| Debt Consolidation Advice |
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daniebarell4
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| Debt Consolidation Advice |
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Benefits of Debt Consolidation
The benefits of include:
* Consolidate numerous smaller payments into one single monthly payment. For example, put all the credit card payments into one payment.
* Acquire overall lower interest rates and lower monthly payments. Debt consolidation companies will negotiate to lower interest rates, lower monthly payments, and sometimes even negotiate a settlement of a particular amount of the debt.
* Gain tax advantages if possible. Debt consolidation can cause tax reduction in some cases. For example, the interest people pay on their loan may be tax deductible.
* Even those people who have bad credit qualify. Generally speaking, a credit score of 620 or below is typically classified as a poor score.
* It is also considered an important step in establishing a good credit profile when applying for a home loan. Loan providers may recognize that most people who enter such a program are trying to repay their financial obligations in good faith.
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Thu May 27, 2010 3:02 pm |
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jason_simpson
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The most important benefit is Rate Reduction. You can reduce the interest rate on your bills and debts through negotiation with creditors. If you approach a debt consolidation company, they'll negotiate on your behalf. Your creditors will restructure payments so that you can manage your debts better.
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Sat May 29, 2010 4:00 am |
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pwsolutions
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Location: Dallas, TX
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the only benefit on debt consolidation is to reduce your current interest rate.
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Wed Jun 16, 2010 3:08 pm |
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pwscs
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quote:
Originally posted by pwsolutions
the only benefit on debt consolidation is to reduce your current interest rate.
and also to split your monthly payments into smaller amounts.
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Wed Jul 07, 2010 11:02 am |
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Stuartthomas
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one of the big profit of debt consolidation it helps to get you the reduced rate of interest so that you can pay the real debt instead of just paying the amount of interest.
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Mon Jul 12, 2010 11:39 am |
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Credit Money & Life
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Location: Dallas, TX
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People need to realize though the pitfalls of debt consolidation.
Debt consolidation and Consumer Credit Counseling gets reported on your credit report as a Third Part Intervention. Also known as TPI. Which viewed on your credit report as a little brother to backruptcy and stays on there for 7-10 years. With a majority of the companies service fees it doesnt do anything to lower your payment but is designed to get you out of debt in 5 years. (You could get out on your own in 5 years with the same minimum payment by yourself)
You need to note that any type of program out there that helps you with your debts affects your credit. If you can pay your bills on your own and can design a program yourself then do that.
Only go in to a program if you are really struggling with your debts or if you are thinking about filing BK.
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Tue Jul 13, 2010 6:42 pm |
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pwsolutions
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quote:
Originally posted by Stuartthomas
one of the big profit of debt consolidation it helps to get you the reduced rate of interest so that you can pay the real debt instead of just paying the amount of interest.
and whats in it for Debt Consolidation Companies?
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Sat Jul 17, 2010 9:54 pm |
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AndrewB
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If you pay a little more than the minimum on your credit cards, you'll take comparatively less time to pay off the debt. A consolidation program helps you to make payments such that you don't have to carry on with an account too long. Thus, it accelerates the time period you need to get debt free. With this program, you can eliminate debt in just 4-6 years compared to an average time period of 20 years or more.
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Sun Jul 18, 2010 12:23 pm |
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Credit Money & Life
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Location: Dallas, TX
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quote:
Originally posted by pwsolutions
quote:
Originally posted by Stuartthomas
one of the big profit of debt consolidation it helps to get you the reduced rate of interest so that you can pay the real debt instead of just paying the amount of interest.
and whats in it for Debt Consolidation Companies?
Debt Consolidation Companies charge a fee as any company does. Now your Credit is going to take a hit.
1. Pay Bills = No Credit affect
2. Debt Settlement = Credit affected for 3-4 years and about a year to rebuild (for people that are stuggling)
3. Debt Consolidation = Credit affected for 7-10 years and is reported on credit report as TPI (Third Party Intervention) which is viewed as a little brother to bankruptcy.
4. Bankruptcy = Credit affected for 7-10 years. You have to disclose that you filled BK anytime an application asks.
Paying bills on time is always the best. If you can pay more then BONUS.
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Mon Jul 19, 2010 9:36 pm |
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Ashley Watson
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Location: USA
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| Re: Debt Consolidation Advice |
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Debt consolidation is favorable for those who're struggling to manage multiple debts and cannot afford to make several payments each month.debt consolidation gives them a way out by which they can replace multiple bills with one low monthly payment and pay off debt with ease. When you consolidate debt, you pay less each month and save thousands of dollars.
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Thu Aug 26, 2010 7:47 am |
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teal1066
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It is better to give money at one place than number of places.Debt consolidation is really helpful sometime.
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Thu Aug 26, 2010 10:26 am |
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davidbkeegan
Contributing Member
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quote:
Originally posted by Credit Money & Life
You need to note that any type of program out there that helps you with your debts affects your credit.
and will charge you, everyone is out to get money, remember. Organize your debts and pay a little more than the minimum. Debt consolidation is disguised as a quick fix when with dedication you can do the same thing on your own without affecting your credit
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Thu Aug 26, 2010 9:26 pm |
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Allan Henry
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Joined: 01 Mar 2011
Location: Los Angeles
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| Credit Card Debt Relief Help |
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As the economy continues to make it tougher and tougher for people to meet their financial obligations, many are looking for ways to find some relief from the debts. Many are looking for stop debt arbitration to help them in making arrangements with their creditors so that they can find ways to pay off their debts without getting farther in debt. There are many options for those who are in this situation, but the choices can be a bit confusing if one is not familiar with the different types of services that various companies offer to their clients.
For many debt settlement seems to be one of the easiest answers when they are in this situation. Debt settlement will help in decreasing one’s actual debt balance and it may allow you to maintain some control of how your finances are handled, but it will not protect your assets or protect you from legal actions. In addition, this type of stop debt arbitration will not eliminate monthly payments. This can be a real disadvantage for those who are having a difficult financial time. They may not be able to make the monthly payments and so a settlement is of no benefit to them.
Credit counselors help you by negotiating with your creditors to arrange lower monthly payments. They do not help decrease debt balances. They do help to provide protection for your assets and as long as you make the agreed upon monthly payments you will be protected against further legal action. This can be a good option in some circumstances but for those whose cash flow has drastically decreased due to job loss or pay cuts, this can be of little benefit. For those in this type of situation, they need stop debt arbitration. A way to eliminate the monthly payments so that they can again make ends meet.
There are many options that one can choose from when one is trying to stop debt arbitration. It is important that one research the prospective company that they are planning to use. The company should have a good track record and experience in the type of credit help they offer. It is beneficial that the service you use has a way to guard your assets, helps provide debt validation and can assist with negotiation and resolution as well as credit repair. Finding a service that can provide these features is generally your best bet in finding help with your debts and finances.
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Tue Mar 01, 2011 7:32 pm |
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MrPolarZero
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Location: Aliso Viejo, California
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Nice take on credit counselors. Yes, they can be very helpful in trying to figure out how to work on your debts and settle them the best way.
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Wed Mar 02, 2011 5:15 am |
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cccfree
Full Member
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I agree that a credit counselor could really help your debt situation.
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Tue May 10, 2011 10:00 pm |
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