Right after Christmas, my grandpa died and since I helped financially for the funeral and gave some to my grandma, I had to pinch to make my credit card payments...before I got my bills my landlord raised my rent... I had to put all that pinched money up for rent! And have since missed a few payments on my credit cards.... Terrible I know!
Now my payments are more than I make in a paycheck! I have cut up my cards about a year ago and have been working on paying them off since. I don't have much debt in the cards. only about $1,200 between the two of them. I manage my rent, cell phone, and school loan payments just fine. The only problem is the credit card bills. I was thinking about trying to consolidate them... or taking out a small loan just to pay them all off so the interest stops getting me. What do you suggest? Am I thinking correctly?
2007-03-15 02:18:48 · 8 answers · asked by aslongasitrocks 5 in Business & Finance ➔ Credit
Credit card debt reduction has become a necessity because of the numerous negative impacts of improper and mindless use of plastic money. Be it carelessness of usage or the conceit of users, whatever be the reason, credit cards can effect on your credit standing in a negative manner. Due to easily accessible facilities of credit cards, people can hardly resist of stocking and adorning their wallets with plastic money. Being an almost inevitable vanity of each wallet, these plastic cards have become more preferred mode of transaction than cash. As these cards are simpler and quicker sources of money, users are more focused on the advantages than to fathom its disadvantages on their financial conditions. Therefore, a lions share of credit card users ends up accruing poor credit status and become ineligible to receive loan approval and not to mention other negatives of a poor credit rating. This is the reason why one should consider credit card debt reduction or credit card debt consolidation to get out of the trap and become debt free.
Read more about it at: http://www.card-gallery.com/article/169,How_Credit_Card_Debt_Consolidation_Can_Help_Improve_Your_Credit_Standing
2007-03-15 19:13:53 · answer #1 · answered by caelie a 2 · 0⤊ 0⤋
Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster. But the fact remains that debt consolidation is not easy all the times. If you owe a lot of money, obtaining a consolidation loan at the lower rate of interest can be difficult. Choosing a high interest loan can increase your debt.
The primary aim to consolidate debt should be to reduce your total costs. To achieve this, you have to consider the following two points:
-Shop around for the loan with the lowest interest rate.
-Chalk out a strategy to clear off the debts in 3-5 years.
The following are some of the best methods of debt consolidation:
2007-03-15 04:55:21 · answer #2 · answered by hendy h 2 · 0⤊ 0⤋
Consolidating your credit cards is a good idea if you can get a good deal. The first place to try is your bank. They may be willing to give you a loan to pay back the cards and let you pay off the debt at an even rate.
If your bank can't, or won't, help you, then it pays to do your research and find a good debt consolidation deal. There's a website here with lots of useful information and links to further resources. I hope this helps.
Good luck!
2007-03-15 12:07:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If there's a Consumer Credit Counseling Service seek their advice then check rates on a consolidation loan. Chances are if you have been late a few times on your credit cards the APR maybe high. Also, it depends on your current debt ratio whether they will even give you a loan. Try a second job for a few months, but CCCS is your best better. Because they contact your creditors & freeze the interest rates while under their program. And, their fees are minmal.
2007-03-15 05:30:57 · answer #4 · answered by ambtous0001 1 · 0⤊ 1⤋
Seriously go to prosper.com - I have used them before and are a great place to get a small loan. Interest is less than you will get from anyplace else as well.
If you need money now you can try a payday loan company - the one below is regarded as pretty ethical and for those types of companies well received.
2007-03-18 05:43:35 · answer #5 · answered by brettR 2 · 0⤊ 0⤋
Debt consolidation is a good idea. Consolidating c cards can raise interest rates, believe it or not.
2007-03-15 02:33:27 · answer #6 · answered by Legandivori 7 · 0⤊ 0⤋
I am Mr Peterson Chris.I am a legitimate loan lender who gives out loans at low interest rate of 3%.Are you finacially down?Do you want to pay your bills?Is your credit score low?If yes,then you are in need of a loan.I deal with only honest people who are really in need of this loan.If interested contact me today with the loan of loan you need so that my loan terms and condition will be forwarded to you.You are to mail me or contact me through this email address
consultingpeters@myway.com
2007-03-15 22:09:03 · answer #7 · answered by peterson c 1 · 0⤊ 0⤋
any loan that is LESS than the APR of your credit cards is GOOD IDEA
...a family member would be best
but you better move quickly bc once those delinquincies show up on the credit report NO ONE is going to lend you ANY MONEY!!!
good luck
2007-03-15 02:30:25 · answer #8 · answered by EF 2 · 1⤊ 0⤋