Posted on
July 30, 2009
at
4:11 am
Reducing my debt as quickly as possible is my goal. However, I do not know where to start. I have all sorts of debts. Student loans, about $40,000. Credit card debts of about $30,000. That's all I can think of now. I have other debts to family and friends ..and yes, I'm still paying about $500/mo. on my car. I am a minimum wage earner. I seem to be paying just the interest of my debts. I'm thinking of debt consolidation. Bunch all my debts together-pay them off with a loan-then worry about repaying the loan later..is that a good idea?
Posted on
July 30, 2009
at
4:27 am
I'd discourage you from getting a consolidation loan mate--because there is no guarantee that you can sustain the repayment.It primarily depends on how much disposable income you have and if your debts are unsecured. I think your debts must be 30 days past due too, I'm not too sure about that though.Some of the lenders might also ask for a collateral for the loan. If you default on the payment, you might lose that collateral. So it's really a bad idea as of the moment. Why not try credit counseling instead or debt settlement?
Posted on
July 30, 2009
at
4:30 am
I agree with Paladin, debt settlement would help in reducing your credit card debts quickly because that amount can be negotiated down to at least half. You were thinking of debt consolidation loan right? I don't think debt consolidation loan lenders cater to that kind of debt. Especially if it is a federal student debt loan.
Posted on
July 30, 2009
at
4:38 am
Just to add to their objections to you obtaining a debt consolidation loan to reduce your debts quickly...how's your credit? I'm asking because if it is poor, they may not extend you that loan, -- or they may extend you that loan only they'd slap you with an interest rate that's higher than average.That's how some consumers lose their home. The made the mistake of tying that loan to a collateral, which was their home, and so when they missed their payments, they had to let it go.
Posted on
July 30, 2009
at
4:41 am
You know you can be systematic in reducing your different types of debt. I don't know what your definition of quick is..but tackle debts that have high interests first. Like your unsecured debts. Credit card. Have that debt negotiated by a debt settlement company.For your car, talk to your lender and ask for a new payment term. Maybe you can pay it longer or you can skip months and pay double..same with your student loans.
Posted on
August 17, 2009
at
12:01 pm
Good point Order. And now, with our economy still trying to rebound from the recession, taking out a home equity loan isn't an option for most people trying to find ways for reducing debt quickly. The real estate market is so bad that the majority of homes have lost significant value, and therefore many people have no equity left.
