Home Equity Loan - Is a consolidation loan for both secured and unsecured debts a wise move if you have no other choices?

Is a consolidation loan for both secured and unsecured debts a wise move if you have no other choices?

My financial situation has decreased greatly recently and I owe more each month than I am making. This year I couldn't even afford Christmas presents for my children. I've already refinanced my home a few months ago and therefore have no equity built up since then. Please let me know what my best recourse should be. Thank you

Public Comments

I doubt a consolidation loan would solve your problem. You either need to make more money or reduce your expenses. A consolidation loan will probably end up with a higher interest rate than what you are paying. Also, with the credit market being tight like it is now. I don't think that you will qualify for a loan. Start contacting your creditor and explain your situation and beg them for help. Many may not seem that willing to help at first. You will need to be insistent on letting them know your financial situation. Whatever happens, do not make any promises that you can't keep. For example, if you can only afford to pay a company $50 a month, do not promise to pay $100 a month to make them happy. If you don't keep your promise to pay $100 a month, they will not be willing to work with you in the future. Before you start making any phone calls, get an honest assessment of your situation. That means know all of your bills, not just your debts. As part of the negotiating process, you will not be allowed to use any type of credit. That means no credit card usage, not applying for new loans until your situation improves, nothing of the sort. You will need to create a budget and stick to it. If your budget only calls for $100 a month for food, that means you can only pay $100 for food. Start finding ways to cut expenses, get on public aid if necessary, use a slower internet connection, lose the cable bill, get rid of the cell phone, bring lunch to work. If you are serious about getting out of debt, these are some of the things that you need to do.
why are so many americans not smart with money?!? budget, save, invest... dont borrow what you cannot pay back. have an emergency fund so you can pay your expenses if you lose your job for a few months... it's not that hard!
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loanold loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
I don't know your whole story fella, but I don't ever suggest debt consolodation. Give www.daveramsey.com a look, and go to Barnes and Noble and rea his book for free. Next you need to make a budget, find out where the bleeding is going. I suspect you need a smaller/older car. Along with a second job. But try the "snowballing" of bill pay off that Dave does. It is tremendous.
A consolidation loan is the worst thing you can do. I take it you already have a job, so If I were you, I would get a part time job and use that money to payback your debts. This may take a while but atleast you know that the money is going directly to the company and not in somebody else's pocket.
If you have been looking for some great ideas, Here is the place you should have a look.http://homeloan.online-assistant.info/bad-credit-home-loan-va.html