Debt Consolidation

Hello all, I have a question regarding debt consolidation. I have about 15k worth of debt and have tried applying to two companies for a debt consolidation loan and was denied both times. I thought about trying what one of the other posters suggested , writing to the individual companies threating a voluntary bankruptcy order. I have about 10k in the bank, but I don't want to borrow from that lender because I wouldn't be able to use the money in my account. My credit is only good. What other options do I have? Thanks

If you have 10k in the bank, why not use half of it on your debt. That would make things much more manageable.

Then get yourself on a written budget and attack the other 7500.

2007-08-27 07:05:01 by sherina d

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I have about $6,500 worth of debt, my income after taxes is about 21,000 a year. Most of my creditors have closed my accounts (all of my credit is maxed out). I recently got my FICO score and it is 529 (very, very poor). I have called some companies that specalize in debt consolidation and I have been told that I do not have "enough debt". I talked to a professional about bankruptcy and was advised against filing because I do not have "enough debt". I am a renter, and do not have any assets that could be held for collateral. With my credit score being the way it is, and closed accounts on my credit record... what are my options?

You don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control.

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follwo it carefully.

Go check out Dave's website as well.

www.daveramsey.com

2007-09-06 10:36:31 by Melanie B.

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I recently purchased a home (3 months ago) and financed 100% of the home. At this point I do not have an equity in the home. I am currently looking for a way to consolidate some of my debt to lower my rate, lower my payment, and ultimately pay off the debt sooner. I have 1 car loan, 1 personal loan, and 5 credit/store cards that I would like to consolidate totaling about $16,600. My FICO score is currently 686, and I am on time every month with all of my bills. I have paid all bills on time (most of the time more than the minimum) for more than 3 years straight. My problem is that my Debt to Income ratio is probably too high for most lenders to consider me for a consolidation loan. What can I do to consolidate ALL of my debt? Any feedback would be appreciated.

Debt consolidation loans are usually a rip-off, extending loans way out and you end up paying a lot more in interest, plus the loan origination fees increase the amount owed.

Instead:

Transfer credit card debt to lower interest rate cards, some will give you 0% for a transfer. Do this before deciding which one has the highest interest rate to pay off first.

Pay at least double the minimum monthly payment on the credit cards and car loan. This extra will go entirely towards the principal, and reduce the debt a lot faster.

Pay off the highest interest rate credit card (or loan) first.

It is also a good idea to pay extra principal on your house, to reduce the interest and increase the equity.

Sell the car and get a used one that costs less if you have to.

Destroy your credit cards and don't use them again, instead get a credit/debit card that pays interest and cash back for any charges. So you make money when using it instead of pay money.

2007-09-21 07:57:46 by j_A

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I have a bunch of hospital bills that really cost me in credit scores. I really want to try to consolidate it but I can't find anyone who does debt consolidation without credit card debt. Any suggestions?

Call the hospital and see if they have any programs that can help. Last month when I ended up in the ER with my gallbladder we got put on a payment plan where we only pay off $28 a month until the bill is gone. The surgeons office also worked out a plan where we actually only have to pay half of what the bill would have been (because my dingbat husband cancled our health insurance back in May *smacks head against wall*).

2008-08-26 14:15:15 by A B

I am really bad with paying bills and my credit has taken a hit these past couple years. I make enough money where I should be able to pay everything with no problem but for some reason I continue to struggle. Do you think a debt consolidation would be best for me and to help me improve my credit score? Does this really work?

Nope. Most charge insanely high fees and most don't work. You are only going to improve the situation by actually paying attention to your finances. If your situation is dire - try Dave Ramsey. He's hard core but his plan works - but only if you grow up and get serious.

2009-08-28 21:34:50 by blcross03