PostHeaderIcon Do debt consolidations loans give you extra money if you need it?

I am a renter and would like to consolidate my loans but I need some car repairs done. is there anyway to do this?

2 Responses to “Do debt consolidations loans give you extra money if you need it?”

  • Rick B says:

    DON’T do debt consolidation. It just moves your debt around. It rolls high interest items AND LOW interest items into the same loan at a mid-range interest rate. It might lower your monthly payments, but that means it will take even LONGER to get out of debt. It also frees up all your lines of credit so you can simply run them up again! Finally, you often have to pay a loan origination fee. On top of that, you want to add MORE debt into the picture for a car repair? Pay for the rapair, don’t finance it.

    Call all of them and work out a payment plan and try to get your interest lowered or stopped.

    Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

    You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don’t eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.

    Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

    Go to the library and get “The Total Money Makeover”. Read it and follow it carefully.

    Go check out Dave’s website as well.

  • Josie says:

    If you have collateral in your car or any other assets, then you can use those against the loan and borrow up to whatever percentage your bank will lend, depending on model, etc.

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