PostHeaderIcon Debt consolidation or personal loans?

Has anyone ever had very high credit card debt and used a debt consolidation company or got a personal loan to help pay them off? Did it help you or did you end up paying for longer and more interest? I am trying to find the best way to help my husband get out of debt, from all the moves and stuff.

5 Responses to “Debt consolidation or personal loans?”

  • CatDad says:

    1) Using personal loans to consolidate debt can be tricky. Many people quickly find themselves in twice as much debt as when they started….because it’s simply too tempting to start using all that newly available credit that was paid by the consolidation loan. If you get this type of loan, contact your credit card companies after the debt has been paid off by the loan and request voluntary credit limit reductions to under $500 to avoid the temptation of using all that newly available credit again.

    2) Debt consolidation firms have you deliberately default on your credit cards to settle for less. When you use such a firm, the monthly payment you make is going towards their settlement fees and to build a settlement account. Their fees are taken out first. Your credit cards will not be paid and will go into complete default during this process, which ruins your credit rating. This is deliberate so that they can attempt settlements for 50%.

    People signing up with debt settlement firms often have the mistaken impression that their creditors will gladly work with such companies..or that they are obligated to accept settlements. You can never predict how your creditors will respond..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. If the process fails you can end up in a much worse financial situation.

    3) Another option: NFCC is a non profit organization that was set up by the credit card industry to offer assistance to people who are struggling to pay their credit card debt…and who may by considering filing for bankruptcy. They can offer reduced payments and interest (but NOT settlements for less).

  • Lim Young says:

    Hello,i am Mrs lucy from Manchester City Uk,i was in so much in need of loan i posted a question here on how i need a loan someone advised me to contact global trust financial services,i was scared at first but i decided to give them a trier to my greatest surprise after meeting up with the loan firm terms and conditions i was granted the loan i requested for, you contact this office via e-mail.

  • effensource says:

    Yes, for me, getting my debt consolidated did help reduce my interest and gave me a plan to pay it off quicker. I worked with a financial advisor to make my plan to repay it.

    Good luck!

  • Blair says:

    Debt consolidation. There are lots of such companies on internet, you’d better choose them carefully.

  • shanmugam says:

    I heard a lot about Debtsettlement2day. check their website

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