My husband and I are thinking of consolidating our bills, but we don't know where to start. Including credit cards, small personal loans, furniture that we had financed, and medical bills, it's only about $5,000, but our interest rates are so high, we want to try to change that. We spoke with CCCS (Consumer Credit Couseling Services), but I'm kind of 'iffy' about that. I would love to be able to just take out a loan for $5,000 and pay everything off, but neither one of us have good credit, so I don't know what to do. We both have scores of pretty close to 525.
Also, we do not own a home, we're renting.
Any advice?
2007-03-07 04:08:28 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
it is called a debt snowball. Start with the smallest amount owed. Stay current with every one else and pay as much as you can on the bill.Sacrifice -- brown bag lunches- no eating out rice and bean beans and rice till it is paid off. Then add what you were paying them to the next and then the next and so on. The reason for starting smallest to largest is you will feel accomplishment as each one bites the dust.
Good luck to you
2007-03-07 04:14:56 · answer #1 · answered by golferwhoworks 7 · 0⤊ 0⤋
Golfer gave you a great answer. If you need more info check out www.daveramsey.com. He gives great advice and tools to help you control you own finances. He has a radio program. If you listen to him for a few days you'll be convinced. But the basics are like Golfer mentioned, set up a budget that you and your husband agree on. Spend your money on paper on purpose. If you are contributing to 401k or other retirement/investments suspend them until you get you debt taken care of. And work on the debt snowball. You'll feel better about your choice and you'll be in control of you finances. Then the best thing is to avoid buying things on credit.
2007-03-07 04:26:09 · answer #2 · answered by identitywasused 1 · 0⤊ 0⤋
I think you will not have a chance with any debt consoliation companies because they will mainly look for your assets in order to be eligible to join them.
I would suggest you to join a debt settlement company who will negotiate with your creditors on your behalf and bring down your principal debt amount by around 30% to 70% depending on who your creditors are. You can make minimum monthly payments which are customized for your convinience. They will knock off your unsecured debt within 24 months.
Check this company. They helped me out with the same kind of unsecured debt situation.
http://www.debtfreeafterall.com
Good Luck
2007-03-07 07:24:09 · answer #3 · answered by Hima K 2 · 0⤊ 0⤋
"Going for online debt consolidation is a good option, you need to take into account the fee charged by the debt consolidation companies.
When you gets into a debt trap it becomes difficult to get out of it. Taking more loans to repay the debts leads to more stress and financial crisis. Finally, there is no option but to adopt debt consolidation, which leads to a new llease of life. Many people receive abusive calls from debt collectors and are stressed. Hence opting for debt consolidation is the number one solution and helps to overcome abusive calls and be free from mental stress."
2007-03-08 00:05:24 · answer #4 · answered by sun s 2 · 0⤊ 0⤋
another vote here for the Daveramsey plan. Go to his website and listen to his radio show in the archives. he keeps the last 10 shows in the archives.
2007-03-07 04:38:41 · answer #5 · answered by heybulldog 5 · 0⤊ 0⤋