| Consolidate Debt or Debt management plan?. |
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angie
First Time Poster
Cash: $ 0.25
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Joined: 21 May 2006
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| Consolidate Debt or Debt management plan?. |
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Consolidate Debt or Debt management plan.
What is the difference? What are the benefits?
Is one better than the other, when considering the affect it will leave on
my credit report. Is there a doubt about either one of them?
Please Reply.
Thank You
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Sun May 21, 2006 2:39 pm |
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therm10
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Joined: 27 May 2006
Location: Pittsburgh
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I don't know what is better on a credit score, but from what I have learned with paying off debt, you are better consolidating your debt and then working at paying it off. This will give you a lower interest rate (hopefully) and you won't be paying someone else extra money for help. You can always increase your credit score later, but you need to think about saving money first to get out of debt.
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Sat May 27, 2006 12:19 am |
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Kiaser
Senior Member
Cash: $ 43.05
Posts: 209
Joined: 12 Apr 2006
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| Re: Consolidate Debt or Debt management plan?. |
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quote:
Originally posted by angie
Consolidate Debt or Debt management plan.
What is the difference? What are the benefits?
Is one better than the other, when considering the affect it will leave on
my credit report. Is there a doubt about either one of them?
Please Reply.
Thank You
Your credit score isn't gonna matter much if you're in heavy debt already. And credit score hardly holds back lifes big purchases (like a mortgage, as even a sleaze bag with horrible credit can get a mortgage).
You don't need to concentrate on debt management or consolidation at all, in my opinion. It all boils down to one thing, pay your debts. It's boring, it takes forever, and it seems like it'll never end but once you are paying it down then you are on the right track. One formula to follow: when paying multiple debts, put most the money you have towards the debt with the largest interest rate (don't worry about the size of the debt).
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Sat May 27, 2006 5:23 pm |
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angelface
Contributing Member
Cash: $ 7.90
Posts: 36
Joined: 03 Aug 2005
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| Re: Consolidate Debt or Debt management plan?. |
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quote:
Originally posted by Kiaser
quote:
Originally posted by angie
Consolidate Debt or Debt management plan.
What is the difference? What are the benefits?
Is one better than the other, when considering the affect it will leave on
my credit report. Is there a doubt about either one of them?
Please Reply.
Thank You
Your credit score isn't gonna matter much if you're in heavy debt already. And credit score hardly holds back lifes big purchases (like a mortgage, as even a sleaze bag with horrible credit can get a mortgage).
not really, to get a good low interest mortgage, you gotta have insanely high credit score...
atleast here in canada
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Fri Jun 23, 2006 6:06 am |
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wildstuff
Member
Cash: $ 4.40
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Joined: 31 Aug 2006
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"Your credit score isn't gonna matter much if you're in heavy debt already. And credit score hardly holds back lifes big purchases (like a mortgage, as even a sleaze bag with horrible credit can get a mortgage)."
I disagree with Kaiser. You can't buy anything today without a decent credit score. Not even a car.
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Tue Sep 05, 2006 8:45 pm |
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JCook
Full Member
Cash: $ 11.20
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Joined: 24 Jan 2006
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How about just getting agressive and paying them off as fast as you can. Don't look for the magic bullet, bite the bullet and tighten the belt and get them paid off.
You can try to play the lower interest rate game, which isn't all bad, but your main focus should be on paying them off as fast as you can. If you are late on any of them then your credit is dinged anyway. If you haven't been late, then paying them off as fast as you can won't hurt you while debt consolidation will.
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Mon Sep 11, 2006 1:46 am |
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go2self
Preferred Member
Cash: $ 26.45
Posts: 129
Joined: 06 Aug 2006
Location: hawaii
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| Re: Consolidate Debt or Debt management plan?. |
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quote:
Originally posted by angie
Consolidate Debt or Debt management plan.
What is the difference? What are the benefits?
Is one better than the other, when considering the affect it will leave on
my credit report. Is there a doubt about either one of them?
Thank You
Consolidate is used by consumers to make life easier by consolidating the total debt for the benefit of a single lender, as in a single debt service payment.
Debt management is used to increase profits from activities that leverages debt for profits. Used more by professionals for risk management or to establish exit strategy for leveraged investments.
One works to bail you out the other to increase profits.
Time is our most volatile resource that if not used immediately is lost instantly
Last edited by go2self on Wed Sep 13, 2006 8:40 pm; edited 1 time in total |
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Mon Sep 11, 2006 5:47 am |
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UrCredit5
Member
Cash: $ 3.05
Posts: 14
Joined: 29 Aug 2005
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Debt management can be costly. I would only recommend it to someone who can't do simple math, or are too lazy to crunch some numbers and see that consolidating their debt is the best way to go in most cases, especially when dealing with credit cards.
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Wed Sep 13, 2006 8:30 pm |
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helpmeifucan
New Member
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Joined: 13 Nov 2006
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quote:
Originally posted by UrCredit5
Debt management can be costly. I would only recommend it to someone who can't do simple math, or are too lazy to crunch some numbers and see that consolidating their debt is the best way to go in most cases, especially when dealing with credit cards.
Sometimes debt management is the only resource you might have. If you can't get a loan, how can you consolidate?
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Fri Nov 17, 2006 8:51 pm |
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go2self
Preferred Member
Cash: $ 26.45
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Joined: 06 Aug 2006
Location: hawaii
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debt management (also known as risk management) is very different from credit or debt counseling.
profitable budgets are the result of debt management.
credit or debt counseling are needed by unprofitable budgets.
unless you are a government, then debt management can be defined as the practice of increased spending to justify increased taxation to allow increasing spending to warrant increasing taxes etc...
Time is our most volatile resource that if not used immediately is lost instantly
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Fri Nov 17, 2006 9:55 pm |
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UrCredit5
Member
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Joined: 29 Aug 2005
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My opinion is that your best bet would be to consolidate your debt. Like said before, debt management should only be used if you can't do simple math and compare how much money you're making to how much money you're spending on a month to month basis. Sometimes when applying for a debt consolidation loan, the loan officers will refer you to a debt management company or will have one within the building you can go to in which they will analyze your finances, and if necessary, they will help you to get the consolidation loan if that is the best way to go. The benefits of consolidating debt is to get rid of all the multiple interest rates and fees that you are paying towards multiple debt and turning it into only one fixed (hopefully) interest rate. In which this interest rate would be significantly lower than any credit card interest rate (if you have been carrying a balance on that credit card for some time). Good Luck!
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Thu Jan 11, 2007 5:37 am |
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Davy Dany
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Debt Management plan is basically a debt clearance plan, carried out by the borrower, which is agreed upon by both the debtor and the creditor. This is usually designed and arranged by the Debt Management Company. DMP is an effective way to consolidate your entire debt amount. You can repay them in affordable monthly installments to the debt management company you are working with. They will in turn distribute your funds to the separate creditors.
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Fri Feb 02, 2007 7:01 am |
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cccfree
Full Member
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Joined: 08 Mar 2011
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Debt consolidation is considered to be a little bit riskier and doesn't really do anything due to the fact that you're just moving your debt from several different places to one place.
Credit counseling and debt management plan is a way to negotiate with your creditors for a lower rate, and to set you up with a plan to pay off your debt faster.
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Tue Mar 08, 2011 6:20 pm |
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Eric80
Full Member
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Joined: 28 Jun 2010
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Debt consolidation is a form of debt management plan, as debt consolidation is grouping together all existing debts into a single loan, depending on your level of debt, income and current repayments. Debt management plans are a an agreed plan between you and your creditors so that you can repay your debts at a rate you can afford whereby a company can deal with the creditors for you therefore in a way consolidating your debts..
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Wed Sep 07, 2011 7:56 pm |
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