Question : Should I look into Debt consolidation with my credit card debt being $6000 or should I work something out?
Should I go to a debt consolidation company or work it out amongst myself?
- asked by TiF
All Answers:
Answer #1
Work out a monthly budget which lists all yourincome and outgoings, so that you know where themoney is going.You can then work out how to payoff the credit card debt. In the meantime, stopusing the credit card.
- answered by origamimark
Answer #2
Well that depends on how much money you make..doesnt it? Also depends on what kinds of monthlyexpenses you have.To some people 6k in debt isnothing, and to others it is all the money in theworld. I heard a financial expert say that whenyour total debt becomes 2/3rds of your yearlyincome you are to the point where you should seekdebt help. And when it reaches your yearly incomeyou may consider bankruptcy. So base that off ofhow much money you are making. Normally i wouldthink 6k is "manageable" debt for most people.
- answered by iceman
Answer #3
It depends on your credit rating and income. Honestly, $6,000 is not that much in cc debt. Ifyour credit score is decent, you might be able totransfer that debt to a lower interest rate card. Have you tried putting together a monthly budget? You might be surprised to see how much you spendin a month and there may be some cost savingsthere that could do towards paying the card off.Ifyou are considering a debt relief company toassist you, make sure you only work withnon-profit debt relief companies. Either way,these companies will charge you a fee, but thenon-profit companies charge a much less than forprofit companies.I once had over $24,000 in ccdebt from starting a business that never got offthe ground. I worked it out myself, over a fewyears, and now am debt free. It can be done. Iwould try it on your own first before seekingcounseling. However, either way, there is a lightat the end of the tunnel so hang in there.
- answered by BHSHEEHY
Answer #4
Get on a written budget and work it out yourself.Six thousand is doable. Do not go with debtconsolidation.Myth: Debt consolidation savesinterest, and you have one smaller payment.Truth: Debt consolidation is dangerous because you treatonly the symptom.Debt consolidation is nothingmore than a "con" because you think you've donesomething about the debt problem. The debt isstill there, as are the habits that caused it -you just moved it! You can't borrow your way outof debt. You can't get out of a hole by diggingout the bottom. True debt help is not quick oreasy.Larry Burkett, noted financial author, saysdebt is not the problem; it is the symptom. I feeldebt is the symptom of overspending andundersaving. Our certified counselors will notrecommend debt consolidation for a client. Why?Because debt consolidation doesn't work.DebtConsolidation StatisticsA friend of mine works fora debt consolidation firm whose internalstatistics estimate that 78% of the time, aftersomeone consolidates his credit card debt, thedebt grows back. Why? He still doesn't have a gameplan to either pay cash or not buy at all. He alsohasn't saved for "unexpected events" which willalso become debt.Debt consolidation seemsappealing because there is a lower interest rateon some of the debt and a lower payment. However,in almost every case we review, we find that thelower payment exists not because the rate isactually lower but because the term is extended.If you stay in debt longer, you get a lowerpayment, BUT if you stay in debt longer, you paythe lender more, which is why they are in the debtconsolidation business.
- answered by JB
Answer #5
I'll not repeat what everyone else said but addmore food for thought. Debt consolidation/creditcounseling/whatever the catch phrase of the dayis, can damage your credit. It's often interpretedas you not being able to manage your bills on yourown and it negatively affects your abiliy toborrow later.
- answered by Gregg
Answer #6
start a written budget every month. You will feellike you got a raise. I started one about 6 monthsago and i found money to put towards my cc debtand i will be done next month paying off almost20k. If you do a written budget you can seeexactly where the money goes. You can tell yourmoney what to do. But, you have to stick to it.Maybe even get another job for a few months.oh yeacut up the cards. check out daveramsey.com andlisten to his radio show or find a station nearyou to listen to. He has lots of GOOD advice onmoney and debt.
- answered by heybulldog
Answer #7
That depends on the interest that you arepaying.If the lending company can give you a lowerrate than the card, then get a consoldiation loan. Generally, a $1000 credit card will take twicethe time to pay off as a loan, so keep that inmind...But, that being said, if you can makebigger payments, considering it's only one debt, Iwould do that...just pay it down as quickly as youcan, and lower the limit as you go so you can'track it back up.
- answered by xylina_69
Answer #8
Combination of various high interest loans into asingle one, it is called debt consolidation. Theaim behind debt consolidation is to reduce thepayments or the interest rate. Opt for a debtconsolidation loan: The easiest method of gettinga debt consolidation loan is to utilize the equityof your home. Equity of your home is calculatedand determined by the difference in the amount youhave paid and the amount you owe. If the amountyou have paid is more than the amount due, you canuse it as collateral. This allows you to borrowmoney on lower interest rates. Besides, you alsoget tax benefit on this type of loan. Consult yourtax advisor before opting for this loan.
- answered by Succes
Answer #9
This calculator may help you. Enter your debts andit will help you calculate the payment for a debtconsolidation loan and it will compare that tousing a debt elimination strategy so you can seewhich is best in yoursituation.
http://debt.bizcalcs.com/Calculator.asp?Calc=Debt-ConsolidationThis calculator uses thedebt elimination strategy used in the one above,but gives you a monthly payment schedule usingyour debts and how much you canpay.
http://debt.bizcalcs.com/Calculator.asp?Calc=Debt-EliminationGood luck eliminating your debt!
- answered by ekibitz
Answer #10
why not get a 12 months interest free credit cardand transfer your debt into it? Then pay off your$6000 as quick as you can.
- answered by a58392
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measure and fulfill your financial needs
