Looking to consolidate credit cards... need advice

So I have accumulated quite a bit... not an astronomical amount but enough that I want to pay 1 large amount per month instead of some here so there ... and so on... for those of you who have done this... did you do itthrough your bank and just get a loan or did you go through a debt consolidator.

Not sure what the deal is with debt consolidators... does it look bad on your credit.. do they thry n scam rip u off??

TIA!!

Re: Looking to consolidate credit cards... need advice

I'd look at 3 things:

1 - if you have own your home consider an equity loan to consolidate as you suggest. If not, I would consider a personal loan - shop around for the best rates.

2 - if you think you can use a little help connect with the not for profit NFCC for help.

3 - I used and believe in Oprah's Debt Diet - take a look
online

Good luck to you!

Re: Looking to consolidate credit cards... need advice

My best suggestion... Do your research, buy the book by Suzie Orman "Young, Fabulous and Broke". I was recenly in a lot of debt and read the book along w/ listening to the audio version. It was the best thing I could have done, it helped me from falling into one of those easy way out scams. It will teach you about every aspect of your financial well being and its not as boring as it sounds

Re: Looking to consolidate credit cards... need advice

A general rule is to STAY AWAY from debt consolidation companies.

They do things you can do, for the most part, by yourself.

And there are enough horror stories about these companies taking your money and not paying the bills, making it worse, ruining your credit....

You should also look into Dave Ramsey and how he teaches people to get out of debt.

Re: Looking to consolidate credit cards... need advice

There are various types of loans that could act as credit card debt consolidation loans for you. For example:

- Home equity loan
- Zero APR balance transfer
- Bank loans

Credit cards debts not only give you a tough time but can also ruin your credit scores in the long run. Thus it is advised to close these debts as soon as possible.

Here is a link that might be useful:
Credit Card Debt Consolidation Loans - How They Help You Get Out of Debt Trap

Best Regards,

Theresa

Re: Looking to consolidate credit cards... need advice

About 7 years ago, I used CESI with no problems and it did not have a negative effect at all. My credit score is over 800 now.

Re: Looking to consolidate credit cards... need advice

DO NOT use a debt consolidation company! This will absolutely ruin your credit.

My DH and I are in a similar situation and were thinking about taking out a personal loan to pay off our debt, but after we thought long and hard about it... we decided against it. My WORST fear is to take out this money to pay off my debt, then something going wrong and racking up my credit cards again. You never know what the future holds, especially in this economy.

I would call your CC companies and have them lower your interest rates and do it the old-fashioned way. Suzie Orman books are also VERY helpful when trying to eliminate debt.

HTH!!

Re: Looking to consolidate credit cards... need advice

wow..i was seriously going to post this this morning b/c DH and I are looking to consolidate a large amount of debt.

we are going to try to refinance our mortgage but we would rather lower our payment/interest rate than to get money out of equity.

Re: Looking to consolidate credit cards... need advice

Debt Snowball Plan! I believe it's Dave Ramsey's concept and it worked wonders for me. We are now credit card debt free, something I thought I'd never be able to say.

Personally, I'd avoid debt consolidation companies or taking out a loan, especially against your house.

Re: Looking to consolidate credit cards... need advice

Re: Looking to consolidate credit cards... need advice

Re: Looking to consolidate credit cards... need advice

consolidation- means you take out a loan to pay them off- the only real way to do this is to refi your house

or a personal loan

not a great idea

settlement- when you are already LATE and you settle the balances for less then you owe

or you can do what I did- it invloves closing the cards- but if you have a decent amount of debt...who cares

I called up every company- I told them why I was having a hard time (NOT LATE) and I was able to get myself into "hardship" programs

example- BOA - Balance $10k
payment $180 a month for 5 years

rate change- 17.99%- 5%

balance will be paid in full in 5 years

I did this over and over

some are 0%, some are 5% none of over 10%

I have paid off 48% of my debt in less then 18 months -

37% in 1 year...since July 1 of last year (yes I track this...it's a great sense of accomplishment)

and my debt was HUGE and still is but I am moving thru it very rapidly

Re: Looking to consolidate credit cards... need advice

I would NOT go through a consolidation company.

I would go through a Bank. Unfortunately most unsecured loans are offered at high interest rates, especially if you use a commercial bank. I would look into what loans a credit union has to offer. Taking a bank loan will not hurt your credit.

TFCU has a personal line of credit (L28, not HELOC) that is offered at 8%variable. The line goes up to 20,000. It's a good product. I suggest going there if you have a branch in your area.

Re: Looking to consolidate credit cards... need advice

Re: Looking to consolidate credit cards... need advice

Posted by Maria31

Posted by debsabourin13

Posted by Maria31

I would call your CC companies and have them lower your interest rates and do it the old-fashioned way. Suzie Orman books are also VERY helpful when trying to eliminate debt.

Good luck with THAT one...I know people say you can do this but no matter HOW many times I call my Credit card companies they always tell me that the rate I have is the best they can do for me...even when I tell them that I have another credit card with a lower rate....it is ridiculous...I have never been late and they STILL wont do anything...I just have to pay them off and move on.

Really?? I've always had luck with this. I just won't accept no for an answer and won't let them get off the phone until they do something for me. If you are persistant enough.. they will do something. Threatening to close the account usually works!

Re: Looking to consolidate credit cards... need advice

I would definitely avoid debt consolidators and only use that as a last resort once you have thoroughly explored all your other options. I found that when I was in debt and had several credit cards, when I threatened to close my account and asked to speak with a supervisor(bc generally the person you initially speak to does not have the authority to do this) they will lower your interest rate. This is absolutely worth a shot. If you don't want to threaten to close the account and be put on the spot, tell them you came across a great balance transfer offer and are going to go that route and then close the acct if they aren't willing to work with you.

What was my saving grace, and also made me feel like there was a light at the end of the tunnel every single month, was Dave Ramsey's Snowball method. On his plan, you pay the most you can on the CC that has the LOWEST balance on it and then the minimum payment on all the others. Most people typically pay the most to the card that has the highest interest rate. His theory is that if you tackle one thing at a time, and the one that has the least amount, you will see quick results and it will motivate you to stick with the plan and give you the confidence you need to know that you can tackle your debt. I cant say enough about this plan. I felt like no matter how much I paid, I wasn't getting anywhere. The results really made me feel pumped and made me realize it wasn't completely about what you see on paper, but also giving you the motivation to stick with it and take control of it mentally so that you actually see a way out. It took 2 years, but it got me debt free when nothing else worked for me.

Good Luck!

Re: Looking to consolidate credit cards... need advice