i don't think your debt is really out of line. but it all depends on what your budget is. i have multiple credit cards and loans and what i have done is consolidated all my high interest credit cards into a low balance transfer so i can easily manage. so if you have a credit card that offers low interest balance transfers and the limit is available, i would recommend transferring them all to one account. if not, you can apply for a personal loan, although the interest rates tend to be higher. i wouldn't close the accounts that you currently have available since it does distinguish the credit history that you do have. even with a zero balance doesn't mean your credit score will go up since creditor want to see that you are capable of owing and paying them back. i don't think you should get a debt consolidation loan unless it's your last resort and you are not planning on any major purchases. it doesn't do major damage on your credit since you are negotiating to pay the debt back, however, it is noted on your report that the creditor has granted closure to your account. so when other creditors look at your report to determine whether or not they should lend you money, they will see this note. i had an delinquint account over 5 years ago in the amount of $90 to Verizon due to an extra phone line that I had opened for my brother. Although my credit score 700+, from time to time, I have been declined credit so credit scores are not the only determination. hope that helps.
2007-09-05 09:37:05
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answer #1
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answered by Diamond T 1
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a debt consolidation loan thru a bank/loan company will NOT lower your credit score as long as they are a prime lender...DO NOT go through a credit counseling company that takes your money and makes your payments for you each month...this is not a loan and some creditors don't recognize them....also if you try to purchase a house or a car in the future they might look on a credit counseling company as a type of bankruptcy....if you have a high credit score 700 or better you can get a loan thru a bank with a good interest rate somewhere around 7%
2007-09-05 09:49:25
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answer #2
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answered by Notagain 6
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It would depend on your score as to whether or not you could get the loan, next you would lose a few points for the application, and lastly many people who do this are alright for a month or so but then the temptation to use the cards kick in because hey they have the credit and really need or want a certain item, and thus end up in worse shape than they where before. So unless you can put them cards away and not use them for any reason, not a good idea
2007-09-05 10:35:30
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answer #3
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answered by Pengy 7
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Call and ask the credit card companies to change the due dates to the same date each month, like the 1st. Most of them will do this for you if it means they get their money on time! Don't consolidate, you don't owe enough yet. Transferring all of your cards to one lower-interest card is not a bad idea, then you would have just one payment. If you can't do that, then concentrate on paying off the highest interest card, then the second highest, and so on. Of course make your minimum payments (+$1) to the other companies at the same time. The way I keep track of all my bills is through online banking. I get reminders when bills are due and its easy to pay through my checking account online.
2007-09-05 10:02:34
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answer #4
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answered by jml167 4
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you can contact your credit card companies to lower your interest rate or you can use a debt consolidation company to negotiate a lower interest rate for you. you can then pay one monthly bill for all of them. I use a debt consolidation company for 2 years now. it hasn't really effected my credit score like i thought it would. but i don't really qualify for new credit like i used to.
Everyones case is different. 5,500 isn't a lot for me. i have been paying off 35,000 with only 7,000 left on my balance. You can do a debt consolidation loan and their interest rates are ususally 10-12%.
2007-09-05 09:19:17
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answer #5
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answered by falisrm 4
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For Credit and finance solutions I recommend this website where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src=5YAojmqfNU741
RE :Debt Consolidation loan? help please?
o.k i have a total debt of $5500 in all my credit cards! o.k, but sometimes i cannot keep up with all the payments beacuse it's difficult since all the due dates are in different dates! and it would be easier to make just 1 easy payment, if I get a loan of $5500, and pay all my cards! + cancel the accounts
is it a good idea?
and i would like to know if those tyoe of loans lower your credit score?
any advice? thanks
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2017-04-05 13:44:51
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answer #6
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answered by ? 6
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