Author Topic: Debt Consolidation? (Read 232 times)

moose · « **on:** April 26, 2004, 06:50:16 PM »

I'm curious about this; someone told me a while ago that they used some service online to merge all their credit card bills into one. I've got 3 payments a month now and I'm wondering if it'd be simpler to try one of these 'debt consolidation' companies out. Thing is that with all the spam i get about them, i think they're all crooks.

Anyone have some surefire info?

rabbidrabbit · « **Reply #1 on:** April 26, 2004, 06:51:11 PM »

They are not there as a community service....

Curval · « **Reply #2 on:** April 26, 2004, 07:43:13 PM »

Quote

Originally posted by rabbidrabbit
They are not there as a community service....

Yep. Check for hidden fees in the agrement. If they charge an upfront fee (for example), on top of the interest and principle payment you are making, factor that into the interest rate. Call it interest, call it a fee...either way you pay. In other words, that great interest rate you think you are getting may not be so great if you pay any other fees to do the deal.

In general it is a good idea to consolidate into one payment (particularly now while the rates are low..they ain't gonna stay that way forever). Do it at a bank though, not with some fly by night fleece artist.

Nash · « **Reply #3 on:** April 26, 2004, 07:50:29 PM »

They aint gonna do it for free. So you get the same debt as you have now, but pay more on top of that. I think if you were only worried about the convenience factor then you wouldn't be worried about the debt in the first place. DIY.

Gnslngr · « **Reply #4 on:** April 26, 2004, 09:26:21 PM »

this does reflect on your credit report. Some places look at debt consolidation as worde than bankruptcy. Just to let you know.

MJHerman · « **Reply #5 on:** April 27, 2004, 02:25:41 PM »

Roll all 3 credit card balances on to a line of credit with your bank and make payments on the line of credit. The PLC will (or should) have a much lower interest rate.

Admittedly, the prerequisites are (a) you have a line of credit and (b) have enough room on your credit limit.

gofaster · « **Reply #6 on:** April 27, 2004, 03:13:42 PM »

Screw all that. Do the balance transfer with 0.0% on the next offer. If its credit card debt, its an unsecured loan. Those debt consolidation places are a racket looking for suckers. They're supported by credit card companies that would lose out if the debtor filed bankruptcy so they want to string their cardholders along until they can get their money out of you.

edit: I'm guessing that the finance and interest charges are your motivation for consolidating your CC debt. Otherwise, it ain't worth the trouble. So, go with the no fee/ 0.0% interest offer if you get one. If you don't, just keep paying with separate invoices and quit charging stuff to your card.

Airhead · « **Reply #7 on:** April 27, 2004, 03:21:53 PM »

Debt consolidation only works if you have debt. If you have no debt there's nothing to consolidate. It don't take no CPA to figure that one out.