Answer:
debt arbitration might be better, i work for a company that does that. basically they settle with your creditors for a lesser amount, usually 25-40% off what you currently owe. the only thing is you cant do anything with the student loans because it government backed. If the personal loan and credit cards are over $5000 give the company that i work for a call. 1-800 705 0961 ext 108 and ask for me my name is chris, i'll give you a quote on how much we can save you. consolidation just puts all your debt under one loan or credit card so u can just make one payment a month, and sometimes they can get your interest reduce.
1st - Take a notepad and write down the interest rates on each of the debts you own, i.e credit cards+Student loan+personal loan.
2nd - Sum them up together and divide by 5 or average the interest rate out. This is the avg. annual rate you are paying on your debt
3rd - Go to a min. 3-5 lender and ask if they can provide you with an unsecured loan for the total balance (from those 5 debts) for at the very minimum 1/2 the rate you averaged out in Step 2. Get them to calculate the payment on this loan.
IF you are getting a total savings of a couple of hundred dollars from this new loan (call it consolidation if you wish as it should be used to payoff your 5 existing obligations) - way to go. Use this money to straighten out you budget and move on to
4- re-allocate/start using this new budget savings to start a savings paln of some sort, i.e go to the bank and ask them to set you up with the monthly pre-authorized investment plan into the midium to aggressive mutual fund/investment fund. Example - World Financial Services Fund of some sort.
In 2-3 years, if you stick to it, you will drop me an e-mail at vyderzhka@yahoo.com and ask for my address to send me a good bottle of California wine... :-)
Hope that helps
Many Americans are over their heads in debt. It is important that you take steps to get your debt under control before you end up in serious financial trouble.
Find a Way to Get Better Rates
One way that can help you get rid of the credit card debt that you are in is to find a way that you can get better rates on your credit cards. You can do this by trying to find a credit card that has lower rates than your current cards, and then make transfers over to the card with the lower interest rate.
Another way you may be able to get better rates is to try to negotiate with the company or have a credit counselor negotiate with the company to get you better rates on your card. While you may not realize it, having a lower rate can actually save you hundreds of dollars and can help you get out of credit card debt much faster.
Eliminate Debts One By One
If you are wondering how to eliminate credit card debt, another way that can be a great help is to start working methodically to eliminate your debts one by one. You can choose either to pay extra on your card with the lowest amount of debt or you may want to pay more on the card with the highest interest rate, but whichever way you choose will be a great way to help you get out of debt much faster. Read all about it at: http://www.credit-card-gallery.com/artic...
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
You should use "Credit Solutions" to settle your debt.They managed to reduce my debt up to 58% and improve my credit score.Legitimate as I came accross this company on NBC News Special Edition:
http://www.tkqlhce.com/click-1813149-104...
This may be of assistance to your problems.
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