Credit Card Debt Consolidation and How To Eliminate Debt
November 11th, 2009 | 
Author: Credit Card Debt Consolidation
Credit Card Debt Consolidation services can make it happen, and there’s no doubt about it. There’s no reason to delay and nothing to lose. Credit card debt consolidation can also help you avoid creditor harassment , one of the main elements that trigger stress induced health problems. Credit card debt consolidation usually makes the combined balance more manageable especially if a lower interest rate is provided. But, if there are multiple other accounts involved that were not part of the consolidating effort, it may take some time to get them all reduced to a manageable level.
Typically, when a customer buys a product with his card or uses his card as an alternative for hard cash, he is offered an interest free credit period. The customer has to make a payment for the credit used on the card before the credit period ends. Typically, debt consolidation programs are debt repayment programs. They can consolidate most types of unsecured debts from major credit cards to personal and student loans. Typically the interest on a debt consolidation loan is approximately 17-23%. That?s a hefty amount of interest that may actually be more than you are currently paying on your debt.
Bad credit debt consolidation is helpful if you want to reduce your debt burden. It is an effective technique for improving your credit scores. Bad credit and excessive debt does not make you a horrible person. With a little help from us, you will be able to get your credit and finances in top shape again. Bad Credit Personal Loans – Our company’s mission is to help people obtain the bad credit personal loans they so desperately need. We’ve helped thousands of people with credit problems find the right personal loan that meets their needs.
Credit Card debt consolidation is a short term answer to a much broader problem. Credit card debt consolidation is an agenda where the debt settlement company directs the debtors in reducing their debts through a monthly compensation of a fixed amount. Debt elimination is not similar to a loan program. Credit card debt consolidation gives you an opportunity to reduce your debts under single lower monthly payments. Thus you get rid of all high rate credit card debts and replace them with the new low monthly payments.
Watch the video related to unsecured debt consolidation
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Where can I get a good low interest personal loan(unsecured) for debt consolidation?I need to pay off like 5 credit cards,and 2 personal loans. I am just trying to put it all together and lower my monthly payment. Please help me with this.I have pretty good credit i guess but alot of inquiries because 2 car dealerships shotgunned my credit report around.
Please no more scammers trting to give me a loan. Just wanted to know some legit loan company's that would work with someone
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They can be very helpful just be sure that they are not for profit companies. Also check the Better Business Bureau for the one you pick before signing anything with them.
Whoever you deal with, always see if they have BBB and Verisign logos on their main forms.
These should be *working* logos, linking back to BBB and Verisign sites. It's a very simple practice to go by.
Once you check these simple points, you know they are not scammers.
These are also good, depending on your location:
http://www.debtreliefprogram.esuperfind.com?id=nth no magic solutions, when possible you simply end up paying LESS interests, or lower monthly payments, depending on your situation.
A bank.
That's a tough spot to be in, ma'am.
Ok, start by cutting up your credit cards. This will eliminate anymore spending on them and their high interest rates. Keep looking for that job or consider starting up a small business doing anything. Just remember to do something, even if it is wrong, the action is what is important.
With that much debt you NEED to start a budget if you have not. Cut every expense that is not absolutely necessary, you have got to run a tight ship to pull through in tact.
Pay off your credit cards first, but be sure not to neglect your other debts. So continue your minimum payments! Your credit cards likely have the highest interest rates so they will kill you the fastest. Take every spare penny you can pinch and pay down that principle.
Then you will want to pay off your boyfriend (and thank him for understanding and being patient). Pay him whatever payment you have been + whatever your credit card payments were (plus anything extra that is coming in). An alternative strategy to pay him and your Dad off first and then go to the credit card, but my preference would be to pay the CC because your boyfriend and Dad would likely be more understanding than the Credit Card company. Use your own judgment!
Pay off you Dad with the payments you have been making to your boyfriend and any extra cash.
Now pay off the Student loans. Continue the snowballing and keep attacking that principle! Slow and steady wins the race.
Ohhh, one last thought. There is a lot of money to be made part-time in the homade bread business. Lots of people will pay rather massive markups (.99 or less to make, sells for 5+ bucks). Everyone I know sells for at least $5 and actually sell the most at the 7.50 amount.
Kick that Debt!
Hey there – I feel your pain, but my answer is no. They will charge you a percentage of what you owe, and it affects your credit report when they start bargaining with the credit card companies. (I worked for Experian for 7 years.) Plus, there's no guarantee they can do anything to consolidate to something you can afford – trust me on that one. I've seen it a 1,000 times.
What you can do is bargain with them yourself. Call them up and ask to have your rate lowered for a specific amount of time, which will allow you to 'catch up' and save a bit of money. Then, when it goes back to the normal rate, you'll be able to put some extra money toward your monthly payments which will eventually help your credit report and in the long run save you money.
Basically, and I hate to say it, you're in the same boat as the rest of America. Be glad you don't have my $50K in student loans on top of $9K in credit card debt. Good luck, and really, please don't be fooled by those companies… You'll regret it.
all i have heard on answers are nightmare stories — my advise to you is run not walk away from any of these companies!!! example they will tell you to not pay your bills which in turn will make the credit cards companies post all kind of true but awful remarks in you credit report which will lower your score lower than a snakes belly and than the company will try to settle with the credit card company and all the time you are pouring money into them so they can destroyed your credit!!!
I'd do a lot of research before you enter into a contract with a CCCS because while it might get the bills paid – it will not protect your credit score or rating any better than dealing with it yourself. You don't state what your income is and if buckling down and paying more each month on your cards would get it paid off. I had $40k of debt, $30k being CC debt and drowning in it having been through a messy, expensive divorce. When my attorney did the calculations, he figured it would have taken me 40 years to pay off the $30k of CC debt at the rate I was going.
So I wound up filing a Chapter 7 BK and it wiped out 100% of the CC debt legally in about 3-4 month's time (from the date of filing until discharge date).
The other $10k was a car loan, which I continued to pay on 'as agreed', did NOT reaffirm the loan, and they did not come and take my car. I paid it off back in April and now it has a clean title.
No ~~~BK is not for everyone, but it sounds like you have a lot of debt and a little one to take care and his future to think of. And while going through a BK will trash your credit/score, it's no more so than muddling through years of dealing with collection agencies, some CCCS that will likely "fail" you.. and creditors that will STILL report you even those you are in a payment plan. Or you can wipe out the debt legally through a chapter 7, start fresh and be able to SLEEP at night.
You can get a free consult with most any BK lawyer and he or she will go over all of your debts, your income and help you decide the best course of action.
I have BEEN THERE and done it and this is not an "ad" for anything,but a testimonial. While it wasn't something I really wanted to do .. BK was the best solution for me during a really tough time in my life. I am not sorry I did it.
Hope this helps. Ignore the jerks that can't even give sensible or helpful answers and just bash you. It's clear they've never walked in your shoes.
Neither the Debt Elimination company or the Debt Consolidation company have any control over what is on your credit reports. That information is controlled by the credit reporting agencies. All the company can do is report paid/not paid/collection/judgment/etc. Your history is just that , your history. Companies who tell you that they can change it are not telling the actual story, in my opinion. The only way to clear up your credit history is to start paying all of your bills on time. The bad reports will "fall off" you reports over time. First you need to stop spending money that you don't have. Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another. The wife too. When my kids were small, I worked at night to bring in extra money so that I would still be there for them during the day.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn't as hard as you think. Just follow the plan.
Given the vehicle loans tend to have fairly low interest rates to start, I'm not sure I'd touch them unless you can really lower your rate.
Now you don't state if you own your own home or rent so it is difficult to suggest how to proceed with the credit card debt. At a minimum, try calling the credit card companies and ask them to reduce your interest rate. If you've been consistent with your payments, some will work to reduce it to a fairly low rate. You just need to ask them.
My wife and I also worked our way out of debt (although not quite as high a balance) through a credit counseling service (Consumer Credit Counseling Service – a free service that helped work out a repayment plan for us, since we weren't making enough to get out of debt and struggling to make payments). You may want to check out options like this. They aren't just for people unable to pay their debt.
Do you need to check the legitimacy of a company that cold calls you out of the blue with an offer that sounds to good to be true?
If your seriously in trouble, you can call your credit card company for free, they most likely will be willing to work with you to set up a payment plan, reduce interest, or in some cases, they may offer to forgive part of your debt after you pay off part of it. They would much rather write off half your debt than all your debt.
The best way to get rid of debt is to pay it off. The only time debt consolidation makes any sense is when you can do so by getting a lower interest rate and paying off all the other debt. Unfortunately most people who do debt consolidation see that their credit cards are free and clear again and go back to running up debt on them and then have the credit card debt and the debt consolidation debt. The help you need is to stop your reckless spending. Can you?
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.
It may not be a wise decision to consolidate all those debts. Whether or not to include the two vehicle loans and the two personal loans will depend partly on how long is left on them and how much interest you're paying.
If you refinance them with a consolidation loan, you're going to be starting back at payment #1 and could wind up paying more in the long run, even if the interest rate and monthly payment are both lower.
eg. If you're a year into a 3 year car loan, and you refinance it with a 4 or 5 year debt consolidation loan, you'll end up making vehicle payments for 5 or 6 years in total. Same goes for the personal loans.
And the interest rate may not be much different or could even be higher on the consolidation loan, depending on the figures on your original loans.
As for the credit card debt, it might be a good choice to consolidate it through your bank, but it will again depend on the terms of the loan and whether or not you need to provide security.
If you take out a consolidation loan secured with your home equity, your home could potentially be at risk if you ever defaulted on that loan for any reason. If you're absolutely certain you can continue to make the payments with no problem, even if you were to lose your job or have some other kind of unexpected emergency, consolidating the credit cards will most likely help you pay them off faster and save money on interest.
But if you would be strapped to make the payments if something unexpected came up, the question to ask is whether it's worth the savings to put your home at risk.
I would suggest canceling the service ~ sounds like they are crooks ~ you could be using that $75 to pay off your debt right
My suggestion to you is to go with a Debt Management Program DMP (I'm in one) what they do is call your creditors negotiate lower interest, you get no late fees, no fees at all while in the program ~ they come up with one low monthly payment that is divided and distributed to your creditors.
Some people think a debt management plan ruins credit ~ this is NOT true ~ I have been in one for four years and while in the program my existing cards are closed and I can't use them and I can't get new credit while in the program also there is a notation that is on my report from each creditor stating that I'm in a financial counseling program ~ the good new here is that after the program the notation falls off ~also another misunderstanding with DMP is that it lowers your credit score ~ this is also not true being in a DMP does not effect your score
If you consider going with a DMP try CareOne credit ~ they are non-profit and do not charge any fees!!!! They ask for a voluntary donation but you don't have to ~ I personally donate $5 per month just because
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