Is consolidating debt a good idea in clearing debt away? If so, what are some good companies?

Answer 1

Consolidating can be a good idea, in some situations. It only makes sense if you can get a reasonable reduction in the rates you are paying. Otherwise, you are only transfering one bad debt into another.

Make sure the company you are inquiring about has a good rating with the Better Business Bureau.

Answer 2

I won't give you a company name for a variety of reasons. But yes, consolidating debt is a good idea. It will reduce the total amount that you payout each month and provide you with excess cash that you can invest. But if you do consolidate your credit/consumer debt then you must also be willing to take the next step and cancel/cut up the credit cards. Keep one for emergencies with the lowest interest rate but do not carry it with you.


Also look at your spending habits to determine why you are carrying so much debt? Before you purchase, you should ask yourself why you want whatever it is? Give yourself a cooling off period before the purchase to rethink it. Most impulse purchases usually start collect dust within a matter of weeks. Ask yourself is this a need or a want? What will I do with it once I have it? How often will I use it? Also, consider laying out a plan for your next purchases. What do you want and then save for it and pay cash. If you do need to use the credit card then pay off the balance each month. This will show that you can borrow and then pay it back.

Best of luck to you.

Answer 3

Consolidating debt is the best financial strategy. Yet out of all means to consolidate debt the best is to take a bank loan to pay your debt. Bank loans are usually 6% while credit cards are usually 28%. Also with bank loans the interest doesn't multiple onto your next bill.

Answer 4

Only if you stop using credit.

The problem most people face is that they continue to use credit cards after consoldating debt, especially through a home equity loan.

They then find themselves with even more debt, part of which is now secured by a lien on their home.

If you want to go the consolidation route, close your credit card accounts and use the money you save on monthly payments to fund a retirement account.

Answer 5

Just remember that if you use companies to consolidate and roll one payment into the other they might be bargaining your credit.Alot of companies will settle your past due amount for a lower price, but in the long run your credit suffers.And remember you pay these companies for your help.

Answer 6

It relies upon on your definition of debt consolidation. If this is paying a third party negotiate payoff/settlement, sure this is going to trash your credit. Typcially the carry all you funds till eventually the debts are 3 months late, then furnish lowball settlement lower than danger that you'll document financial disaster. some mastercard organizations refuse to pay and merely sue you. if you're doing away with a sparkling mortgage to pay off all of your charge playing cards, it remains a foul idea to shift debt to a sparkling mortgage. human beings have a tendency to run the charge playing cards lower back up. then you truthfully have the charge playing cards and that massive mortgage to pay. a extra effective way is to pay off your charge playing cards one after the different. Make a strict funds. get rid of each of the extras -- cellular telephone, eating out, new clothing, suitable cost cable and internet, etc. Take each penny you may squeeze out of that funds and placed it on the optimal pastime cost card, even as making minimum funds at something. even as the optimal pastime cost card is paid off bypass to the subsequent one till eventually they're all paid in complete. concentrating on the optimal pastime cost first potential you will pay a lot less pastime and extra will bypass on the debt. you should also seek for techniques to usher in extra money -- storage sale, carry mutually alum cans, get a 2d pastime. Throw each penny on the debt. in case you artwork at it, you pays off your mastercard debt interior of two years. not really will you pay it off and keep that pastime, yet you'll have a strong consistent on time fee historic previous that will improve your score.