If I let my cards slip for a while I don't know how much they've hurt my credit. I need credit card debt consolidation, will they accept me if my credit cards have been beating up my credit a little in the last month or 2?|||Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn't as hard as you think. Just follow the plan.|||The easiest way to really answer this question is to call around. Different Debt consolidation places have different rules and rarely is it based on credit score. The norm is based on the amount of debt and your ability to pay those creditors on time. I would not recommend skipping payments just to see a debt consolidator it will hurt you in the long run more then just having the break of contract with the collectors.
Some debt collectors are non profit which means there won't be a fee to you if you don't make enough money to pay there fee and your collectors at the same time. You also have to be careful as some debt consolidators will not post your first payment to your collectors and will keep it as fee causing you a non-payment on your statements for the first month.
When I did this I used a company called CCCSN http://www.cccsn.org/ this one might be for my state specifically|||Debt Consolidation Help comes in many forms, from payment plans to loans to resolution strategies, so it is important that you spend some time prioritizing your own personal finance needs, concerns and financial situation before signing up for any debt consolidation help program.
The four primary concerns for most consumers are: i) monthly payment
, ii) time to debt freedom, iii) total cost, and iv) credit rating impact of the debt consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.
Since there are a variety of debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you. I will walk you through each, in turn.
Credit Counseling - Credit counseling, or signing up for a debt management plan ("DMP"), is a very common form of debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts 鈥?but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report鈥?and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy 鈥?or using a third party to re-organize your debts. This is typically a good form of debt consolidation help if you have lots of high interest credit card debt and just want a lower monthly payment.
Debt Settlement and Debt Negotiation - Debt settlement, also called debt negotiation, is a newer form of debt consolidation help that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years - so they are a short programs with low monthly payments that can save you the most money while avoiding bankruptcy.
It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Bankruptcy. The trade-off here is a negative credit rating versus saving money.
Debt Consolidation Loan - Many people think first of a debt consolidation loan when seeking debt consolidation help. Usually, this is reserved for home owners with equity in their homes that can be tapped to payoff other debts. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one or more loans for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt.
It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high鈥?but the monthly payment will be lower than other options and there is no credit rating impact.
Net-net: While there are many forms of debt consolidation help, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the debt consolidation help program and option that fits for you.|||To get a debt consolidation loan you need own property and the property need to have equity to serve as collateral for the loan. You also need to have good credit, not just a good credit score. But most people in debt have negative debt-to-credit ratios and credit-wise that warns potential lenders not to loan you money because you show that you owe more than you can reasonably afford to pay. Plus if you get the loan, you鈥檙e gonna pay back a lot of money and you can lose your home if you miss a loan payment! The good thing is that ican get you out of debt in about half the time and cost of a debt consolidation loan and without causing you to risk losing your home. i used debt settlement, they give you a lower monthly payment and cut your debt down by 50%. best choise by far. try debtfreeleague. i shopped around forever and i found they were the best company out.|||Do not pay someone for what you can do yourself. If your credit cards are already 2 months late, then more than likely the CC will start calling you with offers that will allow you to catch back up on them, they can possibly lower your interest rate, stop interest for a period of time, or offer you lower payments. Work with the CC company direct, they will work with you.|||Credit card debt consolidation can be an important part of the equation to cutting payments and getting debt free faster. Do your credit card debt consolidation research to pick the right path and pay down your credit card debt through credit card debt consolidation. Some online services can even get you in contact with credit card debt consolidation services that will help you find the best method of consolidation for your specific amount of debt.|||If you get a loan, then probably 750+ FICO and equity in your home.
if you do a service like debt settlement or credit counseling, then you don't need credit since it is not a loan.|||Do not do credit card debt consolidation. All they are doing is calling your credit card company and making payment plans with them....Just as you can do yourself without paying someone else to do it.|||I have similar situation with you. But, now they approve my application for debt consolidation. You should try to apply.|||if your credit cards are only 2 months late, you should be able to get a consolidation loan. dont let them go any further behind, though, because that's when it really starts hurting your credit.|||Debt consolidation is one of the few things you need bad credit to qualify for. With good credit you can't get it.|||you should absolutely not do this. if your credit is bad, consolidation will make it way worse in the long run.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment