Question by Shawty: Debt consolidation or personal loans?
Has anyone ever had very high credit card debt and used a debt consolidation company or got a personal loan to help pay them off? Did it help you or did you end up paying for longer and more interest? I am trying to find the best way to help my husband get out of debt, from all the moves and stuff.

Best answer:

Answer by CatDad
1) Using personal loans to consolidate debt can be tricky. Many people quickly find themselves in twice as much debt as when they started….because it’s simply too tempting to start using all that newly available credit that was paid by the consolidation loan. If you get this type of loan, contact your credit card companies after the debt has been paid off by the loan and request voluntary credit limit reductions to under $ 500 to avoid the temptation of using all that newly available credit again.

2) Debt consolidation firms have you deliberately default on your credit cards to settle for less. When you use such a firm, the monthly payment you make is going towards their settlement fees and to build a settlement account. Their fees are taken out first. Your credit cards will not be paid and will go into complete default during this process, which ruins your credit rating. This is deliberate so that they can attempt settlements for 50%.

People signing up with debt settlement firms often have the mistaken impression that their creditors will gladly work with such companies..or that they are obligated to accept settlements. You can never predict how your creditors will respond..they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. If the process fails you can end up in a much worse financial situation.

3) Another option: NFCC is a non profit organization that was set up by the credit card industry to offer assistance to people who are struggling to pay their credit card debt…and who may by considering filing for bankruptcy. They can offer reduced payments and interest (but NOT settlements for less). http://www.nfcc.org

Know better? Leave your own answer in the comments!

Credit Repair Strategies Revealed – Learn The In Depth Credit Building Strategies

Discover How To Build Back A Good Credit Score & Get Out Of The Debt In The Shortest Time Possible!

Here is just a sneak peak at what you’ll learn in Credit Repair Strategies Revealed:

* How to Avoiding Bad Credit and Repair
* Avoiding Payday Loans for Credit Repair
* Building Credit and Stopping Creditors
* Credit Repair and Avoiding Court
* Credit Repair Collection Agency
* Options to Avoid in Credit Repair and Building
* Things You Need to Know About

List Price: $ 1.99

Price:

The Whole Truth About Grants, Loans, “Free” Credit Cards And Credit Repair

A report on The Whole Truth About Grants, Loans,
“Free” Credit Cards And Credit Repair.
A report on The Whole Truth About Grants, Loans,
“Free” Credit Cards And Credit Repair.

List Price: $ 0.99

Price:

Question by kkkkkkBb: Doea anyone know of a company that will give debt consolidation or home quity loans to people with bad credit?
My fiance and I have not great credit, but we make a decent amount money and are looking to consolidate debt so that we can get out of it! We have about $ 40k in equity in our house, and we will need about $ 30k to consolidate. We have a combined income of $ 77,000. we don’t care about the rate because anything will be better than paying 20-30% interests on about 8 different accouts. Help!

Best answer:

Answer by ElaineMT
I would check out Prosper.com or Zopa.com. They are community lenders – meaning that people pool their money together and grant loans to people (I think there is a maximum of $ 25,000 though) and pay interest based on their credit score and income. You have to pay the loan back though, it does appear on your credit bureau (so if you pay on time and pay the loan off, it appears as a good mark). And if you screw up, they will continue to hound you through collections, as they should. The difference is – and I like the idea personally – is that a real PERSON is loaning money to you (actually a whole bunch of real persons), not a faceless bank corporation. The person loaning the money is earning interest on their investment with each and every payment, so if you screw them, they won’t re-invest, and you could wind up screwing the whole idea of community lending.

Do some research on these companies, and look at finance companies as well, like Beneficial Finance. Do not, however, sign up for one of those loans that they “guarantee” you a loan if you send them up to six months payments first. (Generally an email or telephone offer that you “qualify for a loan!!!”) That’s a scam and you’ll never see your money again. Good luck.

Know better? Leave your own answer in the comments!

What You Can Do To Conquer Your Credit And Debt Problems – First Edition

Just because you are the one being pursued doesn’t mean that you don’t have a way to make the bill collectors have to do their own due diligence. Moreover there are ways to protect your assets from creditors and ways to clear debts without filing bankruptcy. If it does ultimately turn to that, there are things you should know about bankruptcy and this book delves into these facts as well. Answering the questions should I declare bankruptcy, when should I declare bankruptcy, what is the differ

List Price: $ 8.76

Price:

Article by Yvette Stokes

Debt Consolidation Principles

We often hear of debt consolidation, but what does it really mean? Debt consolidation is the sum of all your debt – totaled and payable to one place. By consolidating your debt in one location you are essentially making it easier to manage. Ideally, the place that you choose to consolidate your debt will have a low interest rate.

To get the lowest interest rate you must consider the lender. Remember the more risk a lender takes the higher the interest rate. With that in mind, consolidating debt on credit cards might not be the best solution. Credit cards often offer low introductory rates that spiral to higher rates within a year. If your debt consolidate repayment plan will exceed the time of the introductory period, consider that factor before using a credit card to consolidate your debt However, if you have an existing credit card with a low interest rate that you have not exceeded the credit limit – that credit card may be an option for you. Lower interest rate are usually granted when you use an asset as collateral. Therefore, a home equity loan or home equity line of credit is often a better choose verses a credit card.

Using a home equity loan to consolidate your debt has its benefits. One major benefit is the lower interest rate. Another benefit is that in the United States mortgage interest is tax deducible. These two reasons make using a home equity loan to consolidate your debt more attractive.

In short, whether you use a credit card or a home equity loan to consolidate your debt, consolidating your debt is a positive finance move. Ideally, you will want to get the lowest interest rate you can. Remember, you are consolidating your debt not creating more debt. With that being said, you should not be borrowing more than is needed to consolidate your debt.

About the Author

I have been providing revised and innovative data & information processing services since 1997. My client’s enjoy online and offline cost effective off-site solutions for their changing technology needs. I also have been blogging since 2007. Most of my articles are about Financial Matters, Internet Marketing, or Data related. You can visit my core site at YS Data

How To Finally Live Debt Free And Wealthy: The Shockingly True, Step-By-Step Journey From Crippling Debt And Homeless To Multi-Millionaire Entrepreneur

LIMITED TIME BONUS – SEE INSIDE FOR DETAILS!
Discover How To Legally Eliminate Up To 81% Of Your Debt Almost Instantly WITHOUT Bankruptcy!

Would you like to really get out of debt and finally be on the road to complete
financial freedom?

Would you like to eliminate all your credit card, car and house payments in
5 – 7 years WITHOUT bankruptcy using only the money you already make?

Sound impossible? Well it’s not…

Inside this shockingly true account: “How

List Price: $ 0.99

Price:

Article by W Sugg

When people get in credit card debt trouble they are looking for effective ways to actually consolidate credit card debt. The main goal when you are trying to get your debt under control should be to lower your monthly payments, lower the interest rate you are currently paying, and get yourself out of debt more quickly. So when you are looking for options to consolidate your debt make sure the decision you make actually helps you get out of debt and does not make the situation worse. Here are two very effective ways to consolidate your credit card debt.

If you are a homeowner one of the best ways to get your credit card debt consolidated is by taking a home equity loan. These loans let you borrow against the equity that you have built into your home and are easier to get then unsecured loans. When you ask about this type of loan make sure you ask about getting a fixed interest rate. What this will allow you to do is payoff all your high interest credit cards and you will have one monthly payment at a fixed amount with a fixed interest rate.

Using a credit card with a higher credit limit and lower interest rate is also a way to get your credit card debt consolidated. What many consumers do is wait until one of their credit card companies offers a great balance transfer rate. These rates are usually anywhere from 0% to 3.99% and they last for a predetermined time which is set by the company. This is effective if you can pay the balance off before the promotional rate ends. However, make sure that you read all the terms as there are usually fees associated with the transfer.

Just remember when you are looking at solutions that you understand the fees that are usually associated with this type of help but in the long run your financial situation will improve when you find and effective way to consolidate credit card debt.

About the Author

For practical help, advice and information on how to effectively manage credit card debt, please visit our website, http://www.managecreditcarddebt.info

Article by Kuntal Mehta

If you’re just living paycheck to paycheck, paying the minimum due on your credit cards, debt consolidation may be the boon for you.

Debt consolidation loans are personal loans that allow you to combine many debts into one monthly payment. Your monthly payment will be smaller than the total amount you were paying before. However, it will take longer to pay off all the debts. The interest rates may be high, depending on your past credit history.

There are two types of personal debt consolidation loans, secured and unsecured. An unsecured loan is basically just a promise to pay back the money borrowed. A secured loan means you put up something for collateral. If you don’t pay back the money, the lender can repossess that collateral. For instance, if you put your house up for collateral and you fail to make payments, you can lose your home.

If you have a mortgage, you can use that to consolidate your debt. You can consolidate your outstanding debt into a new first mortgage or you can take out a second mortgage. If you are unable to keep up with the payments, though, you risk losing your home.

You can also apply for a home equity loan. This is a loan based on the value of your home. If you still owe on your mortgage, the equity is the difference between the value of your house and the amount you still owe. With a home equity loan, you are using your home as collateral. Here too, there are chances that you may loose your house, if you don’t pay.The advantages and disadvantages to both a second mortgage and a home equity loan are similar to that of a personal debt consolidation loan. However, the interest rates are usually better.

If your credit is poor, if you’ve been late in making payments on credit cards, or even if you’ve filed bankruptcy, you may still qualify for a debt consolidation loan or for a second mortgage on your home. Don’t be afraid of applying because of bad credit.

Yet another way to consolidate your debt is to work with a consumer credit counseling agency, also known as debt consolidation services. These agencies work out payment arrangements with your credit card companies. They then combine all of your monthly payments into one payment. Debt consolidation services usually get paid by the credit card companies for collecting your money, but some also charge consumers a fee. To find debt consolidation services agencies, type “debt consolidation company USA” into Google or any other search engine.

There are some debts that usually can’t be included in personal debt consolidation loans, second mortgages, or home equity loans. These include things like student loans, money owed to the IRS, and child support. These usually are not included in arrangements made by consumer credit counseling agencies, either.

As you can see, there are a number of options for consolidating your debt. You’ll need to investigate them carefully to see which one is right for you. In some cases, debt consolidation may not be enough and the best choice may be to file bankruptcy. Talk to an attorney to find out more about that.

About the Author

KJ specializes in helping homeowners receive competitive home loan quotes.For a free Mortgage Refinancing Advice and Quotes and to find the best mortgage rates visit http://www.homeandfamilybills.com

What You can Do to Conquer Your Credit and Debt Problems

Book Review: By M. Gregory (Miami, Fl United States) “With the credit crunch that is affecting just about everyone (irrespective of our geographic location), it is good to have a practical book that can guide us through our credit problems. I am blown away by the openess and honesty of this author. Not many individuals are willing to say that they had financial problems and that is what did it for me with this book. I find that too many books on credit problems are fi

List Price: $ 9.95

Price: