Are Debt Consolidation Loans A Good Idea, Or Should I Look Elsewhere?
Posted on
September 2, 2009
at
11:17 pm
okay here's the deal, i have roughly $23k in debt, i lost hours on my job, and i need to pay it off ASAP to get my credit back on good standing and i still have some saved up equity, and i am thinking of using the funds there to get all my debts paid off... are debt consolidation loans a good idea? should i do it? i really need to get this taken care of right away and i would appreciate it if you gave me your thoughts on it too so i can contact my lender ASAP
Posted on
September 3, 2009
at
1:27 am
they may seem like a good idea to me, but only for the short-term
Posted on
September 3, 2009
at
2:26 am
Are debt consolidation loans a good idea? No. Because by obtaining one, you are not eliminating debt. What happens is, you will have more debt--more interest rates, more fees, more things to pay, in the event that you are unable to pay for this particular loan. Robbing Peter to pay Paul, as they say, is not a very viable option in consolidating your debt.
Posted on
September 3, 2009
at
2:54 am
But I can still use my home equity loan, right?
Posted on
September 3, 2009
at
3:13 am
There isn't really a guarantee that you will be receiving the full amount of the equity on your home. The lender will first subtract that you owe from your mortgage, for starters. Aside from that your credit report, current salary, and expenses will be taken into consideration. So if that gets approved, you'll only be loaned around 50-80% of the original equity.
Posted on
September 4, 2009
at
2:04 am
what if i get an unsecured debt?
Posted on
September 4, 2009
at
2:18 am
Still not a good idea. You may be charged a higher interest rate, which you may eventually have difficulty paying. Also, that's another debt to add on top of your current list of payables. Getting a debt to pay off another debt, or a set of debts, always proves to be of more harm than good.So, are debt consolidation loans a good idea? No.Are there alternatives to debt consolidation loans? Fortunately, yes.
Posted on
September 24, 2009
at
9:40 pm
Are debt consolidation loans a good idea? The points have been reiterated here and I need not elaborate on them. And yes, you do have alternatives for these available. Your debt consolidation options include debt settlement, where you're given the opportunity to pay for less than the actual amount due, and credit counseling, where you'll paying for the debt for an extended period, with a smaller interest rate.
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