Please help! Credit Card Debt Consolidation question?
Monday, August 30th, 2010 at
10:33 am
Please advise, how is it work? What’s a good non profit company to go with? Is it worthed?
At this point I don’t have a good credit and I don’t care to have a bad credit. I just want all of my debt to go away.
Thank you so much for your time.
Tagged with: Card • Consolidation • Credit • Debt • Help • please • question
Filed under: Debt Consolidation Loans for Bad Credit
Like this post? Subscribe to my RSS feed and get loads more!
there are none that are truly good. Chapter 13 may be your best bet as the trustee will disperse to your creditor monthly till you pay in full
People use the term “consolidation” for several different things.
1. A loan to pay off all debts. Its always a bad idea to shift debt to a new loan. Many people run the credit cards back up and then have the big loan payment and the credit cards.
2. Settlement companies. Most are scams and only trash your credit. Many credit card companies will immediately sue when the settlement company offers the lowball settlement.
3. Credit counseling/debt mangement program. Check here for an NFCC member in your area: http://www.nfcc.org/. These are legit, non-profit companies who offer debt management programs for a nominal fee. They don’t negotiate settlement of debt. They negotiate lower interest and payments so you can pay off your debt.
While in the program, it is noted on your credit file. However, upon completion the notation is removed and you will have decent credit.
A debt consolidation loan is the best first step to getting rid of this debt as long as you do it properly.
Basically a consolidation loan is when you take out one loan to cover the amounts of all your debts, so it is one monthly payment.
Set up the loan and it will lower your interest rates and monthly payments. The key to paying it off faster is to keep your monthly payments as high as possible, that way more money is going to the principal rather than the interest. Even if they tell you that the monthly payments are $400 lower, don’t make the lower payments. And taking a consolidation loan for more than 10 years is absolutely ridiculous! You will end up paying twice as much money in interest in the end if it’s stretched out that long! Pay it off as quick as possible or don’t bother going through the hassle of a loan.
I don’t know of any places to recommend for you since I don’t know where you live, however most local states and provinces have some form of debt coucilling service where you can call them and they might be able to offer sollutions.
I would go through this company:
http://educationreviewworld.info/go/eDebtCure.htm
They helped me out and I was $20,000 in debt…never thought I would get through it but I did.
There are two ways to consolidate credit card debts. One is by acquiring a loan and another is by applying for a balance transfer credit card. If you choose to get a loan, you can use the money to pay off all your credit card charges. In turn, you’ll be subjected to submit your payments to your debt consolidation lender.
On the other hand, balance transfer credit cards offer low rates for charges transferred from a different card. Balance transfer credit cards usually offer zero percent introductory rates that you can take advantage of. The introductory period often ranges from 3 months to 12 months. Within this period, the cardholder can pay off all his charges without the extra interest fees. Think about the savings you can enjoy from not paying the APR.
You should consider a 36 month debt settlement program. It normally lets you pay less per month and you are completely out of debt after 36 months. The company does all the work for you and you just tell the creditors to call them. My uncle used this after filling out a free evaluation form at http://www.totaldebtsolutionsllc.com Good luck.