Finance

Question: Anyone know of good finance company to do debt consolidation?

(Posted by: hopeful on 2009-07-02 18:49:59)

I have been at my job over 5 yrs and i have app 20000- 25000 in equity in my home, but my credit score is probably around 450 from where my husband was unemployed for few months now he is a sub contract tuck driver need to be able to breathe little easier scraping everything together not to be late anymore

Posted by: JOHN D on 2009-07-06, 11:48:38

Hello, Hopeful!! :D From an equity standpoint you are in a good position. Yes, your credit score could use improving, but there are companies that work on your behalf to do just that. In regards to your question about debt consolidation, this is a good way to improve your debt situation. Debt settlement and debt consolidation both offer ways of reducing your debt. Debt settlement eliminates your debt, while debt consolidation reduces interest rates. While debt consolidation might work for some, there are cases when debt settlement is a better option. The goal of both debt settlement and debt consolidation is to lower your debt. Debt settlement companies negotiate with your creditors to reduce the amount of your loans. Debt settlement can reduce your debt 10% to 50%. To get the most out of the program, pay off the rest of your debt as soon as possible. Also, close accounts that you don’t plan on using to raise your credit score. Debt consolidation pays off your high interest debts with a low interest loan. Home equity loans provide the lowest rates, but personal loans can also be used. With rates lower on your debt, you can pay off the principal sooner by making the same monthly payments. Credit Score Implications Both debt settlement and debt consolidation will have a slight impact on your credit score. Since your debt isn’t actually increasing, you will only be hit for opening another account. By closing your paid off accounts, you can partially offset the penalty. In a short period though, you will be in good credit standing if you remain fiscally responsible. No one financial choice fits everyone’s needs. While debt consolidation might work for some, debt settlement might work better for others. In extreme cases, debt settlement can help to avoid bankruptcy. And if you need additional advice, talk to a credit counselor who can take a look at your finances and offer suggestions. You can learn more with the resources below. Good luck!! :D

Posted by: bearr41 on 2009-07-02, 18:56:03

Well, sticking all of your debts together will not reduce your debt any. It will just open your credit cards up so you can charge them up again. Instead, why not pay them off? Just call all of them and try to reduce your rates and payments, then make the minimum on all except the one with the lowest balance. Put EVERY extra penny into that until you pay it off, then apply what you were paying that debt to the next smallest balance until it is paid off. First, REDUCE your spending. Get rid of cable, cell phones, car payments, etc. Start living on LESS than you make. OR, make more than you spend - get a second job. Better yet, do all of these things.

Posted by: Zoe S on 2009-07-03, 06:00:04

Debt consolidation can be a great way to start tackling your debt – whether it’s just lowering your rates, getting a better loan, or cutting your payments to get debt free faster. Debt consolidation loans consolidates multiple lines into one new loan or debt consolidation program - it typically involves a debt consolidation loan, but could also be referred to as a credit counseling program or other forms of debt resolution that do not involve a new loan. It is important that you know what your options are and what your goals are before choosing a debt consolidation program or company. I think you can easily get a Home Equity Loan to consolidate all your debts. I also was in deep debts last year and I took help of Bills.Com to consolidate my credit card debts, now I am almost debt free. I am happy with their service and recommend you go for them.

Posted by: sburtonhome on 2009-07-03, 19:06:57

Most experts would NOT recommend using home equity to payoff credit card debt. On the surface it sounds like a good idea right? Lower my monthly payments but lowering the interest rates I am paying. The real problem is that credit card debt is "unsecured " debt while your home is "secured " debt (thus the difference in interest rate). Unsecured debt such as credit card debt is much easier to negotiate because it can be discharged in bankruptcy while secured debt is only discharged by liquidating the asset. So when you use your home 's equity to payoff credit cards you run the risk of losing your home if you default on that added debt. There are several options that are safer and easier: 1) Debt settlement. This is when you negotiate down the balances 40-60% owed on your unsecured debt and payoff the lower amounts over a 24-36 month period. The downsides to Debt settlement are that it will hurt your credit (which may not be too damaging in your case since your credit score is already low) and that it will increase creditor harrassment. 2) Credit counseling. This is when a counselor (often paid by the creditor) helps you to negotiate a lower interest rate on your unsecured debt. The downsides to credit counseling is that it also will hurt your credit and it will not likely significantly reduce your payments since you will still be obligated to pay the entire balance. 3) Chapter 7 or 13 bankruptcy. This should only be considered as a last resort after carefully discussing this option with an attorney. Good luck!