credit card consolidation?

Question

Has anyone tried credit card consolidation? what are the pros and cons? does it work? who do you recommend i go to for that? does it ruin your credit? should i just pay credit cards regularly instead?

Answer 1

If you ask any third party to deal with your credit cards debts, it will ruin your credit for a long time. The best way to handle credit cards is to pay them in time without maxing out your debts.
If it is too late, then explore the other ways to get rid of debts:
1. Negotiate for lower financial charge with credit vendors,
2. Open new card with 0% interest on transfer balances for 0.5-1 year.
3. Has a house with equty on it, think about line of credit or other options through financing the home.
4. Pay your cards smarter: start adding more to pay off the balances with higher interest. Keep minimum payments on all others. All the savings use to pay next balance.

All this procedures will affect your credit history, but not as severe as using other companies to help you. Even bankruptcies are not ruin credit as much as Credit Counceling Services.

Answer 2

If you are considering a credit repair/consolidation company, don't do it. Many will just take your money and ruin your credit. If you are just looking for a loan to pay off all your credit card debt, that's also not a good idea. It's just shuffling your debt.

Instead bite the bullet and work on clearing up your credit card debt on your own. Make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, etc. Take every penny you can squeeze out of that budget and throw it at your highest interest rate credit card while paying the minimum on the rest. When the highest rate card is paid, move to the next till they are all paid off.

If you work at it, you can pay off all you credit cards in 2 or 3 years. Then only charge what you can afford to pay in full at the end of the month. You credit score will improve, you'll save all that interest, and stay out of debt.

Answer 3

I actually work for a major banking institute. Yes I have also done the cccs I do recommend it..if you are not able to maintain regular monthly payments, high intrest rate, over the limit for too long and if your creditor is not able to give you an in house program. Bank do have programs speak to them and explain your situation. There are long term and short term assistance that is offer with o late fees nor over limit fee as well as a much lower intrest rat. First thing to do is evaluate you situation and ask your self what has cause you to reach a decision of consolidating is your situation going to be resolve w/i 12 mo. If not then you need debt management again ask the bank what they have. If no assistance is offer Make sure you go with a non-profit organization who is recognized by the BBB and has certified agents. One I recommend is NOVE DEBT. It will not affect your credit as far as score, the number one thing is to include all revolving debt. Do not open any new accounts. It will depend on the bank if they report on the credit bureau. That is the only way it would be put on there. There are no negative factors with trying to become debt free...

Answer 4

Consolidation is a great way to make it easier for you to maintain debt. You can consolidate with a consolidation company or by yourself with different and new credit cards. The consolidation companies are usually expensive and have really ugly rates, but make the minimum payments low, so that you feel like you're prudent. I recommend a technique in the book here http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2Fexec%2Fobidos%2FASIN%2F1600200400&tag=thestateofart-20&linkCode=ur2&camp=1789&creative=9325 called credit arbitrage (technique #10) as a way to consolidate and really save money. It'll take a little more initiative on your part, but you'll save a lot of money!

Good luck!

Answer 5

If you are having a hard time paying your bills on time and making more than the regular monthly payment then yes, debt consolidation can help you! It won't look good on your credit report, but it WILL look a lot better than charge-off's and late payments!

Go to the website below and read ALL of it! I was in the same position as you and I made my credit score go from 480 to 709 in one year with the help of this site and it's sponsored links!

You'll see why when you go to this site. I highly recommend them!

Answer 6

I do not need an instant reply however keep in mind this: Will you ought to use your condo as safeguard? You could lose your dwelling. Can you pay off early should you get fortunate? Can you're making further repayments should you discover your self with just a little further to spare as soon as in a whilst. Is the curiosity cost constant or can they crank it up? Double examine the fee agenda to ensure you are going to be larger off. Check for overpriced unemployment/ ailment coverage. Also, keep in mind this: your whole debt might be in a single situation. If you get into predicament with reimbursement then it's going to particularly be valued at their whilst to come back once you. Smaller money owed with unique corporations would possibly supply you an less complicated time should you get at the back of.

Answer 7

Online debt consolidation comes in many forms, so it is important that each consumer reflects on what their needs and concerns and financial situation is before signing up for an online debt consolidation program. The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.

Since there are a variety of online debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you.

Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts.

Debt Settlement
Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money.

Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact.

Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.


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