debt consolidation?

[ByRoN]

who has done this and how? i am looking to have just one payment instead of five!

[Rado]

Re: debt consolidation?

I've never done this nor do I need to do it. It will ruin your credit in the start. They close all accounts, put a note on your credit report saying that you're on a credit management program(you wont be able to get credit) and the only thing good about it, is one payment.

Unless you're in debt so much, I would just make more of an effort to double payments. Didn't you just take a loan on the ring for your GF

The reason I know about this is because my good friend owns a business like that here in Miami. Don't get wrong, they can help you lowering payments to 1. But in the end, you'll only hurt yourself and creditors will only look at you as not being able to be responsible and it will only make it harder for you to get credit later.

You're better off going to a financial advisor(depending on how much asset's you have, if any) and having them lay out a plan for you. I only have 2 credit cards on me(BLUE-Amex & Discover), other than that. I have no need for other credit cards, I use my check card from Bank of America.

I never understood why people get department store cards, jewelry cards, etc...If you have 1 or 2 credit cards, why get more

Remember this; Credit cards is money you don't have. If you can't budget yourself, close them all. I give myself an allowance of $50 a week(not including dinners or going out) and that's what I have to use to buy anything I want.

I also put away on my 401K every two weeks I get paid. Not including other CD's I have from myself and my family. If you don't manage your money at a young age, you'll be fucked by the time your 40yrs old. I'm excellent when it comes to buying or putting money away. If you don't have the money in the bank, DON'T SPEND A DIME !!!

[Rado]

Re: debt consolidation?

Shit; I just read my post and I typed so fast I left out some words..lol...I sound like a dumbass

[Fit2bLarge]

Re: debt consolidation?

is it your credit or yours and gf? you should apply for a 0 apr credit card with high enough credit to cover all your debt. talk to your bank. if you've banked with them long enough, and you're not in default of any payments, they should help you out. getting your credit report before you do this is probably a good idea. you'll be better prepared. amex blue is a great card to have and it offers 15months of 0 apr. if you dont think you can pay off your debt in 15months, then get a personal loan. make sure the apr is less than your combined debt apr. its better to consolidate than default on even just one card.

[Skarhead]

Re: debt consolidation?

agree with rado... and live within your means byron, i know lots of people in debt a lot of times it ends up people getting divorced over financial trouble

[T-Man007]

Re: debt consolidation?

DO NOT DO DEBT CONSOLIDATION!!!!!!

Trust me, I not only do Real Estate Appraisals but mortgages as well and debt consolidation kills your credit. Believe it or not, DC is worse on your credit score than a bankruptcy. It makes absolutely no sense, but that's how it works. I have seen someone finalize a bankrupcy and the next day (literally) get a home loan. However, the person who says 'I just want to pay off my bills but can't afford to' is hit much much harder. The most sensible way to pay off debt is with equity in your house. However, I have suggestions with that. First off, never ever max yourself out 100% on your home. If life does a 180 on you and you need to sale your home, you will be phuked because Realtors charge 6%, or more. My personal rule of thumb is to never owe more than 90% against your home. Preferrably, stay below 80% to get a better rate. The reason why consolidating yoru debt into your home loan is because the payment will usually be lower and the interest is tax deductible. Now, for me, it makes no sense. The lowest fixed 2nd mortgage is usually around 10-12% and my cards and cars are lower than 10%. I could probably save some $$ monthly, but I like the fact I have 20% equity in my house. If my world turned upside down I could get a heloc and survive for over half a year just on my equity. Of course, I would not allow myself to stay down that long so it's a preventative measure. I also have a CC with no balance, just in case of an emergency.

Besides your mortgage, what debt do you have? I have found the best way to tackle it is to pick one item, car, loan, CC, whatever and pay double or triple the payment. Once that item is paid off, you take all the $$ you were paying to that item and add it to the payment you are paying on another item. This is not a quick fix, but it will get you debt free is a fee years. There is no need to rush this, you are young and this will be a great way for you to develope discipline with money, and trust me, you will need it when you tie the knot. I only wish my parents had taught me about money. I have had to self teach myself. I'm way ahead of the game compared to most of my friends. I've already got enough $$ in an account for my son that if I never put another dollar in he would be very well off at 65. However, I want his to be very very well off before he turns 50. So, I invest now while he's only 2 years old. Before he even comprehends money he will be well beyond any of his peers. I don't want my son to have to worry about his retirement, I want him to enjoy investing my his son's retirement. It's so much easier to save when you want to that when you have to.

[supasaiyan99]

Re: debt consolidation?

Listen to everyone here. I did it and regret it. They screwed me up big time. You send them the money and they are supposed to pay your creditors. Well the company I went with did not make any payments to my creditors. I ended with lots of late fees. I was with them for only 3 months and I had to cancel out of the program because they were not handling everything like they said they would. But anyways I just started paying off one card at a time. I had 5 cards like you do. As soon as I paid one off I would add that payment to one of the other cards. Once I had two cards out of the way I then added those two payments to pay off the third card and so forth and so on. Believe it or not in 5 months I was able to clear my debt while the debt consolidation agency would have taken 2 years. You just have to make some sacrifices like not going out to expensive restaurants and maybe not buying supplements and such. But yeah definitely stay away from Debt Consolidation. It's not going to help you at all!

[daved150]

Re: debt consolidation?

bro...listen to rado and t-man...there right!! do not do it. explore other options!!

[LilFella]

Re: debt consolidation?

what they said. dont do it.

[Rado]

Re: debt consolidation?

[mick-G]

Re: debt consolidation?

I pay for everthing with cash, lol I have two credit cards Amex Platinum, and Capitol One Visa. I sometimes use Amex on large items, because i get cash back. I have absolutely 0 debt. My house is paid for, my cars are paid for and i don't owe anything on credit as i pay my cards off each month. One thing i see many young ppl doing is spending over their means. If they want something it has to be "now" or they have no budget. It is very easy to get into debt, especially if a person is in a realtionship where both parties don't agree on the spending part. If one partner is a spend thrift and the other conservative, it can make efforts to save futile. ByRon, i would just try to make a hard effort to save more so you can put more money towards your debts and not get anymore debt till everthing is paid off. I would also talk about money/saving and spending with your new fiancee'. This is something that needs to be approched before marriage, so you know you are both on the same track. I was never one for seperate accounts banking etc, because when you are married everthing is combined and both of you are working towards your goals that you have set for yourselves. My wife actually shops that the thrift stores, and is not real high maintenance. This to me is the only way you get get ahead in the long-term. Any extra monies should be put into investment. Believe it or not money can work for you. If you have enough it will multiply. You can not depend on pension, ssi, retirement nowdays. Alot of ppl don't understand you have to save when you are young or you will miss the starting gun and before you know it you'll be 50yr and still struggling on a fixed income. Be smart and be dedicated ByRon. Take a % of your income and invest it and never touch it. You would be suprised when you are 50-60yrs old how much you will have.

[T-Man007]

Re: debt consolidation?

^^ very good advice. The earlier you start the better it is. I am 33 and wished I started 10 years ago, but I didn't think like I do now. I know have to make up for lost time and save more than I want to but my goals are long term, not short. I could care less about fancy cars or plasma tvs. I want to be where Mick is and I can't get there if I don't save. That plasma tv my be great now, but do you have any idea what that $3,000 will be worth in 30 years if you invest it now? A lot! That's how I think now. If I have $1,000 extra at the end of the month I pay about half to CC's and the other half to savings (investments and savings account). Sure, I could go buy some really cool stuff now, or I can buy what ever I want in 30 years without regret. I'll take the 30 year plan. Everyday I see senoirs who are on fixed incomes, no freakin way! I'm not going to be that person.