Consolidating debt
- Thread starter India08
- Start date
dbachick74
Member
Hi India08,
Depending on your long and short term goals, I would not recommend using a service at all. I say this because alot of times, potential creditors view using a consolidation service such as Consumer Credit Counseling, Ameridebt, CreditGuard, etc. as negative. They feel that if you cannot manage your finances without intervention then you are a higher credit risk. I have actually heard that it has almost the same impact as a bankruptcy. With that being said, this is not something you want to do especially if you are looking at financing any major purchases anytime in the near future like a house or car. Your best bet, if and only if you are very serious about this, would be to get a loan from your bank to pay off the debt. The reason I say you have to be serious about it is because what often happens is that people get the loan to pay off their debt and because everything now has a 0 balance, they feel as if they can spend here and there, and then end up running up all of their balances again. So then they have the consolidation loan payment, as well as, all of the same bills all over again. If you question your resolve at all, then I would suggest paying the debt off one account at a time. Most financial advisors recommend paying off higher interest debt first. I personally prefer dealing with smaller balances so that I can see some progress. HTH and I pray that it all works out for you.
Depending on your long and short term goals, I would not recommend using a service at all. I say this because alot of times, potential creditors view using a consolidation service such as Consumer Credit Counseling, Ameridebt, CreditGuard, etc. as negative. They feel that if you cannot manage your finances without intervention then you are a higher credit risk. I have actually heard that it has almost the same impact as a bankruptcy. With that being said, this is not something you want to do especially if you are looking at financing any major purchases anytime in the near future like a house or car. Your best bet, if and only if you are very serious about this, would be to get a loan from your bank to pay off the debt. The reason I say you have to be serious about it is because what often happens is that people get the loan to pay off their debt and because everything now has a 0 balance, they feel as if they can spend here and there, and then end up running up all of their balances again. So then they have the consolidation loan payment, as well as, all of the same bills all over again. If you question your resolve at all, then I would suggest paying the debt off one account at a time. Most financial advisors recommend paying off higher interest debt first. I personally prefer dealing with smaller balances so that I can see some progress. HTH and I pray that it all works out for you.
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