Debt Consolidation

B00STED4V · 09-05-2008, 07:54 AM

Is Debt Consolidation a bad thing to have on your credit?

tx3nc · 09-05-2008, 08:20 AM

I don't know.

What advantage would it have over just paying the loans off?

**ReyRey** · 09-05-2008, 08:22 AM

well, my bff got her debt consolidated and it saved her a shit ton of money

i don't knwo what it does to your credit though

FreeBird · 09-05-2008, 08:24 AM

moves debts with higher Interest rates into one with a lower one, and allows you to manage 1 bill or 2 bills a month instead of a whole bunch... as for hurting your credit im not sure it would, and if it did itd be one of those puney 6month digs into it....

also if you actually can reduce the ammount of money you "would" have paid significantly (conditionally in your eyes of course) then the money you save > the hit to your credit

tx3nc · 09-05-2008, 08:24 AM

Quote:

Originally Posted by ReyRey

well, my bff got her debt consolidated and it saved her a shit ton of money

i don't knwo what it does to your credit though

It might have lowered her monthly, but what did it do the total payout she had to pony up?

**ReyRey** · 09-05-2008, 08:26 AM

we don't talk about finances other than "i'm poor"

B00STED4V · 09-05-2008, 08:26 AM

Quote:

Originally Posted by tx3nc

I don't know.

What advantage would it have over just paying the loans off?

Supposedly they (credit counseling company) talk to your cerditors and negotiate a combinded payment with lower interest rates and waive some fees and such.

Quote:

Originally Posted by ReyRey

well, my bff got her debt consolidated and it saved her a shit ton of money

i don't knwo what it does to your credit though

well I just looked some stuff up on it, and a management plan is better than just settleing. A Management plan is where they put everything in on one monthly payment... and apparently thats no where near as bad as settleing.

nEighter · 09-05-2008, 08:27 AM

reyrey how did she do it?

**ReyRey** · 09-05-2008, 08:27 AM

I think that's what they did...just made it one monthly payment

B00STED4V · 09-05-2008, 08:28 AM

Quote:

Originally Posted by FreeBird

moves debts with higher Interest rates into one with a lower one, and allows you to manage 1 bill or 2 bills a month instead of a whole bunch... as for hurting your credit im not sure it would, and if it did itd be one of those puney 6month digs into it....

also if you actually can reduce the ammount of money you "would" have paid significantly (conditionally in your eyes of course) then the money you save > the hit to your credit

yeah kinda what im thinking too

Quote:

Originally Posted by tx3nc

It might have lowered her monthly, but what did it do the total payout she had to pony up?

well you still have to pay off your debt in full when in a management plan, but they lower your interest rates and thats what saves you money.

nEighter · 09-05-2008, 08:29 AM

huh. I have a couple I would like to get into one and say CFT to em.. one check and I would be cool with it ebbery month.

FreeBird · 09-05-2008, 08:32 AM

Quote:

Originally Posted by OxMox

yeah kinda what im thinking too

well you still have to pay off your debt in full when in a management plan, but they lower your interest rates and thats what saves you money.

that would be the best rout for your credit i would think, maybe not your wallet, but like you said it probably wouldn't hit your credit nearly as bad cause you would be paying off all your debt...

B00STED4V · 09-05-2008, 08:36 AM

Quote:

Originally Posted by FreeBird

that would be the best rout for your credit i would think, maybe not your wallet, but like you said it probably wouldn't hit your credit nearly as bad cause you would be paying off all your debt...

well you still have to pay off all of your debt if you do a management plan, they just make it easier to do.
If you settle your debt with a credit counseling company then you don't have to pay off your full debt (only like 50-60 percent of it), but it hurts a hell of a lot more on your credit than just doing the management thing.

I need to talk to Jess about possibly doing a management plan, or looking into them a little more. If we can get rid of all these interest rates, shit would be much better.

FreeBird · 09-05-2008, 08:38 AM

Quote:

Originally Posted by OxMox

well you still have to pay off all of your debt if you do a management plan, they just make it easier to do.
If you settle your debt with a credit counseling company then you don't have to pay off your full debt (only like 50-60 percent of it), but it hurts a hell of a lot more on your credit than just doing the management thing.

I need to talk to Jess about possibly doing a management plan, or looking into them a little more. If we can get rid of all these interest rates, shit would be much better.

great idea

fantasticle great grand wonderfull plan

tx3nc · 09-05-2008, 08:40 AM

Quote:

Originally Posted by OxMox

Supposedly they (credit counseling company) talk to your cerditors and negotiate a combinded payment with lower interest rates and waive some fees and such.

I wouldn't trust them. But I've never had dealings with a CCC either. My suspicion is that a CCC is just another branch of a blood sucking credid card company.

Quote:

Originally Posted by OxMox

well I just looked some stuff up on it, and a management plan is better than just settleing. A Management plan is where they put everything in on one monthly payment... and apparently thats no where near as bad as settleing.

Maybe, or maybe not, if they extend the term of your loan to the point you end up paying more overall.

Everyone has to look at the deal offered and be sure you can live with it. Try to look at the total picture to be sure it's what you think. The danger in this idea is getting a lower monthly, and then blowing the savings on building up more debt. A definite no-win.

My recommendation would be to go with the 'Debt Snowball' method.

Debt-snowball method - Wikipedia, the free encyclopedia

Flash! · 09-05-2008, 09:06 AM

Quote:

Originally Posted by tx3nc

I wouldn't trust them. But I've never had dealings with a CCC either. My suspicion is that a CCC is just another branch of a blood sucking credid card company.

I always had that feeling, too.

I keep hearing ads for those companies on the radio and it always makes me wonder... if they're not making money off you somehow, how are they paying for those ads?

PS Oxy: Consolidating your garage might be a good step towards consolidating your debt.

tx3nc · 09-05-2008, 09:15 AM

Quote:

Originally Posted by Flash!

I always had that feeling, too.

I keep hearing ads for those companies on the radio and it always makes me wonder... if they're not making money off you somehow, how are they paying for those ads?

The Force is strong with this one.

**madmatt** · 09-05-2008, 09:28 AM

Use the Snowball Oxbox

min payments on EVERYTHING but the highest rate, every other dollar to the highest rate. Once its paid off, move on to the next, and the next and the next, etc etc

Quote:

Originally Posted by Flash!

PS Oxy: Consolidating your garage might be a good step towards consolidating your debt.

and plus MFing 1 on that right there. Especially that broken one. There is NO need for 2 performance cars when you are talking about consolidating debt. Harsh, but true bro.

FreeBird · 09-05-2008, 09:30 AM

ya know its hella fun getting into debt... its the getting out thats fail...

**stang_lover69** · 09-05-2008, 09:42 AM

big fat NO to a credit consolidation company. it does reflect badly on your credit reports and sometimes it looks as worse as a bancruptcy to some lenders. in all reality, those companies don't do anything for you that you can't do for yourself. usually, those companies are more for individuals that are in completely over their heads and are way behind on payments. those individuals get sucked in so they don't have to deal with creditors calling all the time. i doubt thats the situation that you're in.

if you have a large amount of debt that you're having a hard time with, try just applying for a consolidation loan at your bank. if you can't do that, try using the "snowball" effect. figure out how much you can pay on credit cards a month. start with your smallest bills first and put the largest payments on those and pay a little above minimum on all the rest. once you have the smaller ones paid off, take the money you were using to pay on those and roll over on another bill. once that is paid off, do the same for the next bill and so forth....takes some time and discipline but it'll be worth it in the end.

edit: and many others have suggested snowball before me.

tx3nc · 09-05-2008, 09:43 AM

Quote:

Originally Posted by madmatt

Use the Snowball Oxbox

min payments on EVERYTHING but the highest rate, every other dollar to the highest rate. Once its paid off, move on to the next, and the next and the next, etc etc

Close, Grasshopper. But you organize them according to outstanding balance and start with the lowest first. You get early win that way and it encourages you to keep going. The interest doesn't matter so much because soon you'll be paying double and triple payments on the big debts.

tx3nc · 09-05-2008, 09:45 AM

Quote:

Originally Posted by stang_lover69

edit: and many others have suggested snowball before me.

Also, get a book by Dave Ramsey called Financial Peace. He's got a web site too. Has a lot of good advice.

**madmatt** · 09-05-2008, 09:48 AM

good thread
I love money threads
always find great GREAT advice

09-05-2008, 07:54 AM	#1 (permalink)
B00STED4V Caution: Pees Everywhere When Drunk Join Date: Dec 2005 Location: Ray-Jay Posts: 20,752	Debt Consolidation Is Debt Consolidation a bad thing to have on your credit? __________________

09-05-2008, 08:22 AM	#3 (permalink)
ReyRey The Giver of Blue Balls Join Date: Jan 2005 Location: Kansas City, MO Posts: 13,158	well, my bff got her debt consolidated and it saved her a shit ton of money i don't knwo what it does to your credit though __________________ Rey² ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A bitch might dress like a power ranger, but I need HELLP! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ IrishPrincessRey: Why am i so fucked up AllYorBase138: I'm fucked up too. AllYorBase138: Welcome to DarkMesaaaaaaaaa

09-05-2008, 08:24 AM	#4 (permalink)
FreeBird Red Bull gives you wiiiiings!!! Join Date: Aug 2006 Location: Margaritaville Posts: 14,782	moves debts with higher Interest rates into one with a lower one, and allows you to manage 1 bill or 2 bills a month instead of a whole bunch... as for hurting your credit im not sure it would, and if it did itd be one of those puney 6month digs into it.... also if you actually can reduce the ammount of money you "would" have paid significantly (conditionally in your eyes of course) then the money you save > the hit to your credit __________________

09-05-2008, 08:26 AM	#6 (permalink)
ReyRey The Giver of Blue Balls Join Date: Jan 2005 Location: Kansas City, MO Posts: 13,158	we don't talk about finances other than "i'm poor" __________________ Rey² ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A bitch might dress like a power ranger, but I need HELLP! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ IrishPrincessRey: Why am i so fucked up AllYorBase138: I'm fucked up too. AllYorBase138: Welcome to DarkMesaaaaaaaaa

09-05-2008, 08:27 AM	#8 (permalink)
nEighter i <3 whalepenis Join Date: Feb 2006 Location: TwiLight zOne!! Posts: 12,096 Blog Entries: 1	reyrey how did she do it? __________________

09-05-2008, 08:20 AM	#2 (permalink)
tx3nc big or little, the size of the hole doesn't much matter Join Date: Jan 2006 Posts: 6,801	I don't know. What advantage would it have over just paying the loans off?

09-05-2008, 08:27 AM	#9 (permalink)
ReyRey The Giver of Blue Balls Join Date: Jan 2005 Location: Kansas City, MO Posts: 13,158	I think that's what they did...just made it one monthly payment __________________ Rey² ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A bitch might dress like a power ranger, but I need HELLP! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ IrishPrincessRey: Why am i so fucked up AllYorBase138: I'm fucked up too. AllYorBase138: Welcome to DarkMesaaaaaaaaa

09-05-2008, 08:29 AM	#11 (permalink)
nEighter i <3 whalepenis Join Date: Feb 2006 Location: TwiLight zOne!! Posts: 12,096 Blog Entries: 1	huh. I have a couple I would like to get into one and say CFT to em.. one check and I would be cool with it ebbery month. __________________

09-05-2008, 09:30 AM	#19 (permalink)
FreeBird Red Bull gives you wiiiiings!!! Join Date: Aug 2006 Location: Margaritaville Posts: 14,782	ya know its hella fun getting into debt... its the getting out thats fail... __________________

09-05-2008, 09:42 AM	#20 (permalink)
stang_lover69 *the polarbear conservation corps protects a classy* polarbear cutie meeting a polarbear homie straight outa compton and sharing klondike bars** Join Date: Jan 2005 Location: Gresham, OR Posts: 15,277 Blog Entries: 1	big fat NO to a credit consolidation company. it does reflect badly on your credit reports and sometimes it looks as worse as a bancruptcy to some lenders. in all reality, those companies don't do anything for you that you can't do for yourself. usually, those companies are more for individuals that are in completely over their heads and are way behind on payments. those individuals get sucked in so they don't have to deal with creditors calling all the time. i doubt thats the situation that you're in. if you have a large amount of debt that you're having a hard time with, try just applying for a consolidation loan at your bank. if you can't do that, try using the "snowball" effect. figure out how much you can pay on credit cards a month. start with your smallest bills first and put the largest payments on those and pay a little above minimum on all the rest. once you have the smaller ones paid off, take the money you were using to pay on those and roll over on another bill. once that is paid off, do the same for the next bill and so forth....takes some time and discipline but it'll be worth it in the end. edit: and many others have suggested snowball before me. __________________ The Dond (\__/) This is bunny. Copy and paste bunny (='.'=) into your signature to help him gain (")_(") world domination.

09-05-2008, 09:48 AM	#23 (permalink)
madmatt suffers from cracking due to shrinkage Join Date: Jun 2004 Location: Riding shotgun with Stig Posts: 24,966	good thread I love money threads always find great GREAT advice __________________ Matt

09-05-2008, 09:52 AM	#24 (permalink)
Flash! I <3 Cox Join Date: Feb 2004 Location: MY OWN FUCKING HOUSE in a tourist infested swampland aka Orlando Posts: 18,204