Anybody ever used Debt Consolidation before??

[a_scobel]

Mmm'kay I'm looking into debt consolidation...not like I'm THAT deep in with my debts, but I'd just like to make them a little lower, especially now that I'm going to be adding about a grand to my American Express credit card for my exhaust & other mods (It already has about 1600 on it...limit of 6k. Not bad). I really don't have that much...I have 2 credit cards (Capital One and American Express), and my car payment (Only 211 a month. Only have about 2500 left to pay off).So has anybody tried this?? Where's a good place online to get it done?? Will it bring my credit report score down, I'm guessing? Also, do they cancel my credit cards?? I'm not just going to click on the junk mail in my e-mail box & try THOSE offers...fawk that. heh. So yeah...anybody?

 

[Redmachine]

yes and I don't recommend using it. We were screwed even worse using the debt consolifation thing.

 

[a_scobel]

yes and I don't recommend using it. We were screwed even worse using the debt consolifation thing.

Really? Do explain!! My sister used it a couple years ago, and said it helped her out. She's deployed to Kuwait right now though, so I can't really ask her about it...

 

[TurBoGs-T]

Hell No!!!!

Alan, you do not even need to be thinking about using a debt consolidation company or such. If you are only owe $4000 then you are good. Even if you owe more you are good. Are you having problems paying them or been late paying them??? Just call your credit card company and tell them you want a lower rate. I have to put some of my clients in the debt consolidation programs and for those who don't know.... if you sign up for any debt consolidation or credit counceling it goes on your record and it's just as bad as going bankrupt. So i would highly suggest staying away from it. Unless you are really really in over your head then just pay like you are now. I have seen people with good credit go with these services just cause they want to cut their monthly payments down a little and it messed everything up for them. Like i said i have put a couple of my clients in them and none of them are doing any better. It only works if you are way over your head in debt and your credit is soooo bad that all it can get is better. If that's not you, i wouldn't suggest it.

 

[a_scobel]

Hell No!!!!

Alan, you do not even need to be thinking about using a debt consolidation company or such. If you are only owe $4000 then you are good. Even if you owe more you are good. Are you having problems paying them or been late paying them??? Just call your credit card company and tell them you want a lower rate. I have to put some of my clients in the debt consolidation programs and for those who don't know.... if you sign up for any debt consolidation or credit counceling it goes on your record and it's just as bad as going bankrupt. So i would highly suggest staying away from it. Unless you are really really in over your head then just pay like you are now. I have seen people with good credit go with these services just cause they want to cut their monthly payments down a little and it messed everything up for them. Like i said i have put a couple of my clients in them and none of them are doing any better.

Ah okay....well then......scrap that idea.. Thanks dude. And no I'm not having any problems paying them or being late. Gotta love being able to pay all your bills online!!

 

[Defiant]

Card-surf. Stay with the companies that offer 3%, 2% or even 0%. When the term of the low-interest expires, change accounts.

 

[a_scobel]

Card-surf. Stay with the companies that offer 3%, 2% or even 0%. When the term of the low-interest expires, change accounts.

Hmm isn't that bad for your credit though, having a credit card for a short time period, then getting rid of it??

Heh..and 2, 3% cards?? Do those even exsist?? Or are you just being your usual smart-a$$ self?

 

[ghettosmurf]

yah i work at discover card....all i can say is unless you ABSOLUTALLY have too. dont do it. They dont really help and they screw you over. The average person with a brain can do about as much as those companies. What you do is call up one of the 2 cards that you have and see what type of balance transfer rate they have. if its a good rate, transfer all your balance onto that card....so say you have like a 9.99% intrest. Generally balance transfers are at better rates because the company is trying to gain your business so youll proly get anywhere from 0% to 4%. so transfer it all on one card, but be careful ur payment will go to the lower interest first which sucks because the other balance is earning interest still. So at that time try to transfer that COMPLETE balance back over to the other card. I know both those companies have pretty good rates available. if you have decent credit they should be helpful. the reason to transfer back over is so that everything is at a low rate. This should def. help you out. If that doesnt work, tell them you want to close the account. They will transfer you to the retention deprt. and they will do what they can to make u keep the account open. So you can just be like well i wanna close unless you can help me out w/my rates or w/a balance transfer. TRUST ME this WORKS!!! if all else fails, just apply for a discover card, usually new cardmembers get 0% balance transfers for about 18 months. TAHT is how u do debt consolidation. Make sure u try to pay MORE than ur minimum payment or you are not helping yourself out. and none of what i said will hurt ur credit, except maybe applying for a new card. they pull a credit report

 

[Defiant]

I'm getting 0% offers from Discover on transfers for the life of the balance so long as I use the card every month.

 

[phastalon]

Credit cards suck, I suggest getting rid of them as quick as possible. I've been down that road before, but I paid all mine off and now the only one I have is store-specific and I keep a minimum balance on that one to continue helping my credit score.

 

[splattj]

I'm getting 0% offers from Discover on transfers for the life of the balance so long as I use the card every month.

Just be careful. When you put a balance on the card, it will be at a higher interest rate. Then, when you make a payment, they apply your payment to the balance transfer and you have to pay interest on the newer purchases until the balance transfer is paid off. Now if you put a tank of gas a month on the card or something, you'll still be in pretty good shape.

Just be carefull. Read EVERYTHING. And shop around. Good luck.

 

[xxrealmsxx]

Just be careful. When you put a balance on the card, it will be at a higher interest rate. Then, when you make a payment, they apply your payment to the balance transfer and you have to pay interest on the newer purchases until the balance transfer is paid off. Now if you put a tank of gas a month on the card or something, you'll still be in pretty good shape.

Just be carefull. Read EVERYTHING. And shop around. Good luck.

All defiant has to do is buy gum at the store to satisfy the clauses on Discovers deal :laugh:

But yeah card-shop, just look around to see what you can get, call a few credit card companies but dont sign up for anything. Hell call your company and ask them what they can do and then just tell them you're shopping around for a lower interest rate. If they want your bussiness they may keep it. I worked at MBNA for a year and a half and thats how it worked with us.

 

[Sephroth57]

whats a good first credit card to sign up with? i tried getting one like over a year ago and they declined cause i barely had any credit but ive been paying my cell phone bill for a while and my car insurance , and ive had the same job for a year and a half now. whats good?

 

[TurBoGs-T]

whats a good first credit card to sign up with? i tried getting one like over a year ago and they declined cause i barely had any credit but ive been paying my cell phone bill for a while and my car insurance , and ive had the same job for a year and a half now. whats good?

You probably have to start off with one of those merchant accounts with best buy, sears, macy's or something like that. They are usually a bit easier to get. If you can't get one of those then you can go to your bank and get a secured credit card just to start things off.

 

[turbohounds]

Debt consolidation is worse than bankruptcy -trust what everyone is saying. Bankruptcy is off your record in seven years, and you don't pay your bills. Debt consolidation stays with you, destroys your credit equally bad (you don't pay your bills, the company takes your money for a year or so, then offers to settle), you still have to pay, and the bad credit is there for up to ten years after you pay it off. Either get a low interest loan and destroy all of your credit cards, or get a low interest card and transfer.

 

[Redmachine]

Debt consolidation is worse than bankruptcy -trust what everyone is saying. Bankruptcy is off your record in seven years, and you don't pay your bills. Debt consolidation stays with you, destroys your credit equally bad (you don't pay your bills, the company takes your money for a year or so, then offers to settle), you still have to pay, and the bad credit is there for up to ten years after you pay it off. Either get a low interest loan and destroy all of your credit cards, or get a low interest card and transfer.

It's 10 years now, yes I've filed chap 7 back in 99, It was 7 then but new legislation was brought forth and ####ed everyone, so now instead of it being off in 06 its off in 09 :thumbdown

 

[autronicDSM]

Eh? Worst then bankrupcy? Wierd, when I was in college I had $14k on my cards. I was paying about $500/mo in minimum payments. I enrolled in a local company called CCM. My payment went to $330. I have 2 years left on that plan and I just got a loan for a house. Only hassle bank gave me was I had to get OK from CCM that I can take on a loan.
Record gets clean when my plan ends in 2 years. I don't know what you guys are talking about but you should look into what company offers. I'd say look around if you have a big debt. It will help alot, especially when you're tight on money while going hrough college.

 

[boostedinaz]

I have worked in banking for 4 years now and I will toss my .02 in.

Everyone is saying jump around and get a balalnce transfer or call them and get a better rate. That is all good advice, but no one has said the easiest and most simple way, just make bigger payments on you existing debt. If it is only 4K, less than that unsecured, then it wont take you long at all to pay it off. Make the minimum on your car and knock those CC's out first. Unsecured debt looks worse then debt with collateral. Most lenders like to see a long history with everything. Residence, job, CC's, things like that. It shows that you are not flighty and have the will power to stay in one place. That is important along with good credit.

For the guy who said he pays his cellphone bill ontime everymonth, I hate to tell you, but that doesnt reflect on your credit report. Yes, they check your credit to approve you in the first place, but they very rarely report it to your credit. As it has been mentioned get a secured credit card and that will help build your credit.

 

[Redmachine]

For the guy who said he pays his cellphone bill ontime everymonth, I hate to tell you, but that doesnt reflect on your credit report. Yes, they check your credit to approve you in the first place, but they very rarely report it to your credit. As it has been mentioned get a secured credit card and that will help build your credit.

To add the the cell thing, they won't report it to credit agencies unless you are ####ing up then it's a bad debt. They won't report it if you are up to date on all your payments which is kind of one sided. They should report good and bad not just bad, but they don't.

 

[autronicDSM]

Why should they? It's your job to pay bills. I guess you think you deserve a cookie every time you tie your own shoes too?

 

[boostedinaz]

Why should they? It's your job to pay bills. I guess you think you deserve a cookie every time you tie your own shoes too?

No one said he wasnt paying the bills. It would, however, be nice to all of us if we made on time payments to cell phone companies, if they would report it to a credit. I think if they are going to check my credit to see if I have a history of paying back debts, then they should report good or bad.

I would love a cookie for tying my shoes, but you should check my credit first to make sure, at somepoint, you get a cookie back.

 

[Shifty]

Yeah, but if everyone paid their bills on time my mom wouldn't have 200 collectors working for her... So then you put my mom out of a job and that is a bad thing :thumbdown haha.

Seriously though, if you can only afford the minimum payment on your bills than what Defiant said is a good idea. My mom moved all her credit cards to discover and has almost all of it paid off.

 

[a_scobel]

Good advice from everybody. I'm going to look for a lower interest credit card, and hopefully they'll give me a big enough limit to transfer the American Express card to that. I won't cancel the American Express card...when I was trying to get a car loan, I got denied from a lot of places because my only credit history was a previous credit card that I only had for 9 months before paying it off & cancelling it. So yea, like mentioned above, they like to see people sticking with a card longer than that. Also if I really had to, I know my parents would lend me however much money I needed, and just pay them back whenever. I hate asking for money & hand-outs though.

 

[onegee]

I learned this from studying business, economics, and advice from wealthy people. When you have debt, there is a FAST way to kill it. Most people just dont think and they pay minimum balances. Heres a good strategy to reducing debt faster.

Find your smallest amount of debt (bill). Pay that one off quickly. Like if the minimum is 20$ out of 300$ bill, just add a little more each payment, like $40 or so. It'll be gone in no time. Then use the money that you were using to pay that off and add that to the next smallest bills payment. After that is paid off, take what you were paying for BOTH of them and add it to the next smallest one. It takes discipline but after a while, with all the money being added up, Bill 1 payment + Bill 2 paym. + Bill 3 paym. etc. added on to the next biggest bills payment, you'll get out of debt quickly.

Just some stuff I learned, take it with a grain of salt. When you break down your debt and manage your money correctly, you'll find a solution to get out a bit faster.

Good luck and I hope you get out of debt. "Owe no man nothing but your love".

Pz

 

[MybishiGSX]

I learned this from studying business, economics, and advice from wealthy people. When you have debt, there is a FAST way to kill it. Most people just dont think and they pay minimum balances. Heres a good strategy to reducing debt faster.

Find your smallest amount of debt (bill). Pay that one off quickly. Like if the minimum is 20$ out of 300$ bill, just add a little more each payment, like $40 or so. It'll be gone in no time. Then use the money that you were using to pay that off and add that to the next smallest bills payment. After that is paid off, take what you were paying for BOTH of them and add it to the next smallest one. It takes discipline but after a while, with all the money being added up, Bill 1 payment + Bill 2 paym. + Bill 3 paym. etc. added on to the next biggest bills payment, you'll get out of debt quickly.

Just some stuff I learned, take it with a grain of salt. When you break down your debt and manage your money correctly, you'll find a solution to get out a bit faster.

Good luck and I hope you get out of debt. "Owe no man nothing but your love".

Pz

BINGO!! You beat me to it my friend. That is the absolute best way to take care of credit cards. I working on my last 1 right now.

I'm an Underwriter for a Mortgage Company and I can tell you I don't like to see debt consolidation on a credit report. Go with what onegee just said. You'll be debt free before you know it


Good Luck!