Myself and my soon to be fiance are in a lot of credit card debt. Between the both of us we always pay our bills on time but now it is starting to become a problem where it is getting overwhelming. I want to get a loan to pay off everything in 4-5 yrs but don't want to work with a debt solution company if it is going to hurt our credit.
2006-09-17 13:03:55 · 11 answers · asked by Ryan 21 2 in Business & Finance ➔ Credit
There are a couple of options I would suggest. Don't use a debt solutions company. They usually just have some $7 dollar employee telling you what to do while he reads the scripted answers to you. First fiand out what your current credit score is and then put that to work. For example you can get a higher limit card and balance transfer all your debt with a $0 balance transfer fee and then usually 12 months free interest. Upon this method continue paying the highest amount you can monthly. After time it will be paid off quickly. Your motivation and dedication to your spending habits will be hard to change. Although determination will get you through it. 2nd, choice I suggest. Let me know your credit situation and I will help you evaluate what bank and card you will get the best rate from. I have done this now for 5 years and completed cleared my bad debt. Just by rearranging my debt I was able to have plenty of money left over to invest. If you need anything else. Let me know. CLINT
2006-09-17 13:12:45 · answer #1 · answered by clint 1 · 2⤊ 0⤋
The best answer so far is The Dogs of War. Clint has some good points too. I work at a Bank now, and previously a Mortgage Company. Any way you cut it, it looks bad on you that you had to go a debt Management company. Your credit score will reflect it. Nowadays, it takes a score of 700 to get a good rate on loans. And I do not think you could place ANYWHERE near 700 if going thru debt mgmt. Lose the cards, pay the smallest ones off first. Use that extra money (from paid off cards) to apply more to the next card, and keep going. I know it won't be easy, but you will have the satisfaction of working it out on your own and your credit will not suffer as much. Good luck!
2006-09-17 14:28:21 · answer #2 · answered by arydl 1 · 0⤊ 0⤋
Clint's way is obviously the best one, if you can get a credit card that charges you no interest for a while then all the money you save can go towards your debt. There are a few of these offers about, you can even move the debt on again when the grace period ends; pay your debt, not the interests. You can get through it, so long as you apply some discipline and a change in spending patterns.
more tips:
http://finance.ebookorama.com
http://credit-repair.ebookorama.com
2006-09-18 13:25:39 · answer #3 · answered by ken_voss12345 4 · 1⤊ 0⤋
I know citibank offers consolidation loans, not another credit card,but a consolidation loan. If you end up getting a term loan, make sure that it will allow you to make payments to the principal. I had $6000.00 worth of debt three months ago. Now, I'm almost done paying, simply by paying off card with higher interest, even if the balance is lower that the rest of the cards. I also abstained from unnecessary expenses. You'll be surprised how much you can add to your montly payments by cutting down on "wants". I'm saving $120.00 a month by taking the sub to work rather than driving. Those $120.00, I'm adding to my payments.
2006-09-23 19:37:52 · answer #4 · answered by V 3 · 0⤊ 0⤋
A word of advice from someone who has been there and done that; don't get a loan, and don't use debt consolidation services. Using debt consolidation won't hurt your credit rating outright. But if in the future, you try to qualfy for a conventional, VA, or VHA loan, you will be treated the same as if you had filed for chapter 13 bankrupcy.. And you really shouldn't need a loan if you just change your spending habits. Paying on credit is the most expensive way to buy something. Trust me, the best thing for you and your fiance would be to cut up your credit cards, and work out a realistic spending budget. A good way to pay off all your debts without a loan is to cut back on your frivolous spending, and put as much money as you possibly can into paying off your debts by paying the minimum each month on all but your smallest debt, which you should put as much as possible towards. When that one is payed off, move on to your next smallest debt, and so on, and so forth. By reducing the number of debts you have quickly, and by putting the minimum payments of your payed-off debts toward your unpaid ones, you can pay more each month on your larger ones. (Once you get to them). It should be possible to pay them all off within only 1 1/2 to 2 years. Dave Ramsey calls this method the "Debt snowball", and it works. (Believe me!)
2006-09-17 13:30:58 · answer #5 · answered by Incorrectly Political 5 · 1⤊ 1⤋
I am using a debt solution company, and it hasn't hurt my credit, it has helped it. My bills are all paid on time with much less interest, I make one payment to the debt management company, and they pay the credit card companies. They do the negotiating with them. I no longer have late fees, I have my payment taken out of my checking account automatically. Since my paycheck is on direct deposit, I can practically forget about the bills. I love it. Only detractor is that you are not allowed to create more credit debt until the cards are paid off. But my husband has his own credit cards, so we still have available credit under his name.
2006-09-17 13:15:54 · answer #6 · answered by dbarnes3 4 · 1⤊ 0⤋
If you own a home and can get a variable home equity loan, you have the ability to not only pay your mortgage off faster, but to include your credit card debt in this payoff. Your current lifestyle will not change, you don't have to refi, and it's not a bi-weekly.
This process offered by United First Financial (www.ustfinancial.com) is software driven, web based and guaranteed to work as long as you follow the system.
There is no out of pocket expense to participate. Email mma-program@cox.net for more info.
2006-09-22 10:12:02 · answer #7 · answered by rockin_in_vegas 1 · 0⤊ 0⤋
you're right debt consolidation will ruin your credit. you can do everything that one of those companies would do. call the people who you owe and work out an interest rate and payment plan. all credit card companies want some money compared to you not paying them anything.
2006-09-17 14:47:56 · answer #8 · answered by bella_4624_19 4 · 0⤊ 0⤋
use a company called genus credit management. it wont hurt your credit. they make deals with all the card companies. some will drop all interest as long as you stick with program, that way you only pay principle. with only 10000 in debt it wont take but maybe 2 years to fix. and when its done, your credit histroy is clean. i know this first hand, we amassed more debt than that over a 4 year period of college. it took us just 39 months to get all paid off and we were squeaky clean after.
2006-09-17 13:16:21 · answer #9 · answered by fn_49@hotmail.com 4 · 1⤊ 0⤋
go to your bankng instituion they will gladly consoildate you debt at prime rate, possibly on a personal line of credit depending of course that you are both fully employed.
2006-09-25 11:42:13 · answer #10 · answered by glasgow girl 6 · 0⤊ 0⤋