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2006-09-07 02:08:03 · 7 answers · asked by M C 1 in Business & Finance ➔ Personal Finance
If you're considering this because you can reduce your monthly payments, keep in mind that it's only a good idea as long as you don't add on more debt afterwards. If you add on more debt, you will dig yourself in deeper and deeper.
2006-09-07 02:12:22 · answer #1 · answered by Ralfcoder 7 · 0⤊ 0⤋
I think if used wisely, it can be beneficial to helping you gain control of your life and finances again. My husband and I got in over our heads with payments when I switched jobs and made a little less money, and we felt it was best to use a debt consolidation program to help us clean it up. We are still using them today (Clearpoint Financial) and should be finished with it in the next couple years.
The great thing about debt consolidation companies is that they can negotiate a fixed rate and amount with your creditors and that can't be changed or renigged on unless you miss payments. You just need to check with each one as they are different. If you contact your creditors on your own, chances are they'll let you make payments like you do now but wont freeze the interest rate to stop causing you to owe more than you do.
If you use debt consolidation and get yourself into more debt, then you haven't learned anything and will continue this cycle the rest of your life. If you use debt consolidation and get your mess cleaned up and your act together, it should cause you to think twice about going into debt in the future.
Hope this helps you out!
2006-09-07 06:42:33 · answer #2 · answered by TxCatLuvr 3 · 0⤊ 0⤋
If you are looking for vaiours aspects of debt consolidation you can check out the site in my resource box.
The site has article on different process of debt consolidation and some pointers on choosing a debt consolidation company.
Good luck!
2006-09-07 10:29:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
There are lot's of companies that can help you, but be careful, because my brother & I both consolidated are debt, and it showed up as bankruptsy in our credit report... The best thing you can do is pay what you can.. call your creditors and come up w/ a payment plan.. I'm in the process of that right now...
2006-09-07 02:15:48 · answer #4 · answered by qbanita0113 4 · 0⤊ 0⤋
I suggest you check out www.prosper.com Prosper is an on-line micro-lending community. You just register and Prosper assigns you a credit risk. Then you put out a request for funds. Let’s say you want $5K for medical bills at 15%. Individuals will then typically pledge between $50-500 at the interest rate of their choice. You get to decide if you want to pay that amount. If your loan is fully funded Prosper gives you the money and acts as a loan servicer. You pay Prosper, Prosper takes a small cut and divides up the rest to the other lenders. Take a look.
2006-09-07 02:10:11 · answer #5 · answered by Fermat 4 · 0⤊ 0⤋
if debt consolidation equates to more borrowing, congratulations! you are about to enter the world of never ending indentured servitude (economic slavery). any concerns you have about debt should be reduced to only one - the elimination of debt. if you're not on the path to eliminate debt, you are on the road to financial disaster. just ask anyone on a return flight from vegas, or someone who has taken equity ( increased their debt to fund a vacation or a new car or a happy meal or a chucky cheese b-day party!) from their home. debt is a four letter word. get it out of your life.
2006-09-07 04:57:40 · answer #6 · answered by THX1138 4 · 0⤊ 0⤋
don't do it. pay off your debts one by one. feel the pain!!! that's the only way to learn and not assume more debt later.
2006-09-07 02:57:30 · answer #7 · answered by rob123dev123 3 · 0⤊ 0⤋