Question : Is it recommended to use debt consolidation for credit card debt?
I am approximately $25k in debt, should I use a debt consolidation agency?
- asked by m_snider9430
All Answers:
Answer #1
Yes, If you don't own a home and want to move outof renting, a debt consolidation agency can helpyou. The simple way is also to individually workwith your creditors to contruct a payment plan. THey are remarkably flexible with clients whenthey know they are trying to pay off accounts inrelatively short time. Remeber Consumer CreditCounseling reads on your credit report almostexactly as if you declared a chapter 13bankruptcy. Bankruptcy however, does help peoplewho truly have no other alternative to debtmediation.
- answered by Green_Sea_waves
Answer #2
Debt consolidating only works if you get rid ofthe credit cards that you pay off. Otherwiseyou'll just charge them back up and end up evendeeper in debt.
- answered by CarlaCCC
Answer #3
talk to a credit counselor first. then see whatthe consolidation firms can do. many times creditcounseling firm has better rates or can get yourdebt combined for little or no fees.
- answered by bikkerbabeee
Answer #4
It is good solution if have trouble keep up withyour payments (having or not having house hasnothing to do with it though). There are somethings you should be ready for - you can not usethose credit cards no more (once they are acceptedto the program, creditors will most likely clocethat account), and it does affect your creditwhile in the program somehow negative (nearly NOTlike bankruptcy), but you gonna earn your poinstback at the end for all those credit cards paidoff.
- answered by aaja
Answer #5
Just be careful and do your research. I signed upwith a debt consolidation agency back in May. Theydecide your payments after you list yournecessities for the month, ie car payment, rent,yadda yadda yadda. However, after being in theprogram for two months, I still was beingharrassed by my creditors and later found out thatthis debt consolidation company did not make thepayments on time. So I am better off just payingthem on my own. Just do your research and ask. Its better to annoy them than to have your creditscore ruined.
- answered by sd2138
Answer #6
well, you got SOME replies but here's some greatreading, might take you a whilethough:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.comif you get any luck please don'tforget about me lol, hope it helped you!
- answered by terunaz
Answer #7
If you use an agency, you need to make sure thatyou never use credit cards again, or get amortgage or car loan for the next 10 years.Yourcredit will be torpedoed, as if you had goneChapter 13, and it stays for 10 years.You've heardof grade school's "permenant record"?Well, it doesexist, but it refers to credit.
- answered by Jeff
Answer #8
Debt consolidation can be an answer, but aseveryone else has said, it will only work to clearyour debt if you get rid of your credit cards.Inmy case I went to my bank and I was amazed thatthey agreed to give me a loan to repay my cards. Icut up all but one of my cards which I use onlyfor essential expenditure. If I pay back the bankloan at the repayment rate they want I will end uppaying quite a lot of money, but I am paying itback faster so they won't get as much out of me asthey think! So I recommend you go to your bankfirst.This website's got a lot of informationabout your options. It will really benefit you todo your own research.Good luck!
- answered by Gillian G
Answer #9
Debt consolidation is looked upon by creditors asbeing worst than bankruptcy. Since I deal withthis quite often when I look at credit reports, itshows that you can't manage your debt on your ownand you need to pay someone to help you. If youwere a bank would you trust that person who can'tseem to manage their finances with a loan,probably not, or if you do you would give them avery high interest rate. The reason is they don'tbelieve you will be able to manage the loan theyare going to give you so they rather not deal withyou. Be careful, weigh the pros and cons.
- answered by S K
Answer #10
Credit Card Debt Consolidation LoanWhen using thecredit card, people ignore the consequences ofusing the card too often. Frequent use of creditcard causes bills to be accumulated and worsensyour credit score. Besides lowering......
http://www.debt-refinance-loan.com/category/Credit-Card-Debt-Consolidation-Loan.html
- answered by huh h
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measure and fulfill your financial needs
