Has anyone ever done any debt consolidation?

[chippered]

I'm trying to reduce my credit card debt and need some advice. I currently have four cards i'm paying on, with a total owed on all four of about $9,000. I racked the debt up trying to stay afloat after my divorce, and I ended up taking most of our debt at the time of the divorce (foolish I know, but I wanted to make sure my son was taken care of). I'm going to school, so I cant really get another job.

Anyway, I was hoping to transfer all of my debt, possibly my car payment too, into one monthly payment. Has anyone else had any experiences they'd like to share? Any help or a push in the right direction would be greatly appreciated.

[23]

Re: Has anyone ever done any debt consolidation?

From what the guys here told me it really drops your credit into the ground.

Might not be the best possible scenario so try figuring something else out.

[Altimus]

Re: Has anyone ever done any debt consolidation?

What about transferring all that credit onto a 0% interest free for a year credit card. I get these offers daily so I'm sure other people do too. If you can get one like that, that doesn't charge money for transferring that over than you should be good.

But as KDRE said, your credit score could take a big hit.

[chippered]

Re: Has anyone ever done any debt consolidation?

Wow, thanks guys, I didnt realize my Credit Score would suffer as a result of consolidating. Thats the thing, I've not been late on any of my payments or anything, so my credit score is great. I just feel like i'll be paying these forever. Its not the end of the world, but you know.

Primetime, yeah, thats my other option. I get those offers pretty frequently. In fact, my card with the highest available credit used to send me 0% interest offers a couple of years back, but I still had a balance on it so I didnt want to use it because as I pay my bill, they reduce the 0% interest portion while the remaining balance with the normal interest rate continues to build. However, thanks to tax season, i'm gonna have that one just about paid off, so hopefully they'll send some more of those, or like you said 0% interest for a year or whatever.

[23]

Re: Has anyone ever done any debt consolidation?

Wow, thanks guys, I didnt realize my Credit Score would suffer as a result of consolidating. Thats the thing, I've not been late on any of my payments or anything, so my credit score is great. I just feel like i'll be paying these forever. Its not the end of the world, but you know.

Primetime, yeah, thats my other option. I get those offers pretty frequently. In fact, my card with the highest available credit used to send me 0% interest offers a couple of years back, but I still had a balance on it so I didnt want to use it because as I pay my bill, they reduce the 0% interest portion while the remaining balance with the normal interest rate continues to build. However, thanks to tax season, i'm gonna have that one just about paid off, so hopefully they'll send some more of those, or like you said 0% interest for a year or whatever.

Well, all you can do is

The long or somewhat long way.

1. Pay one card/bill off by putting more money on it, and when it's paid off, put that money on another card/bill along with what you are paying on it until you are done.

2. As Primetime said, use a 0% interest card. Of course the balance goes down faster so it's a win win. I've done both and they worked pretty well.


Now with consolidation I believe Aholbert told me he did it, and his credit score bottomed out until the balance of the loan was completely paid off and that took time, so if you plan on doing that you had better not be looking for a house or car.

I like Clay's naming of consolodation as "bankruptcy-lite".

[chippered]

Re: Has anyone ever done any debt consolidation?

Well, all you can do is

The long or somewhat long way.

1. Pay one card/bill off by putting more money on it, and when it's paid off, put that money on another card/bill along with what you are paying on it until you are done.

2. As Primetime said, use a 0% interest card. Of course the balance goes down faster so it's a win win. I've done both and they worked pretty well.


Now with consolidation I believe Aholbert told me he did it, and his credit score bottomed out until the balance of the loan was completely paid off and that took time, so if you plan on doing that you had better not be looking for a house or car.

I like Clay's naming of consolodation as "bankruptcy-lite".

Yeah, I will be getting a house in the next year or two, so my credit score is really important to me. Thanks for all of the advice and information!

[Scottdau]

Re: Has anyone ever done any debt consolidation?

Wow, thanks guys, I didnt realize my Credit Score would suffer as a result of consolidating. Thats the thing, I've not been late on any of my payments or anything, so my credit score is great. I just feel like i'll be paying these forever. Its not the end of the world, but you know.

Primetime, yeah, thats my other option. I get those offers pretty frequently. In fact, my card with the highest available credit used to send me 0% interest offers a couple of years back, but I still had a balance on it so I didnt want to use it because as I pay my bill, they reduce the 0% interest portion while the remaining balance with the normal interest rate continues to build. However, thanks to tax season, i'm gonna have that one just about paid off, so hopefully they'll send some more of those, or like you said 0% interest for a year or whatever.

It is kinda both, Debt is not good too, so you choose your posion. If it was me I would transfer the balance to another C.C. And really start paying as much as I can each month to knock it down. Also, you could take a out a small loan, the payments might cheaper.

[Scottdau]

Re: Has anyone ever done any debt consolidation?

Yeah, I will be getting a house in the next year or two, so my credit score is really important to me. Thanks for all of the advice and information!

If you want to get a house loan you will have a better chance if you have no debt, unless you make a lot a year. They don't like debt, they think that will affect them from getting their payment paid each month from you.

[Altimus]

Re: Has anyone ever done any debt consolidation?

If you want to get a house loan you will have a better chance if you have no debt, unless you make a lot a year. They don't like debt, they think that will affect them from getting their payment paid each month from you.

Also worse credit score and more debt = higher interest rate on that house loan.

So I think the best thing for you to do is transfer all that over onto one 0% interest free credit card and start paying it off. Good luck man.

[aholbert32]

Re: Has anyone ever done any debt consolidation?

Well, all you can do is

The long or somewhat long way.

1. Pay one card/bill off by putting more money on it, and when it's paid off, put that money on another card/bill along with what you are paying on it until you are done.

2. As Primetime said, use a 0% interest card. Of course the balance goes down faster so it's a win win. I've done both and they worked pretty well.


Now with consolidation I believe Aholbert told me he did it, and his credit score bottomed out until the balance of the loan was completely paid off and that took time, so if you plan on doing that you had better not be looking for a house or car.

I like Clay's naming of consolodation as "bankruptcy-lite".

Yep, dropped from the high 600's to the low 600's just because I consolidated 2 credit cards. Almost wasnt able to buy a house because my credit was so low. Thankfully owning a house does wonders for your credit and now im in the mid 700s.

[pk500]

Re: Has anyone ever done any debt consolidation?

Yeah, I will be getting a house in the next year or two, so my credit score is really important to me. Thanks for all of the advice and information!

With that much CC debt? I hope you have a nice income. Otherwise, your mortgage rate will be ridiculously high, plunging you even deeper into the debt pool.

It's funny, but no one here has offered the only ideal solution to escaping debt: Spend less than you earn and stay on a VERY strict budget. There are no shortcuts.

Think of all of your non-essential purchases and trim or eliminate them. Gaming? Don't buy any games or systems. Soda? Drink water or juice instead. Clothes? Keep what you have for the next year. Fast food? Cook instead.

Etc., etc., etc.

Unless you're willing to make that sacrifice and commitment, you'll be saddled with debt for a long time unless your income increases significantly. Short-term pain, long-term gain. You simply can't have your play toy cake and eat it while you're in deep debt.

Take care,
PK

[BoA]

Re: Has anyone ever done any debt consolidation?

If you have substantial Debt as I do, and owe close to 8,000 what is the best way to pay it off/re0establish credit rating?

Pay it off slowly bill by bill, or do Debt Consolidation payments for it al lat once.

Or anything else?

I'm not too familiar with all this and would like to start saving for a home.

Thanks for any advice that may come my way.

[dave360]

Re: Has anyone ever done any debt consolidation?

I went with Take Charge America (google em if you'd like) My wife wanted to go back to school, so we consolidated it all 4 years ago and make one payment each month and as of February of next year, I'll be debt free. I've went without credit cards for four years. It's been rough at times, but well worth it.

[23]

Re: Has anyone ever done any debt consolidation?

With that much CC debt? I hope you have a nice income. Otherwise, your mortgage rate will be ridiculously high, plunging you even deeper into the debt pool.

It's funny, but no one here has offered the only ideal solution to escaping debt: Spend less than you earn and stay on a VERY strict budget. There are no shortcuts.

Think of all of your non-essential purchases and trim or eliminate them. Gaming? Don't buy any games or systems. Soda? Drink water or juice instead. Clothes? Keep what you have for the next year. Fast food? Cook instead.

Etc., etc., etc.

Unless you're willing to make that sacrifice and commitment, you'll be saddled with debt for a long time unless your income increases significantly. Short-term pain, long-term gain. You simply can't have your play toy cake and eat it while you're in deep debt.

Take care,
PK

Well truth of the matter is that isn't his question, and there were solutions offered to him as to what he can do.

Now I agree how to eliminate debt would be a great thread.

[dave360]

Re: Has anyone ever done any debt consolidation?

If you don't want to consolidate then I'd suggest googling "Dave Ramsey" He does a radio show and has written several books on how to get out of debt. He's quite good.