PostHeaderIcon Debt Consolidation Loan For Bad Credit?

Are bill consolidation loans different from debt consolidation? I am confused in this two concepts. Want to know more about it and get my medical bills, or credit card bills consolidated asap. Also can anyone suggest any good resources for bill consolidation and also want to advice me what to choose.

3 Responses to “Debt Consolidation Loan For Bad Credit?”

  • Judy says:

    Stay away from anything that says negotiation or settlment.
    They will charge you thousands and not pay your bills to make creditors nervous.
    This will ruin your credit while you accrue more interest and late payments.
    And now, I just read, that cards are not settling like they used to – they want their money.

    Go to this federal website – non profit organization that will help you and put you on a DMP program.
    Call their 800 number and make an appointment with a local office.
    This should be free (max $25/ month) depending on your salary.
    Their reviews call them angels – they will help you.

  • leb says:

    Bill and debt consolidation are basically the same thing. The entire concept behind consolidation is that a bank or credit union (please don’t go somewhere shady and get scammed) totals up your entire debt in credit card bills, personal loans, etc. and gives you a loan for all those items so that you can pay off every creditor immediately. Then you just have one loan and one payment at the financial institution, hopefully, at a lower rate than any of those prior loans.

    A consolidation is NOT a debt settlement. You are merely borrowing from one creditor to pay off all the others. Many people use their home’s equity to do this. If you have a home with any equity, you’re more likely to get a good rate (as low as prime right now) on a prime asset line of credit. If you do not own a home or have very little equity, call a few credit unions or banks in your area to see if they offer anything similar without using home equity.

  • facebook says:

    You need to have good credit to get a real debt consolidation loan..

    Debt consolidation also refers to a risky practice of debt settlement: deliberately defaulting on your credit cards to try to force your creditors to settle for less.

    Stay away from any “debt consolidation” company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

Leave a Reply

Powered by Yahoo! Answers