Comments on: Debt Consolidation?

By: jwizzo25

jwizzo25 — Fri, 24 Jul 2009 08:23:34 +0000

Try using:

I used their service a couple months back and they consolidated all my debt and lowered my total debt about 25%.

By: Shelby n

Shelby n — Wed, 22 Jul 2009 17:41:48 +0000

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!

I’ve found some good information here too…

Good Luck.

By: peopleshelp

peopleshelp — Wed, 22 Jul 2009 04:56:05 +0000

They simply talk to lenders and lower your debt .. This way works for some peoples not for everyone .

By: Debt Is Dumb

Debt Is Dumb — Tue, 21 Jul 2009 07:29:48 +0000

Stay away from Debt CON-solidation loans. They CON you into thinking that your financial stress is over, so you do not address the behavior that got you into trouble in the first place.

Under no circumstances do you 2nd mortgage your home of get a Home Equity Loan. Doing so puts your home at risk. When you don’t change your behavior and tun your debt up again, then what? Foreclosure, that’s what.

To change your behavior and avoid this situation in the future, you must live on a written budget every month. You can get a really good budget template at.

I will also recommend taking his Financial Peace University class. I did about 4 years ago and applied the lessons learned with dramatic effect. He is not a get-rich-quick scam. He just has a practical, spiritually healthy plan that will allow you to throw off the yoke of financial slavery.

Good luck

By: David B

David B — Sat, 18 Jul 2009 23:47:36 +0000

Debt consolidation is where you basically get a loan to cover all your debts at a lower interest. You then pay all of your debts with the loan, and now you’re just left with the one loan.

The downside with debt consolidation is your credit score. Your credit score is dependent on a variety of factors, which includes how old your loan accounts are. For example, if you’ve had your student loan payments for 6 years, you have a higher score since you have a long credit history, and it shows that you have been paying on time every month. With debt consolidation, you wipe alot of your loans, and now you’re left with a new loan. The new loan means that you just opened a new credit line recently, so your credit history takes another hit. The debt/credit history is also high (instead of 5 accounts of $1,000 each, you now have 1 account of $5,000, and you haven’t paid much of it off yet).

The benefit of using debt consolidation is that high-interest accounts are wiped, thus you save money. If you plan on using your credit soon, such as buying a car or house, you’ll want to stay away from debt consolidation until after you buy it.

Check with finance companies and banks to see if they offer debt consolidation. My student loan company (salliemae.com) is constantly offering it to me, but I like my 10 year student loans showing on time payment for the entire 10 years. I pay higher interest rates, but my credit score is excellent. Also, my student loans have loan benefits. I got a 2% interest reduction after 2 years of on time payments. Wiping my student loans means I lose this benefit.

Be careful, alot of these debt consolidation companies are out there to make a profit. Some may charge you higher interest rates and explain it away by saying you’d be closing delinquent accounts. If you’re going to be closing delinquent accounts, be sure you’re doing so by opening a loan that helps you, not hurts you.

By: latachia_2

latachia_2 — Thu, 16 Jul 2009 17:31:56 +0000

It depends. Those companies that advertise on TV are no good. The best thing to do would be to get a loan from a bank or at worst a finance company.

By: sullie812

sullie812 — Mon, 13 Jul 2009 20:35:03 +0000

You get a loan to consolidate the debt. The type of loan you get will make a big difference!!! I would not do a line of credit!! That’s just as bad as a credit card. The rates are really bad on a line of credit too.. get a loan or a 2nd mortgage if you can. The 2nd mortgage is the best way to go if you ask me b/c you will get the BEST rate and in a lot of cases you can claim the interest on your taxes. Make sure you shop around for rates! The point is to get a great rate that will save you money. Try lending tree, I have used them before and it’s a great way to get multiple offers.

By: Windseeker_1

Windseeker_1 — Sat, 11 Jul 2009 03:51:09 +0000

Not everyone can and or not everyone is in debt. If you do consolidate I would suggest that you cut up all your CC’s and concentrate solely on paying off your debt. At the same time learn how to save money for different things starting with saving enough money to pay for 3 months worth of bills (in case you get injured or lose your job). You also want to save money to buy things that you previously bought on credit. The only things you should be buying on credit are a vehicle or a home. If you can’t save enough to buy other things like a new T.V. , stereo or any other luxury item including expensive clothes you can’t afford it.

By: Chelsea

Chelsea — Fri, 10 Jul 2009 10:10:39 +0000

I just did this through my bank with a line of credit. Some consolidation companies are scams…make sure you are getting a decent rate. You have to have good credit to get a line of credit. Lately they have upped the criteria. My credit is very good (not excellent) and I was barely approved. I highly recommend this if you have high interest debt and you use a reputable company.