What is the best way to consolidate debt and make it affordable?

Answer 1

I'm doing this right now. It's best if you have or can get a low interest rate loan and pay off balances all in one spot. Debt consolidation companies ARE NOT necessarily the best way to go. Some creditors will not work with these companies. Also, it can reflect negatively on your credit report.

I recently transferred two of my three credit card balances to one loan, then cut up the cards. Now, I'm making two payments instead of four, and it had helped a lot.

I'd say talk to several credit counselors for ideas. Read a lot of websites. There are plenty out there.

Good luck to you!

Answer 2

Whatever you do, do not use a debt consolidation firm. A lot of them are like filing bankruptcy. If you have interest in a home or car try refinancing and maybe even you can get a lower interest rate since the rates are low right now. If not then try to get a credit card with no payments and no interest that you can transfer all the cards to. You have to be careful doing this though or you could end up with just another payment on top of the others cause if you do not qualify for the full amount you need to pay off all of the cards they will just transfer a small amount hence leaving you with yet another payment. Best bet would be to pay minimal payment on all cards and focus on sending any extra money every month to the lowest balance card forst. once that card is paid off then move to the next lowest bill and pay any money you where origianlly sending the the smallest bill to this one now. Cut up any cards. if you do not have cash to buy it then DO NOT BUY IT. To many people get into debt and end up with bad credit by being dumb financially. You need to be disciplined and if this means eatinf roman noodles a few nights a week and not seeing the latest movie then do it. You will feel so much better not seeing all the bills come in than you will adding more....Good Luck

Answer 3

If you belong to a credit union consolidate a loan with them. Interest rates are lower than anywhere else. Beware of companies consolidating loans. Check them out with Better Business Bureau & on the Internet.

Answer 4

Check you phone book for debt consolidating companies, but be sure that you have full details about the company before you contact them. Get all your questiones answered to your satisfaction when you contact such a company, but it is best to go to their office for a personal meeting. If you are not sure about who you will be dealing with, ask around. There are many such companies that will take over your loans, debts etc and go through a process of getting your monthly payment(s) lowered. However, such companies do not perform this service free, so be prepared to pay a fee of some kind. There are some good debt restructuring companies offering this service, so please ask around and you will find one.

Antonius

Answer 5

If you are having huge debts but cannot or will not pay, apply for bankruptcy. You do not pay your bills to your creditors but make a single payment each month to the settlement company. Your lenders will ask for the payment from this company. When your level of debt reduces substantially, the settlement company will negotiate with your lender to settle your account. The settlement does not exceed 50% of the balance outstanding. This will let you clear off your debts within 2 years. But the major drawback of this method is the damage caused to your credit rating. Ascertain the reputation of the company before using their services.

Answer 6

I'm certain that you must find every financial solution at: financial-care.info-

RE What is the best way to consolidate debt and make it affordable?

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Answer 7

Contact Citizens Advice Bureau and none of these TV companies. They are rip off merchants. If you look at the fine print they'll lend you £25K for 180 months and you end up paying £45K! CAB are there to help so please contact them first. Also banks charge quite high interest even though they say its a great deal - it isn't. Hope it works out well for you.