Tell Me, What Is The Best Debt Advice?

DON'T GET ANY MORE DEBT! DUH

Well Pizzazz Girl does have a point there. Getting a loan to pay off your other debts is not a very good idea. It doesn't really get to the heart of the matter--which is borrowing debt--and it pretty much leads to an endless cycle of borrowing and borrowing.

so are you saying caffeinatrix that i should not get myself a home equity loan? my husband and i have established a formidable amount of equity on our home and we are thinking of using this amount to pay off our bills that have fallen behind on payment. the income both of us are making isn't enough to pay off the loan. it's close to $15k and we still have to put food on our table for our kids of course.

please help.

Hi Nora. Well, I personally would discourage you from obtaining an HEL. It would allow you to put your house at stake, especially if you fell behind on that particular payment. Also, it doesn't necessarily guarantee that you will obtain the full amount of your home's equity. Your mortgage lender will still have to compute the house's market value and obtain a certain percentage from it (around 50-80%), and subtract what you currently owe from the house. Lenders also take other factors into consideration such as your income, credit report, expenses, and other factors.

I suggest that you can look for other options elsewhere. Your loan amount qualifies you for a settlement, and that actually will allow you to get rid of the credit card debt in the soonest possible time.

The answer to the question , what is the best debt advice, lies in the consumers debt problem type, the consumers financial situation, the consumers creditors, and the consumers soon to be debt (relief) solution kind.

pls tell me the best debt advice that i need right now. my partner just left me and i am liable for a thirty thousand dollar debt. i have a limited means of income and i cannot make the payments all by myself. i have been told to file for bankruiptcy and i just might do it if all else fails. what should i do. 

Hi hank. Sorry it took so long for a response.

Certainly bankruptcy is one of your options but it should be the last resort to your situation, because what you can do is consolidate your debts. Given your current debt amount you may opt to settle it, so that you'll only be paying a portion of the amount due, instead of the entire balance.

Right, and it will depend on arrangements between your creditor and the debt settlement company that you hire on how much they'd chop off from your current balance. It may also take a year to three years before the debt would be completely settled.

What is the best debt advice for someone with personal loan debt through Citifinancial? My interest rate is through the roof and I owe $8,000 right now (roughly).

Any ideas?