Posted on
April 1, 2009
at
10:37 pm
Debt Consolidation can be a good thing.When credit card companies raise your interest rates when you have never been late. Ask this question why should we pay a higher interest rate for doing what we are suppose to? I believe if they can raise our interest rates than why can't we lower them? When you can drop your interest rate in half, and pay the same payment that your paying now you are paying your debt down faster. Maybe if everyone was doing this than the credit card companies would stop raising our rates! If your credit to debt ratio is over 60% your really not going to take that hit on your score. Because you will pay your credit down faster and your debt ratio will supersede the damage if any.This is just my opinion thank you.
Posted on
May 19, 2009
at
7:56 am
I agree, debt consolidation for some can be a very helpful tool. Typically, if you have multiple creditors, high interest rates, or a high amount of unsecured debt, one of the three debt consolidation options that are popular today may suit your needs. They are the following- Debt consolidation loan: the debtor is extended a loan so that he or she can pay off his or her unsecured creditors and in turn make one monthly payment to pay off the loan. Keep in mind that the interest rates on these loans can be very high, and it may take a very long time to pay the loan off. Credit counseling: the debtor makes one simple monthly payment to the credit counseling agency, who in turn disperse payments to each of that person's creditors once per month. In the menatime, the credit counseling agency works with the creditors in an attempt to lower the interest rate on each card. Debt settlement: the debtor makes one simple monthly payment into an escrow account instead of dispersing monthly payment to each of his or her creditors. As funds accumulate in that account, the debt settlement company is negotiating with each of the person's creditors to lower the principle amount of debt that the person owes on each account. As soon as there is sufficient funds, the settlement company will pay off the creditor (typically between 40-60% of the total debt) to settle the account.
