RP: Debt Consolidation?

Has anyone done it?

If you have, what are the pros/cons?

Are you talking about for credit card debt?

I don't know about specific companies, but I believe it should really only be used as a last resort because it will be reflected on your credit report, and I think there are often hidden fees, etc. You are much better trying to call your individual cards and getting them to lower your interest rates or transferring balances to a 0% card if you can, and then coming up with a plan to pay them off in a particular order. There are a several schools of thought on how to do this - highest interest rate first,smallest balance first to feel accomplished, etc. You have to do what's best for you.

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Posted by kslmgbuggie

i worked for one of those companies in college & it was bad news. Your best bet if your credit is still good is to get a debt consolidation loan. Pay off all your cc's with the loan, & make sure to close your cc accounts after they have been paid off. Make sure the interest rate for the loan is lower than your rates on the cc's. Keep only 1-2 cards for emergencies. Then you just pay down the loan @ a lower interest rate. Once you have paid down the loan for at least a year your credit rating will improve (it will actually improve month to month because you will have more available credit) then you can refinance the loan for an even lower rate. If you refinance be sure to get a shorter term, i.e. if you have 36 months left on the original loan refi for 36 months. Your interest rate will be lower, & you wont be extending the loan out for a longer period of time. Any questions about consolidation or credit in general FM me as I work in the lending industry.

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can u recommend a lender and also, are loans like this available for someone who has great credit but just wants to consolidate?

I would recommend going with whomever you have your checking/savings account with. You can also go to www.lendingtree.com where you will get multiple quotes from multiple financial institutions. The only disadvantage about the lending tree is each quote you get will be an inquiry on your credit report which will reduce your credit score 2-4 points for each quote. The better your credit rating the better interest rate you will get.

Once you do consolidate call up the cc's that you decided to keep & ask for a lower interest rate. They are more likely to lower your rate drastically if you have a zero balance.

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Posted by Jess125483

can u recommend a lender and also, are loans like this available for someone who has great credit but just wants to consolidate?

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Posted by kslmgbuggie

i worked for one of those companies in college & it was bad news. Your best bet if your credit is still good is to get a debt consolidation loan. Pay off all your cc's with the loan, & make sure to close your cc accounts after they have been paid off. Make sure the interest rate for the loan is lower than your rates on the cc's. Keep only 1-2 cards for emergencies. Then you just pay down the loan @ a lower interest rate. Once you have paid down the loan for at least a year your credit rating will improve (it will actually improve month to month because you will have more available credit) then you can refinance the loan for an even lower rate. If you refinance be sure to get a shorter term, i.e. if you have 36 months left on the original loan refi for 36 months. Your interest rate will be lower, & you wont be extending the loan out for a longer period of time. Any questions about consolidation or credit in general FM me as I work in the lending industry.

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Don't close all of your CC accounts after you pay them off. You'll actually HARM your credit that way. In the very least, keep open the account you've had the longest. Length of credit history is an important factor in your credit score. I learned that the hard way.

my fh used them

https://www.moneymanagement.org/Members/index.asp

yes they do charge a monthyl fee but he was so out of hand with his credit cards the companys were not that willing to wiave any fees. so he wen to the debt managemnet and they got the cards to lower the interst to 0 or really low....and he is alomst paid off after a year & half. which is great, i think he owed 7k....

it went never even mentioned wehn we got a mortgage a few motnhs ago & his score has gone up since he started it.

its diifferent fgor everyone know you have to see if your credit comp.