Posted on April 23, 2009 at 8:10 am In this time of recession so many people have to leave their jobs and now they are in really bad situation. One of my friend has a lot of debt of different companies and she has no job . Now she is in critical situation. She took advice from a company which is in deal with Debt Consolidation Loans.They suggested her to go through Debt Consolidation Loan. So what should she do now? Need Suggestions please. Thanks a bunch in advance.

Posted on April 27, 2009 at 12:20 am This is a critical issue so need advice . So please suggest me which steps should be taken.

Posted on May 27, 2009 at 2:13 am Debt consolidation companies usually accept a client whose total debt, amounts to $2k minimum. Some even asks for $10k. There are other ways to pay off your friend's debts, I know you said that she doesn't have a job right now and therefore no income too, if your friend opts for debt consolidation, it means that he/she would be borrowing more money to pay off the original debts, plus she'd be paying off what she has borrowed for a longer period of time. Your friend can should consider credit counseling or debt settlement instead of getting a loan.Try filling out the form on top of this thread and get a free consultation.

Posted on May 27, 2009 at 8:23 am I do not think taking out a debt consolidation loan would be the best option for your friend. The lender will give her a loan to pay off her creditors right away, but then she has to start making monthly payments to the consolidator to pay the loan back. These loans are usually extended at a very high interest rate, and they may require her to attach collateral (property) to the loan to secure the debt. This really is never a good idea. Since she does not have a job at this time, it is likely that making a consistent (and possibly high) monthly payment may be very difficult for her. How much does she owe? Without a job I am assuming she can only afford a low monthly payment right now? If that is the case credit counseling may not be suitable for her either. Does she have any money in savings?  

Posted on May 27, 2009 at 8:30 am Yeah there's no way she'd get a debt consolidation loan if she's unemployed, unless it's at an extremely high interest rate.  If she's unemployed, I'd probably suggest talking to a bankruptcy attorney.  She can look into debt settlement, but I'd be careful because their fees are front-loaded and non-refundable, so if she figures out she can't afford it, then she'll have lost all that money.