Debt Consolidation

[UDT89]

How do these companies work? Does it destroy your credit to apply to one of these companies?

I want to take all my bills and make one monthly payment.

Has anyone used one before? What are the pro's/con's? i did a google search and its impossible to tell which one is the right one for me.

 

[Fingolfin269]

Debt consolidation is not smart.

 

[DaTT]

Originally posted by: Fingolfin269
Debt consolidation is not smart.

'splain.

 

[Fingolfin269]

Originally posted by: DaTT

Originally posted by: Fingolfin269
Debt consolidation is not smart.

'splain.

A lot of these 'services' end up making your credit look as if you are going through a bankruptcy. Hell, some of them don't even pay your bills as advertised. Seriously OP, what's the major problem? Can you really not afford the bills you have or are you just trying to lower your payments so you will have more free money to spend?

 

[UDT89]

have more money to SAVE.

i need to start saving, and while i have these bills lingering i cant see the point of saving till they're paid.

85% of them arent things that are fun lol. Medical bills, car repairs, etc. Add to that a medical procedure that wasnt 100% covered

It all started when i switched jobs and had to pay for medical for 3 months. That started the BS year i had in 2004

 

[SynthDude2001]

Originally posted by: UDT89
have more money to SAVE.

i need to start saving, and while i have these bills lingering i cant see the point of saving till they're paid.

85% of them arent things that are fun lol. Medical bills, car repairs, etc. Add to that a medical procedure that wasnt 100% covered

It all started when i switched jobs and had to pay for medical for 3 months. That started the BS year i had in 2004

How bad can it be? Pay off the bills, and then start saving... (Maybe saving a little bit here and there in the meantime)

 

[UDT89]

Originally posted by: SynthDude2001

Originally posted by: UDT89
have more money to SAVE.

i need to start saving, and while i have these bills lingering i cant see the point of saving till they're paid.

85% of them arent things that are fun lol. Medical bills, car repairs, etc. Add to that a medical procedure that wasnt 100% covered

It all started when i switched jobs and had to pay for medical for 3 months. That started the BS year i had in 2004

How bad can it be? Pay off the bills, and then start saving... (Maybe saving a little bit here and there in the meantime)

Have you ever been in debt?

I mean trust me its not 10's of thousands of dollars. Its a measly $6000. Its nothing!! but i havent made any ground on it in the last 6 months. Things just pop up that cant be avoided, and i get right back in the hole

I had the same attitude to people with money problems. Pay it off and stop spending. Until you've been in that spot, you really dont know what its like

 

[new2AMD]

Originally posted by: SynthDude2001

Originally posted by: UDT89
have more money to SAVE.

i need to start saving, and while i have these bills lingering i cant see the point of saving till they're paid.

85% of them arent things that are fun lol. Medical bills, car repairs, etc. Add to that a medical procedure that wasnt 100% covered

It all started when i switched jobs and had to pay for medical for 3 months. That started the BS year i had in 2004

How bad can it be? Pay off the bills, and then start saving... (Maybe saving a little bit here and there in the meantime)

If it were as simple as that I doubt he would be looking for options. Cut him some slack.

 

[Queasy]

Originally posted by: UDT89
Have you ever been in debt?

I mean trust me its not 10's of thousands of dollars. Its a measly $6000. Its nothing!! but i havent made any ground on it in the last 6 months. Things just pop up that cant be avoided, and i get right back in the hole

I had the same attitude to people with money problems. Pay it off and stop spending. Until you've been in that spot, you really dont know what its like

What interest rate(s) do you have this $6000 sitting in? If it is only $6000, I wouldn't recommend a debt consolidation company.

 

[DaTT]

You can go to your bank and get a Consolidating loan, which actually looks good on your credit. It shows you want to pay this sh!t off. Turns out to be much cheaper in the end, obviously. I have never used one of the companies you speak of that specialize in that sort of thing....I've only ever gone to the bank. Didn't hurt my credit at all, I just bought a new car and needed the banks help, not a smudge on my rating from the loan.

Something to think about anyways.

 

[UDT89]

Originally posted by: new2AMD

Originally posted by: SynthDude2001

Originally posted by: UDT89
have more money to SAVE.

i need to start saving, and while i have these bills lingering i cant see the point of saving till they're paid.

85% of them arent things that are fun lol. Medical bills, car repairs, etc. Add to that a medical procedure that wasnt 100% covered

It all started when i switched jobs and had to pay for medical for 3 months. That started the BS year i had in 2004

How bad can it be? Pay off the bills, and then start saving... (Maybe saving a little bit here and there in the meantime)

If it were as simple as that I doubt he would be looking for options. Cut him some slack.

Thanks buddy

 

[UDT89]

Originally posted by: DaTT
You can go to your bank and get a Consolidating loan, which actually looks good on your credit. It shows you want to pay this sh!t off. Turns out to be much cheaper in the end, obviously. I have never used one of the companies you speak of that specialize in that sort of thing....I've only ever gone to the bank. Didn't hurt my credit at all, I just bought a new car and needed the banks help, not a smudge on my rating from the loan.

Something to think about anyways.

Do explain.

How does it work? they give me the money to pay everything off, and i send them monthly payments? how long does it take to pay off? early payment penalties? does it end up a lot cheaper?

 

[DaTT]

Yes, you take out a loan that equals all the money you owe. They give you an interest rate and an alotted time to pay it off. You just need to make the minimum monthly payments. All other details vary from bank to bank.....buts the same as a loan, and I think they are easier to get than just a regular loan.

 

[DaTT]

Contact the bank you deal with and set up an appointment.

 

[new2AMD]

Originally posted by: DaTT
Yes, you take out a loan that equals all the money you owe. They give you an interest rate and an alotted time to pay it off. You just need to make the minimum monthly payments. All other details vary from bank to bank.....buts the same as a loan, and I think they are easier to get than just a regular loan.

Plus you pay less interest and have a set date as to when the debt will be gone. Dependent upon you not creating more debt. Ive seen it happen too many times. You can also make larger payments to cut the principal. Unless specifically stated against that in the terms.

 

[DaTT]

If your debt involves credit cards with high credit limits, you may have to cancel them.....or at least drop the limit down until your loan is paid in full.

 

[UDT89]

Originally posted by: DaTT
If your debt involves credit cards with high credit limits, you may have to cancel them.....or at least drop the limit down until your loan is paid in full.

excellent. calling citibank now.

 

[DaTT]

Good luck.

 

[UDT89]

they only have installment loans with APR at its lowest 14.99%. Is that what you're tlaking about?

7,000 at 14.99% over 5 years is $160/month. Thats paying 9600 total

 

[DaTT]

Not sure about that. I live in Canada...possibly called something different. But 14.99% is WAYYYYYYYYYYY to high. Shop around and take your time. I'm sure there is a bank around that can help you.

 

[new2AMD]

14.9 is what your CC company can give you. A bank should be under 8 depending on your credit.

 

[DaTT]

Even 8 is high......i guess though, depending on credit.

 

[UDT89]

can you guys give me a bank that has these loans? im having some trouble

 

[PricklyPete]

Yeah...my roommate had similar problems last year, went to his credit union and got a load for about 12K for 9% even though he has some pretty poor credit (don't know exact score). Anyway...he seems to have gotten on the right track since then.

 

[Jfrag Teh Foul]

An unsecured loan is the way to go... not sure why you are having troubles with your interest though. I have one right now for 1100 and the interest was like 7%.