Home Equity Loan - Debt consolidation , how it works ?

Debt consolidation , how it works ?

I have about 5000 of credit card debt , I rent so home equity wont work (i rent) I cant really cut down on stuff , my FISCO went from 740 to 505 in a year (financial problems). So i need help getting help with debt consolidation with about 200-250 monthly payment (I cant afford that) so i need help picking good company that isnt going to screw me over. Also I have question how its working , do they actually pay off your debt and you pay them , because I dont want some of my CC Account closed , I want to keep 4/9 credit cards. What do you think about that ? P.S. Snow ball will not going to work.

Public Comments

Why will snow ball not work? How will rolling it into a new loan work? You need to increase your income, decrease your spending, or sell some stuff. Plain and simple. DON'T do debt consolidation. It just moves your debt around. It rolls high interest items AND LOW interest items into the same loan at a mid-range interest rate. It might lower your monthly payments, but that means it will take even LONGER to get out of debt. It also frees up all your lines of credit so you can simply run them up again! Finally, you often have to pay a loan origination fee. Call all of them and work out a payment plan and try to get your interest lowered or stopped. Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off. You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership. Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH. Go to the library and get "The Total Money Makeover". Read it and follow it carefully. Go check out Dave's website as well. Yahoo is blocking his site again, so take out the spaces in the following: www. Dave ramsey. com
you need to figure out which accounts are in collections and how much you owe total on the accounts. make sure you don't pay late on your open accounts! if you can afford $250.00 a month then you should work with the collection company themselves because the damage is already done, and there is no need for a middle man. try to pay your open accounts down to less than 50% balance so you can optimize your score. good luck to you
well to start, NO they do not pay off your bills and then you pay them...they call your creditors and try to negotiate with them on your behalf. Some places wont even touch you because you dont have enough debt..... Not sure how many cards your five thousand is spread over and that would be a factor too. Since you rent, is it possible that you could take in a roommate or move to a cheaper place to create a bit more cash flow>? ifyou cannot pay 200 bucks, a month, I am not sure how friendly the debt management services are going to be since even the not for profits charge a bit of money for their time/service. Granted, the amount is not much but it is something ALSO that you are in a debt management program will show up on your reports (thus dipping your score even furhter) Lastly if you sign up with one of them, it is mandatory that you close your accounts and/or agree not to create any new debt. If you are thinking of violating this agreement, you should not even sign the papers because the moment you open a new line of credit, your old creditors are perfectly within thier rights to renig on the agreements that they previously had with you. SO lets say that your credit card was negotiated to a payment of 90 bucks a month and then you get a new card, it might (probably will) go back up the original amount 200 (or whatever it was) and the agreements that you had with them will be voided and you can't blame them, why should they work with you when you are not able to pay for the bills that you currently have yet you want to make more bills. I dont think you are ready for debt consolidation if you still need to keep and use more lines of credit
Debt consolidation companies are available by the bundleful. But how do you really choose a debt consolidation company among the myriad of companies that exist today? Start with the yellow pages Yellow pages is a great place to begin looking for a debt consolidation service. Thumb through the yellow pages and you will find specific sections for debt consolidation as well as credit and debt counselling. Internet Internet is another great resource to find debt consolidation companies online. Search for debt consolidation and enter your city and state next to your search query to get local results or visit google local and then search for debt consolidation. Either way, you will get a handful of debt consolidation companies using the Internet. Since you cannot meet a debt counselor in person if you choose to deal with a company on the web, it makes sense to go to their office in person and leave with a good taste. If you feel the company is not to your liking, move on. Your local church Your local church is another excellent option for your debt consolidation search. As your friends who they would recommend for debt consolidation. Many might have considered debt consolidation and will help you find a debt consolidation company that can serve your needs. A referral is a good thing when it comes to debt consolidation.
Consolidate your credit card debt: There are various reasons why you should consolidate credit card debt. The most important reason is lower rates. If you manage to get a lower rate on a consolidation than what you are paying currently, it is better to consolidate. Whenever possible, you can consolidate credit card debt and save some money. Check the interest rates on every card and note them down. Now write down the new rate you can get. If it lesser than the average of the old rate, consolidating credit card debt will be beneficial for you. Don't include cards with lower rate in consolidation. http://www.freewebs.com/getanswer/CreditCardDebtConsolidationTips.html
Jake, You appear to have two problems you need to solve here. (1) Pay off your credit card debt and (2) Increase your credit score. You can accomplish both but it will take some time and debt consolidation is not the answer. Problem (1): You can pay off your credit card debt without getting a second job. You just have to know how and when to pay this debt. Debt consolidation does not help if you want to be in control of your finances. Problem (2): If you want to increase your credit score then don't close any more of those credit card accounts. When you close these accounts your debt to credit ratio increases and that gives you a lower score because you are seen as a high credit risk. Just cut up the cards and throw them in the garbage as soon as they come in the mail. Debt consolidation hurts your credit score because you are looked at as not being able to handle your finances. If you want to learn how to repair your credit and get out of debt I suggest you do a little bit of research first. Michelle Travis showed me how to get out of debt when I was facing 6 times the amount of debt you say you have. You should see what see has to offer. Her information is free and all the research has been done for you.
Hi, I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here: http://creditsolution.ez-mart.biz
Yup, you need at least $10000 in total unsecured debt to qualify. They also have problems with specific creditors, so its better you call and find out first. With the FICO that you have, you will not find a lender to give you another loan. Give up those cards buddy, unless you do that, you will always be stuck in a never ending cycle.