2006-08-14 07:27:48 · 5 answers · asked by conry99 2 in Business & Finance ➔ Personal Finance
Very bad idea
http://www.daveramsey.com/the_truth_about/debt_consolidation_3035.html.cfm
2006-08-14 07:32:58 · answer #1 · answered by Sir J 7 · 0⤊ 0⤋
I wouldn't use any of these commercial debt consolidation places... they charge exorbitant interest rates and other fees. You would be better off calling the companies whose bills you are late on and make arrangements to pay them back, chopping up all the credit cards, cut out most (not all) of the extra things like coffee from the local shop every morning.
One thing that has helped me a lot is to get out a piece of paper and divide it into three columns. The first column I list as Obligations. Under this column I write down all the things I'm obligated to pay like rent, utilities, student loans, insurance, etc. I also right the monthly cost of each of these things. The next column I list as Necessities. The things that go under this column are things that I could cut back on and that I'm not obligated to get. Food, internet, gas, and dance class are put in this section. I figure out how much I need to spend for each of these things. The last column I sometimes divide in half. One half is called Pocket Change and this is money for the times where something pops up...for instance, unexpected doctor appointment. The last and favorite column is Allowance. AFTER you've tallied the amount of you need to put in your obligations and necessities, and after you have put 5-10% in savings, then you can figure out your allowance. Allowance, just like when you were a kid, can be used any way you want. Use it to buy that extra accessory or treat. If your paycheck isn't stretching enough to cover all of these things, then it is time to reexamine everything and start figuring out what you can do to alleviate stress: you don't need cable, internet, or ten credit cards. You don't need the second car or big house. I'm not saying it's easy, but it is worth the effort.
2006-08-14 07:44:13 · answer #2 · answered by darthbouncy 4 · 0⤊ 0⤋
Before you decide whether debt consolidation is good for you and which company is the best fit. I think some of the info in my resource box might be able to give you some input.
It is about what to look for in a debt consolidation company.
Hope it helps. Good luck.
2006-08-14 09:06:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Before you consolidate, read Dave Ramsey's book The Total Money Makeover. www.daveramsey.com
Good Luck
2006-08-14 07:33:22 · answer #4 · answered by snvffy 7 · 0⤊ 0⤋
I have heard very good things about The Lending Tree
2006-08-15 08:03:54 · answer #5 · answered by oilman11977 5 · 0⤊ 0⤋