Consolidation-how does it work>? Is it a good idea?

Question

School Loans

Answer 1

Combination of various high interest loans into a single one, it is called debt consolidation. The aim behind debt consolidation is to reduce the payments or the interest rate. You make a single payment toward the loan instead many payments each month. This reduces your financial burden and you can have surplus cash left over. Credit counseling services offer debt consolidation loans. Check out the credentials of the credit counselor and find out if they are authorized by the government.

Answer 2

Debt consolidation?

What would you want knocking at your door, five 300 pound gorillas or one 1500 lbs gorilla.

The same w /debt consolidation. Five $ 300.00 payments a month or one $ 1500.00 payment each month.
But you do save four stamps!

Answer 3

A Debt Consolidation company will negotiate with your creditors and arranges minimum monthly payment plan. They will not negotiate to reduce your principal debt amount though. And also god knows how long it will take for you to be debt free if you pay minimum amounts. They will also ask for your assets as a security in order to join their program.

I would suggest you to join a Debt Settlement company who will negotiate with your creditors to bring down your principal debt by around 30% to 70% depending on your credit companies. You can make one monthly payment according to how many months program you are joining with them which can be between 3-36 months.

They give you customized monthly payment options according to your concerns. There are no hidden costs and upfront fees associated with the monthly payment options. Once you join their program, they will start negotiating with your creditors in 24 to 48 hours.

For more detailed information contact this debt settlement company who has helped me out with the same unsecured credit card situation.

http://www.debtfreeafterall.com

Good Luck

Answer 4

It depends on what your goals are. If you want to get out of debt and stay out of debt it's only good if you change your habits. If you consolidate and then just acquire more debt then you'll be worse of than before.

Answer 5

What type of consolidation are you referring to?

Debt consolidation?
Industry consolidation?

Answer 6

You go to the bank and they look over all of your credit cards and major bills, and they put them all together into one payment. It should reduce your monthly payments and you should only have the one payment. I did it and I think that it was one of the best things that i have done.

Good Luck

Answer 7

go to www.adviceontime.com and read an article that is titled Credit. this will give you some good ideas as to how to approch your situation.