Dec
06
debt consolidation?
By
Nicole h asked:
Hello all, I have a question regarding debt consolidation. I have about 15k worth of debt and have tried applying to two companies for a debt consolidation loan and was denied both times. I thought about trying what one of the other posters suggested , writing to the individual companies threating a voluntary bankruptcy order. I have about 10k in the bank, but I don’t want to borrow from that lender because I wouldn’t be able to use the money in my account. My credit is only good. What other options do I have? Thanks
Hello all, I have a question regarding debt consolidation. I have about 15k worth of debt and have tried applying to two companies for a debt consolidation loan and was denied both times. I thought about trying what one of the other posters suggested , writing to the individual companies threating a voluntary bankruptcy order. I have about 10k in the bank, but I don’t want to borrow from that lender because I wouldn’t be able to use the money in my account. My credit is only good. What other options do I have? Thanks
3 Comments
December 10th, 2008 at 4:54 am
First thing, you do not need a debt CON-solidation loan. That fools you into thinking that debt is the problem when i is really just the symptom. The problem is the behavior that got you into debt. I know because I did it too, only with a lot bigger number than you. I will say that I am a huge fan of Dave Ramsey – I’ll let you do your own research on his website.
First thing is: you must get on a budget and determine how much money you can throw at your bills each month. Stop investing until your bills are paid. Have a yard sale. However you can scrape up a dollar within legal means, do it.
Here is what I would do:
1) I would take $9K out of savings, leaving a $1K Emergency Fund
2) I would pay off debts from smallest to largest, regardless of the interest rate
3) I would then rebuild my savings to cover 3-6 months of household expenses.
After that, it gets fun when you get to keep your money and get rich.
December 13th, 2008 at 4:50 pm
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan allows you to condense your monthlyold loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
December 15th, 2008 at 2:16 am
If you have 10k in the bank, why not use half of it on your debt. That would make things much more manageable.
Also, a good resource is…
Good Luck.