Debt Consolidation

[Knotical]

My wife and I are looking at options for consolidating our unsecured debt and wanted to get some input. Has anyone here used a specific debt consolidation service with much success, or would it be better to go the personal/signature loan route? We have balances on 3 cards we would like to consolidate with the anticipation of aggressively paying off whatever solution we find.

 

[civilwarbuff]

Have you heard of Dan Cilia of Financial Issues? He is a christian financial adviser and has dealt with that exact question many times. You can actually call and ask questions during his show (Mon-Fri 0900-1200 EST). You can get the Financial Issues app (FISM) at apple/google store.

 

[reba]

Most of us dont handle consolidating very well ... We end up with extra 'monthly ' cash... which sadly does not go to the balance of the new loan...
Suggesting checking the interest rates... they really very...
Talk to your selves about the hows and whys you owe one 3 cards

 

[civilwarbuff]

Most of us dont handle consolidating very well ... We end up with extra 'monthly ' cash... which sadly does not go to the balance of the new loan...

That is Dan Cilia's response also; he usually reccomends attacking the card with the lowest amount owed (regardless of interest rate) with everything you can afford until it is paid off then moving onto the next lowest card. Every card that gets paid off frees money to attack the next card. However, it does take discipline to not simply spend the freed up cash......

 

[Knotical]

We have thought of that approach, however, if we got a personal loan, or possibly even did a refi on our house we could most certainly get a much better (simple interest rather than compound) rate, which would allow us to pay the amount of faster.

 

[jasonc]

I have done the wrong thing but I have also paid off alot debt as well by.simply attacking one bill at at time.it's like they want us in debt.try fixing appliances and or water heaters etc

 

[iLOVE]

My wife and I are looking at options for consolidating our unsecured debt and wanted to get some input. Has anyone here used a specific debt consolidation service with much success, or would it be better to go the personal/signature loan route? We have balances on 3 cards we would like to consolidate with the anticipation of aggressively paying off whatever solution we find.

Honor the Lord with your income: tithe at 10% gross and watch Jesus manifest Himself to you. Remember who Jesus is (He loves you) and what Jesus has done (He gave Himself for you). Gal. 2:20-21

The scripture teaches us that all things were made by Jesus. He made the day and the night before He made the sun and the moon. Jesus does not need a source (a bank). He speaks and it becomes. Don't forget about all of His benefits (Psalm 103:2). Your only solution must be, "I live by the faith of the Son of God, who loved me, and gave Himself for me (who Jesus is, and what Jesus has done). Gal. 2:20-21 - Romans 8:32

Ezra 7:10

 

[KevinK]

Yes, I have used a debt consolidation service with good result. Here's the deal: those services usually have pre-existing "understandings" with credit card companies especially, and can negotiate a lower interest rate if you consolidate your debt with them. For a fee, of course, though you end up saving in the long run. The downside is that most people don't realize you can actually negotiate a lower rate yourself if you're willing to deal with the credit companies one-on-one and one-by-one. Basically, it's "I'm having trouble paying back what I owe you, so if you don't extend a lower rate you might not get it back at all". Some companies will play, some won't. Do you have the time and willingness for aggressive negotiating is the question.

 

[WIP]

At one time in our lives we were paying on two vehicles and a contract for deed on our home. This was when interest rates were still hovering in the 10% and higher range. Back in about 2003 (don't remember the actual year) when the interest rates came down to below 6% we consolidated our loans using our home equity to obtain a 5% rate on a 12-year note. After consolidating the resulting payment was about half of what the total of the three payments were previously. I took additional advantage by continuing to pay the same amount of my previous total payments toward the home equity loan and paid it off in less than five years, saving thousands in interest and becoming debt-free before we were 50. It was probably one the smartest moves I've made despite the risk of using my home to pay for two automobiles. Once the vehicles were paid off, I continued and still continue to deposit the equivalent of the vehicles' original loan payments into a savings account. In 2009 I decided to trade in my vehicle and I had the cash on hand to pay for it without borrowing money, which saved me thousands in interest. I just traded again last fall and again, using this tactic, I paid cash for the difference.

 

[Knotical]

Yes, I have used a debt consolidation service with good result. Here's the deal: those services usually have pre-existing "understandings" with credit card companies especially, and can negotiate a lower interest rate if you consolidate your debt with them. For a fee, of course, though you end up saving in the long run. The downside is that most people don't realize you can actually negotiate a lower rate yourself if you're willing to deal with the credit companies one-on-one and one-by-one. Basically, it's "I'm having trouble paying back what I owe you, so if you don't extend a lower rate you might not get it back at all". Some companies will play, some won't. Do you have the time and willingness for aggressive negotiating is the question.

In the past I did a version of what you mention. We had some cards that we could no longer continue paying on and I made the decision to just pay the important things and let the cards go. Eventually, I was getting calls from the card companies and their collection agencies. Ultimately I was able to settle some of them for a little over half of the total balance. There was one that ended up going to a judgement.

I really don't recommend anyone going through that, and don't to again, which is why I would like to find a better way of consolidation. It is too early to do a refi on my house, plus there is not enough equity in it to use. I will try contacting the card companies to see if they will drop the rates, otherwise I may look at some personal loans.

 

[stovebolts]

Before you make a decision, please check out https://www.daveramsey.com

My Mom was dirt poor and what Dave teaches is about the same my Mom taught me. ( basics anyway, but it helped us manage our wealth one we actually started to accumulate wealth)

My wife and I have applied these Principles and we paid our house off in 2008 ( i think) with a combined income of less than 65,000.

We now also have rentals and the only debt we have is my car.