My parents have $44,000 (Canadian) in debt (mainly cause of stupid study programs they got duped into when they came here). Our family income is $3200 and our monthly payments are $3900. We do not own a house and we live in Toronto,
Now considering this do you guys think debt consolidation is a good idea. Has anyone tried it? How did you guys like it. Pros and Cons. Plz I seriously need an opinion on this issue!!
2007-01-19 03:00:58 · 8 answers · asked by NightSlayer 3 in Business & Finance ➔ Credit
I haven't tried it, but look at it this way: Debt consolidation is ALWAYS good. It gives you more money, peace of mind, and eventually you're debt free. HOW can that be BAD?
2007-01-19 03:10:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Many people looking for debt consolidation loans with bad credit profiles contact their bank or credit union first. And while it makes sense to do business with an institution that you already know and trust, you may be disappointed if you get turned down for a loan. Banks and credit unions offer a variety of traditional loans and other products, but they typically don’t cater to debt consolidation loans for people with bad credit. Banks and credit unions often use a risk-based pricing model, meaning the bigger the risk they think you are in terms of repaying the loan, the higher the interest rate they’ll charge you. So even if you get approved for a loan, you could end up paying more in interest and fees than someone with better credit. So whether you are approved for a loan at a high interest rate, or you get turned down because of your credit, remember there are plenty of other options for debt consolidation loans for bad credit. Just keep doing your research and contact other lenders and debt relief companies before signing any paperwork.
2016-05-24 06:54:35 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Yes, consolidate your debt!
Don't go through a debt consolidation agency, they can cause more harm than good. Negociate with the banks and lenders directly, you may be able to get your rates reduced or eliminated. You could also take out a personal loan which has a rate less than what you are currently paying.
Also look into filing bankrupcy, since currently your income is less than your monthly payments.
2007-01-19 03:07:39 · answer #3 · answered by Michael L 2 · 1⤊ 0⤋
I don't know if this company will extend into Canada, but I'm sure they could recommend someone.
I also had a debt problem. I went through American Consumer Credit Counseling and they were able to consolidate my debt and lower interest rates/payments on each account!
I would try them.
http://www.consumercredit.com
2007-01-19 05:31:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can go see someone at Consumer Credit and they will add up your debts and talk to your creditors,usually they come into an agreement where they will drop the interest and reduce your monthly payment.Some will and some won't drop the interest.But they want to get paid so they are willing to work with you.Consumer Credit is a non-profit organization so there is a 30.00 one time fee for all of their work.Check into it they are listed in the phone book directory.Hope things get better for you and your family.Good Luck.
2007-01-19 03:16:36 · answer #5 · answered by Ms Lety 7 · 0⤊ 0⤋
Consolidation for that amount may be difficult since you have no equity in a home. You should talk to a consumer credit counseling company - they can offer you guidance for a minimal fee. If you can get a consolidation loan, at a lower interest than what you are currently paying for your loans it would for sure be to your advantage.
2007-01-22 06:58:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If your debt is out of control, debt consolidation may be a good idea. Be sure to check the fees, so that you aren't ripped off.
2007-01-19 03:59:12 · answer #7 · answered by Chris P 3 · 0⤊ 0⤋
you should try out this site. it gives you quotes on different offers to help you eliminate your debt as soon as possible.
2007-01-19 10:40:50 · answer #8 · answered by super S 1 · 0⤊ 0⤋