PostHeaderIcon What to think about debt consolidation loans?


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I’m wondering if getting a debt consolidation loan would be the best option for me and my husband. We just got married on May 22nd, both 22 and last month bought our first house. We also have very good credit scores; when we were applying for our home loan we both had 710+. The only thing is now we’re looking at all of our other bills that we have; it’s not TOO much, probably under 8k, but we’re really trying to get them paid off. Most of them have deferred interest right now which is good, but the expiration dates are coming up within the next 6 -12 months and we know we won’t be able to have them paid off by then and the interest rates on some of these things are very high.

Would getting a loan with a lower interest rate to pay off our credit cards be the best route to go? Any suggestions?
Steven, what you’re saying doesn’t even make sense. We already DID buy a house and we DID have the money to make a down payment. Because of that fact, now we DON’T have enough to pay all of our other debts before the interest kicks in.

3 Responses to “What to think about debt consolidation loans?”

  • Judy says:

    Debt consolidation will only make you poorer by extending your loan.
    You will pay more interest in the long run.

    If you start getting in trouble contact NFCC.org
    It’s the government non-profit agency that is there to help you.
    Call the 800 number – don’t email them – and make an appointment with a local office.

    Or… better idea
    Get a book on Debt and Credit Repair from your bookstore
    There are many, many tricks on dealing with creditors.
    These books are worth their weight in gold – sounds like you have time to dedicate to a good book.
    /

  • STEVEN F says:

    Debt CONsolidation allows you to CON yourself into believing you have done something about your debt. It does NOT decrease your debt at all. Given the fees involved, it actually INCREASES your debt. If you won’t be able to pay off $8,000 in the nest 6 months, you can’t afford a house at this time. If you have enough for a decent down payment, you can have $8,000 paid of tomorrow morning and spend the next 6 months using the payments to replace the $8,000.

  • Jill B says:

    Getting one loan is a good idea then you have one interest rate! one payment and can pay more than what is requested and get rid of this debt. Bargain with the interest rate with your credit score fight for a good one. The only problem with this is people do this all the time but then find them selves charging the debt right back up on their credit cards and now they owe double. And paying the minimum payment will get you no where. The best solution if you can is a 2nd mtg. this is tax ded. interest rate will be better and not figured the same as credit cards. Really check your options. Also with credit cards if you are late in paying one of the little clauses they can raise your rate to 19.99%. Read all the fine print very very carefully!!!

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