Does debt consolidation work?
Answers:
I have heard many people who have used debt consolidation and it always made their credit worst. Because the debt consolidation didn't pay the creditors on time which reflected on their credit. And they charge a fee and you will end up paying way more then you own. I wouldn't always say that bankruptcy should be an answer, but if you have a lot of debt you may want to think about a Chapter 13 bankruptcy which you work out a payment plan with the court and most of the time they reduce what you will have to pay off and you just make monthly payments to the court for 3-5 years, which is the same amount of time you would be in debt consolidation. But with the bankruptcy after the payment plan is over any debt not paid off will be discharged. So I would say try to pay off the bills on your own, but if it is too much bankruptcy may be the best option.
The best way to consolidate your debts is to take out a second mortgage on your home if you own it.
honestly, ive looked into this but decided its NOT worth it, debt consolidation screws up your credit just as bad as bankrupcy but banruptcy is alot cheaper. Basically with debt consolidation if you owe like $6000 total for your debt, you will end up paying 9-10,000 back. The debt consolidation company makes you pay off an amount something like 300/month for 3 years which adds up.
Debt Management Plans: If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone. You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.
In a DMP, you deposit money each month with the credit counseling organization, which uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees, but check with all your creditors to be sure they offer the concessions that a credit counseling organization describes to you. A successful DMP requires you to make regular, timely payments, and could take 48 months or more to complete. Ask the credit counselor to estimate how long it will take for you to complete the plan. You may have to agree not to apply for — or use — any additional credit while you’re participating in the plan.
Yes it does. But you have to follow through with the company that you're working with. Visit the below website
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.
Hi,
I used " Credit Solution" to consolidate my debt.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News special edition.Check it out here:
http://creditsolution.ez-mart.biz...
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