Round and round about debt consolidation. I need real answers?
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First of all pay off as many of your smaller debts as you can before you buy a home, and close any credit cards that you don't use anymore, the more revolving debt you may have the more your credit hurts because they look at that as posible debt that you can have. Even if you have accounts that you are unable to pay off go ahead and close the account, you will still need to pay off the balance but it won't look like you can go a charge up a big balance. As for debt consolidation, I would only do the things that have large interest rate so that you have them all in one loan that has a payoff balance and the interest is not as high. Whatever you do get rid of the Credit cards you only need one, just don't charge more than you can pay off. I don't think that having a joint checking acount will be an issue with debt consolidation. Just sit down and look at all of your statements and balances and see what you can pay off in the next couple of months prior to buying a house, then in another stack decide what has a higher interest rate and balance.
Be wary of these debt consolidation companies they are in it for a profit also. Plus it somehow ends up costing people more money because the payoff was extended, therefore the interest being paid ends up being more, and make sure you read the fine print. My husband did this with a large amount of money and then in the end what was suppose to be a loan for only five years was going to actually end up being 11 years to pay off, at 13%. It had something to do with what they were sending us as the monthly payment amount with our statement. Kind of like paying the minimum on a credit card payment, I'm still not quite sure how they did it. The company at that time was MBNA and is now owned by Citibank.
If you can go to a bank and discuss with a loan officer what your options and take all your statements and everything they will help you more than anything.
debt has nothing to do with checking accounts, just go in and open one.
you need something to consolidate against, usually. without having home equity as collateral, theres not a lot of options.
the student loans are the exception, you should just have to call sallie mae
The best advice is to go to the professionals. Debt counselors are great and will help you a lot. I consolidated my debt but it was only student loans, I don't know how it works if you factor in credit cards, etc.
Managable would be to have a very small, cheap wedding. Pay off the debts you have and save as you can for your house. Put the house off until you have fewer debts on your plate.
Just because you "consolidate" your debts doesn't make them go away or get any smaller. You may get a smaller monthly payment, but it makes the payments longer in duration.
And apart from the student loans, what did you do to get into such debt in the first place? If you buy on impulse and buy things that aren't a necessity with a credit card and you don't change the core behavior, you'll get into the same debt again and again.
It depends on how much you guys make. I would pay students loans separate, because it is low intrest! Don't go to debt counselling unless you cant make the regular payments. Debt counselling will lower your credit score. It will appear on your credit report as in debt counselling. Not much you can do other than do balance transfer to low intrest cards or zero % intro rate.
Having been in Real Estate and Mortgaging for many years I can tell you that you have a great many programs open to you throughout your city, your county and state because you are a first time homebuyer. 25 K is NOT that much money although you feel it is because your life together is just beginning. If I were to council you I'd ask a few questions like; 1. How long will you stay in the home you're going to purchase? This is a VERY important question because in the market today you can get a home that is considerably under priced. You can then buy that home and roll in the equity. In other words get cash back and pay for your loan. Depending on the state, you can also get seller paid fees if you negotiate right. So it is a win/win if you stay 2 years or 10 years. Experts say take your money now and pay down the high interest. They say that the equity in time built in property will more than exceed the current out of pocket you'll pull. If for any reason you need to sell in the next two years, you'll still be in an equitable position allowing for cost reductions such as realtor fees or title fees. Trust a Realtor and he/she'll walk you through it. Good luck! All this might sound confusing. So if you need more information I'll be more than happy to connect you with someone who can help you where you're located. Contact me at my web site if you need more help.
I would look up someone from primerica.com and they could help you no bull...They are ***. with citigroup/citifinancial, but work a little diff. If you go to a primerica office and a citigroup office you may get a diff. outcome because of how Primerica is set up though you would be more likely to get the help you need try it out. Good luck.
Here goes. Once you're married Your debts become each others Don't save a penny (bank-stocks-mutual funds, etc. NOTHING) until you PAY OFF YOUR DEBTS. It's simple math. If your various credit/charge cards are charging 18% + annual interest, and your earning 10% on your brokerage acc't, guess what?!? you are still LOSING 8% !! Homebuying??! You have more immediate needs to attend to. No more Starbucks 5 dollar coffees and breakfast lunch & dinner out. If you don't tend to this ASAP, you're gonna have major problems, mark my words. 25 grand is a lot of dough, I hope you have something to show for it...
Companies offering "debt consolidation" are just going to COST you money, which is money you could be using to pay off your debts! (They often cost you credit score, too.)
Ignore your student loans to begin with, since they are the least likely agent to "beat you up"! Rank your other debts by how big they are, then pay minimums on all but the smallest balance. Be aggressive. Sell stuff. Deliver pizzas. Send everythilng you possibly can to this smallest debt until it is gone...Then move to the next one! Finally, pay off your student loans, since the interest on them is deductible anyway.
Don't worry about the APRs...though mathematically, there may indeed be a way to save a few bucks by taking APR into consideration, the psychological boost you will get each time a debt is gone will have a far more positive influence on you sticking to it till the debts are all gone than if you juggle numbers to save $100 in interest.
Good luck, & congratulations!
You need credit counselling, it looks like.
It would really help if you created a side business that will allow you to increase the Income side of your equation.
Think about separate bank accounts as well as joint.
Good luck
Well, rest assured that the boat you are in is FULL of lots of other people in the same predicament.
What I had to do was monitor my money going out. Use what method is best for you. I use a blank calendar with boxes for each day. I write in my beginning bank balance at the top of each box, what I spend is under, then ending balance. I verify with my bank each day on line. I keep track of the minimum balances of each account that is needed to be paid, the interest rate, the balance. Set aside an approximate amount each month to apply to paying down the debt. Start with the smaller balance accounts. Pay the minimum on all accounts but a specific one or two to pay them off quickly. Once you pay them off, take the same money and apply it to the next account. As time goes by, when you pay the regular amount added to the minimum amounts of those you paid off, then the amount applied to paying off debt GROWS. And debts begin to be paid off quicker & quicker. Kinda snowballs. But you have to be disciplined to stop using cards and go via CASH only on ALL future purchases.
You can also call your credit card companies and see if they will lower your % rate or amount due them (verses you filing bankruptsy..you claim..) and see if they will lower some of your balances. This is all the Credit Counseling services do for you. They lower your % rates, amounts you owe, then consolidate by earning some commission or fee for doing that. Sometimes, they actually report you under a similar clause as a chapter 11 or 13 in your credit reports - without formally calling it so.
You can get a handle on this, but it means true committment and self discipline. It's harder than it sounds. We're all in the same sinking ship. You are among friends!
Good luck!
061207 3:00p
Congratulations on getting married! Best of luck to you both.
As for your debt situation, the solution can be very tricky and time consuming. Please do not be discouraged. Debt Consolidation companies are expensive and hurt your credit. In a lot of cases, it ends up looking like a charge-off on your credit report. Not something you want when applying for a mortgage.
Sit down one evening and take a look at everything. All your student loans, vehicle loans, credit cards, etc. What is the minimum payment and interest rate for each? Does your monthly budget allow you to make these minimum payments? If not, I recommend talking to your local banker. If you can afford the monthly payments for each, do so. Then pick the loan/credit card that has the highest interest rate and put any extra money you can towards paying that one down. When that's gone, find the next-highest loan and work on paying that down.
It takes a lot of time but it's the most responsible way to get rid of debt. It won't hurt your credit score much and may even improve it. As long as you don't forget to make the minimum payments on all your bills.
Side-note - talk to your local mortgage officer too. He/she can recommend some great First Time Home-buyers programs. Those should be a great help in walking you through that process and perhaps get you a break on the mortgage rate too.
oh ok .. i got this for you...
better check it out, im pretty sure you'll discover something...
http://www.studentloansmadeez.com/...
Debt consolidation IS an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it.
In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.ht...
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.
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