2006-10-12 08:14:07 · 10 answers · asked by Dana R 1 in Business & Finance ➔ Credit
It works but you want to go for someone certified you can trust,
see this
http://debt-consolidation.50webs.org
2006-10-12 17:00:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Debt consolidation can work for you, but be sure to use it wisely. They say that after 2 years the majority of people who do debt consolidation have more debt, not less. This is because they use debt consolidation as an excuse to keep on spending, and the debts just grow.
The smart thing to do is to consolidate your debt, cut up all but one of your credit cards, and live by a strict budget so that you keep within your income. The even smarter thing is to pay more than the minimum back on your debt consolidation loan so that you get out of debt cheaper and faster.
This website has lots of information and advice that can help you on your way. Good luck!
2006-10-12 11:26:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I highly recommend it. I work in the financial services field.
After college, my finances were a mess! I got in waaaay over my head. I had one major credit card and a few store credit cards. My minimum payments for all bills combined was outrageous to me yet it was only about $4000. Needless to say, as a recent college graduate with an entry level job, I was in major debt.
I called a debt consolidation service. It took some time to get them all the info but by the time all was said and done, most of my credit cards now had 0% interest and my minimum payment for all cards was over half of what it had been!
The only thing you have to keep in mind is that part of your monthly payment is going to the debt consolidation service. By the time I had been out of college for 2 years, I had a better paying job and was able to cancel the debt consolidation. I was able to take the $25 or so that was being paid to the service and apply it to my monthly payments on the cards- I was then down to one credit card left as I had paid the others off. The downsized interest rate on the remaining credit card remained.
The only problem I had run into was when I was thinking about buying a condo instead of renting an apartment. By law, you must be out of debt consolidation for 12 months before you can be approved for a mortgage.
Other than that, no issues. It doesn't effect your credit report either. I say call today and see what they have to offer. It might take a load off your mind!
2006-10-12 08:32:08 · answer #3 · answered by royalldybg 3 · 0⤊ 0⤋
It works but you can't be late or miss payments because they may add a fee and report to the credit bureaus and all a credit consolidation company does is work out something with the people you owe money to lower the interest and collect the money and dispurse it to all the companies and charging a fee for their services and someone I knew did that when he was 5g in the hole. Also check your credit history to make sure all the debts are off the record annually.....www.annualcreditreport.com
2006-10-12 12:12:23 · answer #4 · answered by nabdullah2001 5 · 0⤊ 0⤋
If you are in huge debts and losing track of paying records, then debt consolidation is for you. It offersa reasonable interest rate and the individual has to only make 1 payment every term (monthly usually).
It can be a bad idea because it can affect the person's credit score negatively.
http://www.freewebs.com/infosource100
2006-10-12 08:41:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Freedompoint is working well for me!! There is always someone to talk to if I need too. THey also have discounts at numerous buisnesses to try to cut everyday expenses for you. Some creditors tell you they won't accept debt consolidation but freedompoint will work with you and them. It is an awesome program!!!
2006-10-12 08:20:12 · answer #6 · answered by jagaja131 2 · 1⤊ 0⤋
It can work if you are disiplined enough. Most people are at first but then they get back into their old spending habits and the next thing you know, not only do they have the debt they had before consolodation but now they have the debt consolodation loan to deal with as well. be careful if you do it.
2006-10-12 08:18:51 · answer #7 · answered by Scott K 4 · 0⤊ 0⤋
If you are thinking of consolidation, here is an option I would want you to consider seriously:
http://goaddr.com/8r6
2006-10-12 19:25:39 · answer #8 · answered by Bulldog 3 · 0⤊ 0⤋
With the right company, it can help. But there are so many shysters out there, you have to be very careful.
2006-10-12 08:15:37 · answer #9 · answered by kja63 7 · 0⤊ 0⤋
i don't think it works, i've done it twice and i still have credit card debt.
2006-10-12 09:38:05 · answer #10 · answered by koifishlady 4 · 0⤊ 0⤋