Posted on June 5, 2009 at 12:37 am Hello All Member,In such critical time so many people are in debt and want to move out of it. One of my friend also has debt and she is in such critical situation. Though she has a good job but she can not save as much money because so much she has to pay to creditors. So debt consolidation is a better option for her? Need Advice

Posted on June 5, 2009 at 12:58 am It depends on your situation but if you have more than one creditor and you have over $2k of unsecured debt, you may qualify for a debt consolidation program. Your other options are credit counseling and debt settlement. The requirements are pretty much the same, except that with those two, you would not have to borrow more money to pay your debts. Since you have not disclosed your exact financial situation, which is understandable, why not fill out one of those forms and speak with a financial expert for free.

Posted on June 5, 2009 at 1:33 am Debt consolidation may be a good idea for your friend if she chooses not to pick the bankruptcy card. It would allow her to make afforable payments to all her creditors for an extended period of time, for a lesser interest rate as well.The term "debt consolidation" actually can mean a lot of things, and you friend has various options to consider. Echoing with what citizenoftheplanet said earlier, she can opt to settle her debts, or undergo credit counseling. She can also avail of a debt consolidation loan.

Posted on June 5, 2009 at 6:52 am Debt consolidation can be risky, though. Typically these loans are attached to the individual's home equity. If your friend defaults on her payments on that, she just might lose her home. That's because her debts will be secured by her home equity. It may also take her longer to pay back the loan, especially if it's a variable rate loan. These types of loans can change rates according to the dictates of the market, and that can be very scary, as you may end up not being able to afford what you need to pay each month because the rates vary.

Posted on June 5, 2009 at 8:00 am I agree with Purple Cow, turning an unsecured debt into a secured debt is never a great idea, particularly if you are having financial difficulty to begin with. As previously mentioned, debt settlement and credit counseling may be better options depending on your circumstances. However, to correct citizenoftheplanet, the requirements for the two programs are not exactly the same. For example, most debt settlement program will not qualify someone who owes less than $10 K in unsecured debt, whereas credit counseling agencies may work with someone who owes as little as $2,500. Furthermore, there are some creditors who do not work with credit counseling agencies who may negotiate with settlement companies, and vice versa. So who you owe would also have an effect on whether or not you would qualify for one of these programs.

Posted on June 6, 2009 at 3:05 am Thanks to ALLShare your opinion here ...

Posted on August 14, 2009 at 2:49 am Debt consolidation IS a good idea. Better than filing for bankruptcy.