Debt consolidation?
if i have k in debt on one credit card how low could my monthly payments possibly be if i did debt consolidation? how many years would my credit be affected from doing a debt consolidation?
can i expect to see affordable monthly payments?
when is it too late to do debt consolidation?
Tags: credit card, Debt Consolidation
Debt consolidation means you are taking 2 or 3 credit cards, and "consolidating" them into one loan. Preferably you would take out a personal loan at an interest rate much lower then the rate your current cards are.
By not paying 3 minimum payments, you are now only paying one payment that is less the the 3 minimum payments.
What you need to do is either locate a new credit card with a much lower interest rate, or go to a bank and get a new loan to pay this off.
Just be aware of a major trap that many people make. STOP USING CREDIT until you get this loan paid off. I’ve seen many people go this route, only to once again charge up their now-empty credit card. Then they are twice the amount in debt, and end up filing for bankruptcy.
A debt consolidation as the name implies consolidates debt so it doesn’t apply to your situation. If you are thinking debt settlement or debt management those are the things that will affect your credit … 7 years. You can try to negotiate a lower rate on your interest but there’s nothing that’s going to eliminate or reduce the amount you owe short of bankruptcy or settlement and you don’t want to go that route. It shouldn’t matter how low your payments are, your goal should be to reduce that debt as quickly as you can. Try to find ways to increase your income and/or reduce your expenses. You didn’t get in debt overnight so you won’t get out that fast either. In the meantime, keep your payments current and don’t even think about getting a loan to pay your loans.
yes
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Consolidation-Basics.html