If so please give me some pros and cons of using this.
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4 Comments to “Has anyone ever used a debt consolidation service ?”
On the pro side you won’t have bill collectors calling you all the time and you might be able to relax. On the con side you have to take this as a lesson learned. Your credit will be trashed, but not as bad as a bankruptcy. That doesn’t mean you won’t be able to get credit, but the interest rate will be much higher. You will still have to pay for everything, they can get you some slight deductions, maybe as high as 20%. You have to be careful, many of them are just new lenders at a higher rate. Then instead of many little dogs yapping at you all the time you have a pit bull to deal with every month. Look for a consumer credit counselling service, they are non profit and have “YOUR” best interest in mind.
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
Debt consolidation companies are a joke! They charge you to allow them to pay your bills for you. If you list your bills from smallest to largest, make minimum payments on the everything except the smallest and put all your “extra” money every month on the smallest, you can pay off these debts in no time. It’s called a debt snowball.
Using Consumer Credit Counseling Services is akin to filing Chapter 13 bankruptcy. Banks will view that as a Chapter 13 and you will have a really hard time getting a car or home loan.
November 18th, 2008 at 1:20 pm
On the pro side you won’t have bill collectors calling you all the time and you might be able to relax. On the con side you have to take this as a lesson learned. Your credit will be trashed, but not as bad as a bankruptcy. That doesn’t mean you won’t be able to get credit, but the interest rate will be much higher. You will still have to pay for everything, they can get you some slight deductions, maybe as high as 20%. You have to be careful, many of them are just new lenders at a higher rate. Then instead of many little dogs yapping at you all the time you have a pit bull to deal with every month. Look for a consumer credit counselling service, they are non profit and have “YOUR” best interest in mind.
November 20th, 2008 at 11:40 pm
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
November 22nd, 2008 at 10:27 am
Debt consolidation companies are a joke! They charge you to allow them to pay your bills for you. If you list your bills from smallest to largest, make minimum payments on the everything except the smallest and put all your “extra” money every month on the smallest, you can pay off these debts in no time. It’s called a debt snowball.
Using Consumer Credit Counseling Services is akin to filing Chapter 13 bankruptcy. Banks will view that as a Chapter 13 and you will have a really hard time getting a car or home loan.
November 24th, 2008 at 11:27 pm
May be I Can Help You:
Just try:
They Will Definetly Help You