Debt Consolidation?
Question:
You don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follwo it carefully.
Go check out Dave's website as well.
www.daveramsey.com
Steady there pal. Debt consolidation is a tool - not a cure-all. When consolidating debt the usual course is to take a second mortgage on ones home. The money is used to pay down credit cards and the like. These loans are at a lower rate and taken for a longer time so the monthly amount that is required is less. If it stopped there it would be the magic bullet of the finance world. BUT - people generally tend to think, "Oh, I have more money now and I can get that big flat screen that I deserve." This brings them right back into debt - but now owing even more (and owning a smaller chunk of their own home). If you are disciplined enough (and you are NOT) to not fall into that trap then the consolidation is for you. If not, then you're just getting in deeper.
Debt consolidation is just what it says. it puts all your debts into one. most if not all of these companies are a joke. What they do is not pay your creditors for months and then try and get them to settle for less money. By then your credit is trash. If thats what you have to do. You can do it yourself and save the fees they charge to help pay off the debt.
If you use one of these companies Remember. You are still responsible for the debt not the company that is handling it. If they dont pay your creditors. Your creditors will sue you not the company.
Don't do it. I have found out the hard way that these companies are scams. When you call and talk to them everything is great and they are going to get rid of your debt within four year, but when they get your payments, they don't do a dang thing for you. We went with a Delray CC in Florida and they kept telling us that the payment had been sent to the credit card company and everything was great...bull crap they didn't make a single payment and ruined our credit (they promised that this wouldn't effect our credit either way) we have been trying to get our money back but everytime we call, I am called a F****** B**** and am hung up on. We are now declaring bankruptcy and our out of a lot of money. The Attorney General Office in Florida told me all these companies are scams and most operate in Florida because they do not have to be licensed and are not regulated. Please don't fall into the same trap we did.
Hi Greg
Are you an Aussie? If you are there is a great company that can help you that featured on Today Tonight and ACA. It has literally helped many Australians get out of debt by consolidating.
There is a mini review of the company on a blog I subscribe to that might help you make more sense of it all. The address is:
http://australianfinanceblog.blogspot.co...
I really hope that helps you.
Cheers
Shelly!
I looked into debt consolidation via a credit counseling service. What they do is negotiate with the credit card companies for a lower rate. Then you pay about the same amount, but at a lower interest rate so it is paid off faster.
This didn't work for me. I have very good credit, so I actually was able to negotiate lower interest rates on my own. (It is amazing what you can do if you call and ask nicely!) The counseling service said they couldn't better my rates.
The company I dealt with I found by contacting the county Community Services office, the local Debtors Anonymous group, and a friend who got out from under a huge debt. The all recommended the same company, so I went to them.
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...
YES!!!
Go on line to www.langhornelaw.com. They will get the creditors off your back for a very low fee and you get to save money at the same time. They will negotiate with the lenders and set up a payment plan for you to pay back the amount you owe, minus the finance charge. If your creditors have access to your banking account, close them and reopen another account.
"Our program normally lasts twelve months. During that time period you will put aside money each month, usually into your own savings account. This is your war chest. You will use some of this to pay our fees and you will keep the rest to fund settlements as we reach agreements with your payday lenders. Often, there will be money left over at the end. This savings is yours."
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