lucyjrobert
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| debt consolidation? |
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I have a lot of loans that piled up during college--does anyone have advice on debt consolidation? I was looking at a program called Debtwise that is supposed to help. There is just so much information out there it is really overwhelming.
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Tue Apr 27, 2010 4:02 pm |
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jason_simpson
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If a debt management company is charging you for the debt consolidation quote, you should not go ahead with that company. Always remember that you do not have to pay anything to any company until they have suggested you a repayment solution and you are convinced that the solution will bring the much desired debt relief for you in a shorter period of time. The best debt consolidation company is the one that offers you a free debt settlement quote.
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Sat May 01, 2010 11:47 am |
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rickbarns
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| Re: debt consolidation? |
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quote:
Originally posted by lucyjrobert
I have a lot of loans that piled up during college--does anyone have advice on debt consolidation? I was looking at a program called Debtwise that is supposed to help. There is just so much information out there it is really overwhelming.
Here is some info
http://debtreliefdiscussion.blogspot.com/2010/05/bankruptcy-laws-make-debt-settlement.html
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Tue May 04, 2010 9:49 pm |
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Adria.John
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Well, in my view, when you consolidate debt, it should be much more simple to deal with your loans, and due to with consolidate debt loan, you will see how easy this is. With this you can forget about numerous creditors and searching for cash each month. Some individuals are scared to consolidate debts, because they do not understand the procedure about these loans.
The main concern in debt consolidation loans is that are very easy to get and they do not really provide a solution to the actual problem – which is staying in within the constraints of your budget. One may take one debt consolidation loan after another and run into an endless cycle of debt.
So be careful whatever you decide because that would effect your life too.
Loan Expert!
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Thu May 06, 2010 11:41 am |
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tiktaktiktak08
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| Debt consolidator |
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I have ever got some stuck with credit debt settlement. At that time I have no idea what to do a and where to get credit debt help. Luckily, one of my friends introduced me a debt consolidator. All goes well now. What can debt consolidator do? Many things!
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Fri May 07, 2010 1:01 am |
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jason_simpson
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Debt consolidation companies can work. The theory is that by knocking the interest rate down and lumping all the old debts together, the extra money saved from a lower monthly payment results in breathing room that helps a person from sinking further in debt.
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Fri May 07, 2010 3:08 pm |
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jason_simpson
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Ask for recommendations. One of the best ways to find a reputable, proven debt consolidation company is to ask family and friends if they can recommend one, preferably a debt consolidation company they’ve used and with which they had a positive experience.
Contact the National Foundation for Credit Counseling, a nonprofit organization. In addition to providing valuable information about debt consolidation, the National Foundation for Credit Counseling also has a listing of debt consolidation counselors nationwide.
Make sure that the debt consolidation company you are considering is a nonprofit. Steer clear of for-profit debt consolidation companies unless you do a thorough investigation first to determine whether they are legitimate, not a scam.
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Sat May 29, 2010 4:03 am |
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AlFromLA
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a lot of debt consolidation companies work for the same credit card companies you owe money to so trusting them is not to your best advantage.
i would do extensive amount of research before you consolidate your debt.
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Wed Jun 09, 2010 11:15 pm |
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pwsolutions
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hey lucy i will suggest you to contact Credit Solutions for Debt Consolidation Services.
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Wed Jun 16, 2010 3:53 pm |
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Credit Money & Life
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What kind of debts do you have and how much? Now Debt consolidation can be effective but there is a premise for that type of program. There are several solutions. Lets go over different options that there are in each paragraph starting with consolidation.
Debt Consolidation - Like I said before there is a premise for this program. These companies will take your debts, lump them up together and work strictly on your interest rates. They will typically adjust your rates about 2 - 3 points then charge you a service fee. So your payments would be about the same as your minimum or around 2.5% of the total enrolled balance. They will make payments for you every single month. Pros - Typically most programs will get you out of debt in 5 years. You will pay less then what you would, if you were paying back the credit card companies. You will not receive creditor calls and your payments would be made every single month. Cons - Most of the programs out there (I am not saying all) will go on your credit as a TPI (Third Party Intervention) and stay on your credit for about 7-10 years. Now TPI is viewed on your credit report as a little brother to bankruptcy.
Debt Settlement - This type of program is made for people that are really struggling, about to fall behind, are already behind and keep people out of bankruptcy. This is a process where you pay the company and they hold it in a Savings account that does not bare interest. Once your savings reaches a certain level then they will negotiate with your creditor and get a portion of your debt forgiven. Pros - Your payment will be about 1.4% - 1.9% (Typically your minimums are around 3% of your balance). Get you out of debt in 4 years or less. (If a company is saying more then 5 years then step away from them. This type of program should never be drawn out over 4 and should realistically be done in 3). You save a big portion off of what you owe. Cons - Your credit would be impacted while in the program. You can not finance anything during period of being in the program. Accounts will be closed. You will recieve creditor calls. There is a risk of litigation. Note - Be very careful with choosing these companies go to my other post on here that talks about the concerns you should address when looking at these companies. (It does not talk about any specific company but just concerns you should have in your choosing process). Click on my name and go to that thread though the threads I have created.
Consolidating on to a card or loan - This is prety much self explanitory. Pros - No credit affect. Lower interest rate and payment. You would pay it off in a shorter period. Cons - Your using debt to pay off debt. If you close your other accounts it will hurt your credit score. Note -If you have to much debt you may not qualify to do this even if you have a good credit score.
Equity Loan - Again this is self explanitory. Pros - Lower interest rate because it is a secured credit and has an asset tied to it. Know around when it will be paid off. Cons - It is tied to your most prized asset. If you default you could loose your house.
Bankruptcy - (First off - I am not an attorney nor am I giving legal advice. If you are considering this always consult with an attorney). This should always be the last option that one considers. Most people qualify for the Bankruptcy that only reorganizes the debt. Not the one that dissmisses the debt. I am not going into a lot on this as an attorney should be the one that goes over this with you.
Always weigh out all options. If you are able to make more then the minimum payment then the best option is to do this. Pay the minimums on the lowest interest cards and pay as much as you can to the highest interest card. Once the highest interest one is paid off then, go to the next highest one, while keeping the total amount going to the debt the same until all debts are paid off.
If there are any other ones, feel free to ask me and we will weigh them together.
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Fri Jun 18, 2010 12:29 am |
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pwscs
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debt settlement is the only hope
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Wed Jul 07, 2010 11:23 am |
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emarketer102
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| Approach Your Bank. |
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Sometimes the easiest solutions are just in front of us. Why not approach the bank that is owed the most? Sometimes, they assist. Sometimes, they refuse. The only way to know is to book an appointment with your Personal Bank Rep and talk with them.
I do know of cases where the loans were consolidated and the interest rate was drastically reduced.
Just ask. You will never know what is out there unless its asked for.
And to end off, make a loan repayment plan, and implement it, get out of debt, and never go back there.
regards
Marlon
How to Become a Millionaire
Last edited by emarketer102 on Tue Jul 13, 2010 3:07 pm; edited 1 time in total |
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Wed Jul 07, 2010 4:00 pm |
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Stuartthomas
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one of my friend got a great help from one of the leading debt management firm..he is not able to clear all his credit debt..also they reduces the payment he is now paying..
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Tue Jul 13, 2010 2:01 pm |
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Credit Money & Life
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I looked at the information on the Debtwise website and why would you pay for that on a monthly basis. There are companies that provide calculators like that for you to do it yourself. Here is an example of what that company tells you to do:
5 debts that total $22,300 and paying $540 a month
Card A has $9,000 at 15.99 and a minimum payment of $270
Card B has $5,000 at 28.99 and a minimum payment of $150
Card C has $4,000 at 17.99 and a minimum payment of $120
Here are the results with just keeping the payment at $540 until all your debts are paid off.
By making payments of $540 each month, it will take you approximately 4 years and 1 months to pay off your credit cards.
Based on your current combined balance of $18,000, you will pay approximately $8,081.42 in interest
YEAR 1: Monthly Payment Plan
Month Card A (15.99) Card B (28.99) Card C (17.99) Balance
1 $270.00 $150.00 $120.00 $17,760.69
2 $265.50 $156.30 $118.20 $17,517.78
3 $261.07 $162.50 $116.43 $17,271.13
4 $256.72 $168.60 $114.68 $17,020.64
5 $252.44 $174.60 $112.96 $16,766.16
6 $248.23 $180.51 $111.26 $16,507.56
7 $244.09 $186.32 $109.59 $16,244.74
8 $240.02 $192.03 $107.95 $15,977.53
9 $236.02 $197.65 $106.33 $15,705.80
10 $232.08 $203.19 $104.73 $15,429.42
11 $228.21 $208.63 $103.16 $15,148.24
12 $224.40 $213.99 $101.61 $14,862.11
YEAR 2: Monthly Payment Plan
Month Card A (15.99) Card B (28.99) Card C (17.99) Balance
1 $220.66 $219.25 $100.09 $14,570.89
2 $216.98 $224.44 $98.58 $14,274.42
3 $213.36 $229.54 $97.10 $13,972.55
4 $209.81 $234.54 $95.65 $13,665.12
5 $206.31 $239.48 $94.21 $13,351.96
6 $202.87 $244.33 $92.80 $13,032.91
7 $199.49 $249.11 $91.40 $12,707.80
8 $196.16 $253.81 $90.03 $12,376.46
9 $192.89 $258.43 $88.68 $12,038.70
10 $189.67 $262.98 $87.35 $11,694.35
11 $186.51 $267.45 $86.04 $11,343.23
12 $183.40 $271.85 $84.75 $10,985.14
YEAR 3: Monthly Payment Plan
MonthCard A (15.99) Card B (28.99) Card C (17.99) Balance
1 $180.34 $276.18 $83.48 $10,619.90
2 $177.33 $280.45 $82.22 $10,247.30
3 $174.38 $284.63 $80.99 $9,867.14
4 $171.47 $288.76 $79.77 $9,479.22
5 $168.61 $292.81 $78.58 $9,083.33
6 $165.80 $296.80 $77.40 $8,679.25
7 $163.03 $300.73 $76.24 $8,266.76
8 $160.31 $304.60 $75.09 $7,845.64
9 $157.64 $128.44 $179.95 $7,415.65
10 $155.01 $0.00 $384.99 $6,978.21
11 $152.43 $0.00 $387.57 $6,534.35
12 $149.89 $0.00 $390.11 $6,083.98
YEAR 4: Monthly Payment Plan
Month Card A (15.99) Card B (28.99) Card C (17.99) Balance
1 $147.39 $0.00 $392.61 $5,627.00
2 $144.93 $0.00 $395.07 $5,163.30
3 $142.51 $0.00 $397.49 $4,692.79
4 $377.93 $0.00 $21.93 $4,215.35
5 $540.00 $0.00 $0.00 $3,731.52
6 $540.00 $0.00 $0.00 $3,241.24
7 $540.00 $0.00 $0.00 $2,744.43
8 $540.00 $0.00 $0.00 $2,241.00
9 $540.00 $0.00 $0.00 $1,730.86
10 $540.00 $0.00 $0.00 $1,213.92
11 $540.00 $0.00 $0.00 $690.10
12 $540.00 $0.00 $0.00 $159.30
YEAR 5: Monthly Payment Plan
Month Card A (15.99) Card B (28.99) Card C (17.99) Balance
1 $161.42 $0.00 $0.00 $0.00
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Tue Jul 13, 2010 6:00 pm |
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Eric80
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I do not know the company, so can not say much about it.
In most cases, consolidation is good for you, however, you need be careful for the interest. if you cna not get low rate, then consolidation could make things worse.
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Tue Jul 13, 2010 7:35 pm |
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