Getting a personal loan from a bank or going through one of the companies that offer to cut your bills by a percentage and help you pay it off within a couple years. If I go through the bank, I can pay it off at once, right? However, will the interest (which I don't think is part of the alternative) kill me in the long run and put me back at square one?
2007-02-06 05:53:46 · 6 answers · asked by cancerking 2 in Business & Finance ➔ Credit
You might not get a loan depending on your credit. If you can maybe you should but depends on the debt. Sometimes just paying it off in the long run is better. I know it is hard but eventually you will break free from it.
2007-02-06 05:58:33 · answer #1 · answered by jessigirl00781 5 · 0⤊ 0⤋
It depends on what you can handle. If you get a personal loan then your payment will most likely be higher than the minimum payments on the credit cards. But the upside to a personal loan is that the interest is fixed and the term is installment payments (you'll know exactly when you'll pay it off) vs. revolving account (endless payments) with the credit card companies.
The credit consumer counseling should be your last resort...if you can't handle the fixed payment on a personal loan then go through a ccc. But why pay the ccc a fee to make payments for you. You could always phone the credit card companies and try to work something out with them, especially since they don't want to charge off any $ amount on their books. If your account is in good standing then maybe they can offer you a better interest rate.
Good luck with your decision!
2007-02-06 06:08:05 · answer #2 · answered by Super Mom 2 · 0⤊ 0⤋
When the banks wouldn't give me a debt-consolidation loan I went with Consumer Credit Counseling Service of Ventura County, California. They got my creditors to lower my monthly payments (and the interest rate charged in some cases). The trade-off was I had to pay CCCS directly by money order every month and they charged $10.00 a month for their services. Not bad considering. There was no penalty for paying more than the minimum amount, but you had to let CCCS deal with your creditors if there was a question or a problem. Again, not bad considering. After two and a half years I was debt-free and CCCS helped repair my credit rating. Now I'm more careful about paying off my credit cards in full every month, but I would recommend CCCS to anyone. P.S.: Had a friend who went with Consolidated Credit Counseling Service and they screwed him over. Because of their incompetence he became 90 days delinquent and a bunch of his creditors demanded payment in full immediately. He had to borrow money from friends and family to keep them from putting a lien on his house. Don't go with them -- if they have to advertise on TV to drum up business they can't be very good.
2007-02-06 06:08:06 · answer #3 · answered by sarge927 7 · 0⤊ 0⤋
Don't pay it off over a couple years; it will kill your credit. You need a lump sum to start with whether it be a personal loan or via a refinance of your home. Then, if the bills are delinquent, you should have professionals obtain the best possible settlements for you. Check out the free evaluation form at
www.totaldebtsolutionsllc.com
2007-02-07 05:38:37 · answer #4 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
If you can get a loan at a low rate to eliminate all of your credit card debt, that is generally the best option. Your credit score may be lower due to your debt balances, though.
There are some unsecured loan options through your bank or credit union that would work best. Otherwise, you may need to get a home equity loan to get the best rates.
2007-02-06 06:16:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I personally am getting ready to go with cccs to help with my bills the only down side to going with one of these companies is that it is reported as slow pay on your credit report but that is better than a deliquency :)
2007-02-06 05:59:39 · answer #6 · answered by frogbfound 4 · 0⤊ 0⤋