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Just getting more and more behind on my bills....anyone familiar with consolidation loans??

Posted by on Jun. 3, 2010 at 12:54 PM
  • 6 Replies

How do you feel about them? Did you go a specific route or with a specific company for yours?



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by on Jun. 3, 2010 at 12:54 PM
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Momt24
by on Jun. 3, 2010 at 12:58 PM

I did this about 8 years ago. I have mixed opinions about it. It's good because of the fact that they pay off your loans so you are only having to pay one company and not have a bunch reporting you late to the credit agency. On the other hand. A lot of the times your payment will end up being more than if you just paid each thing individually. You can't miss a payment either. We finished it out but I personally wouldn't do it again.

NoraDun
by Platinum Member on Jun. 3, 2010 at 1:03 PM

Yea I understand!! I actually had one about 3 yrs ago and I was more then happy to get rid of it, but at this point I am getting so depressed with finances I just don't know what to do. I cry every two wks when Hubby gets paid and I can't pay this bill to cover this one or so on. Right now I am barely coming up with enough money to cover our ncessesities much less the other stupid bills we have! Its the only think at this point I truely stress over!!! I mean I hate being behind on bills with a passion. I really should find a job but by the time I pay child care I am sure it would be pointless plus I always wanted to be the one to raise my babies!! I just am so tired of the stress and tears shed b/c we can't make good financial decisions!!

Quoting Momt24:

I did this about 8 years ago. I have mixed opinions about it. It's good because of the fact that they pay off your loans so you are only having to pay one company and not have a bunch reporting you late to the credit agency. On the other hand. A lot of the times your payment will end up being more than if you just paid each thing individually. You can't miss a payment either. We finished it out but I personally wouldn't do it again.



www.cafemom.com/group/TTCorPregnant

RutterMama
by on Jun. 3, 2010 at 1:07 PM

Whatever you decide, just know that it isn't really a 'loan'. That they settle with the creditors and it WILL impact your credit very negatively. It would be to your advantage to contact each creditor and ask them about payment plan options, possibly lowering the interest rate, and even the total payoff if you settle with them. This WILL close all of the accounts, but you can begin digging out instead of keeping to go deeper.

I HIGHLY recommend spending $15 and purchasing Dave Ramsey's book "The Total Money Makeover". It will change the way you think about money!

babies

I'm a proud breastfeeding (but don't bash those who don't), circumcising for health reasons, pro-CIO, vaccinating, disposable diapering, pro-life, meat and chocolate eating, Southern Christian Mama!

Ashpatch
by on Jun. 3, 2010 at 1:08 PM

Its your best option just make sure the intrest rate is lower. call around to getthe lowest rate.

TD bank is good for consolidation loans.

ArmyWife5505
by on Jun. 3, 2010 at 1:12 PM

I've heard they're a "no-no"...... you should check out Dave Ramsey. He has some books and he's REALLY good. We are debt FREE because of him!!!!!!!

MommaBoop922
by on Jun. 3, 2010 at 1:17 PM

We did a consolidation loan a few years ago and are about to finish paying it off... We took out an general loan through Tower Federal Credit Union (they don't have the best customer service though) and we just took the money and paid off each card with it... It didn't affect our credit and they didn't have any contact with the creditors we did it all on our own... I think they are beneficial at times but on the same note its really hard to get them right now... I struggled to get a student loan this year because no one wants to give out money... It may help to try a budget and speaking with the creditors first before trying a lorn... I know its hard but timing is making things difficult right now... Good Luck and I hope it works out for you

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