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10
What’s the best debt consolidation company or group to go with?
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I have one credit card with a $9,226 balance and another one around the same price. I was wondering what company is best for me to consolidate both these bills so that I can pay a low monthly fee and eliminate them.
Passive Income
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6 Comments
November 17th, 2009 at 10:45 am
you don’t want to go with a consolidation company. what you need is to talk to your creditors and arrange a lower payment plan. ask them if they can provide you a minimal credit card (like $500) then put away the large balance credit cards away and don’t sue them in the meantime. keep to your payments by having pre-arranged payments automatically debited from your account instead of mailing the payments monthly. If you have opportunities where you can pay additional amounts to the credit cards, do that. Now, for the minimal credit card that they provide for you, keep that in rotation…only using it when absolutely necessary and something that you can pay off come billing time. Meaning when that bill comes in, you have to pay it in full. A starter American Express is a sample of a credit card like that. You have no choice but to pay the amount due on the bill.
If you do decide to go with a consolidator you have to understand that it is badly reflected on your credit rating. Whether or not you are making payments on time, it is still a negative ranking when you ask for credit later on and is normally on your credit record for about 7 to 10 years. So when you buy a house or car or any other large item that requires credit, you will likely not get it or will likely need a guarantor to get it.
November 18th, 2009 at 3:09 am
None of them.
You end up paying them a fee, and their best advice is “don’t pay for 3 years, and then we’ll negotiate the balance down”.
You need to start budgeting your money, so that your money knows where to go.
Then you need to pay down these cards.
$18000 * 25% = $960.69 * 24 months.
———————————————————-
Here’s how you’re going to do it:
Every month, before you get your paycheck, you need to write down on paper where that money will go.
Here’s a sample budget for a single guy making $50,000/year income
Income: $3000/month ($50,000/yr before taxes)
401K contribution – Zero. (there’ll be plenty to save after you’ve paid off the debt)
$250 Food
$550 Rent
$10 Renter’s Insurance ($100/yr, saved over the year)
$55 Clothes
$300 Gasoline
$10 Oil Change (Every three months)
$15 Registration/car property tax ($160/yr)
$100 Car Maintenance (something will break, so save up)
$50 Insurance ($300 every 6 months)
$-0- Car Replacement (pay off the debts first)
$70 Electric Bill
$30 Water Bill
$60 Gas Bill
$105 Cable/Internet/Phone Bill
$40 Toiletries
$10 Hair Cut ($20 every two months)
$60 Cell Phone
$100 Entertainment
$1185 Debt Repayment. ($18,000 @ 25% = $1185 * 18 months)
November 20th, 2009 at 5:35 pm
Debt consolidation, also known as consumer credit counseling, is typically not much better than continuing to pay the creditors. Its no surprise that often debt consolidators work for the creditors.
If the debt is realy pinching your life and lifestyle changes cannot help you get them paid off rapidly then the option to consider (other than bankruptcy) is debt settlement.
Look for a company that has a good standing with the BBB.
With $20,000 debt you would pay about $11000 over 2-3 years with no interest. Call us up we can give you a free quote to meet your needs.
November 23rd, 2009 at 6:45 pm
There’s a good article at eHow on steps to take to begin tackling your debt. Take a look at it:
How to Stop Escalating Debt
It includes information on companies that can help you with debt consolidation and reduction.
You can also look here for tips on earning some extra cash online:
How to make money on the internet, scam-free
Lastly, here’s an interesting alternative to conventional lending…getting a “social networking” loan from Virgin Money (from the same folks who run Virgin Airlines):
Social Loans from Virgin Money
Hope these help.
November 25th, 2009 at 5:16 am
Debt Management and Credit Consolidation can both harm your credit. If you can afford to make a larger monthly payment I suggest you do this.
Ask your local bank or credit union if they can offer you a lower interest rate.
November 27th, 2009 at 9:19 pm
Hi,
I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here: