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Debt Consolidation Loans worth it?

Sharla - 2007-12-28 07:29:29 - Personal Finance

I've got about 6k in credit card debt, should I look at consolidation loans?

Best Answer:

Its worth looking into - just be careful of the interest rates and charges involved. Try your bank; or a site with a bunch of companies like http://best-loans.ws/debt_consolidation_loans.html and compare whats offered...

Answers:

i've heard that these can be helpful, but not when you've paid it off and it's on your credit.....i feel your pain!

This is the worst thing you could ever do. The easiest thing to do is get a part time job and pay off the debts that way. Call the credit card companies and set up a payment plan. Debt consolidators don't do this for free, so please save your money.

Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy. http://best-loans.awardspace.com/Loan-Consolidation.htm Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.

Its worth looking into - just be careful of the interest rates and charges involved. Try your bank; or a site with a bunch of companies like http://best-loans.ws/debt_consolidation_loans.html and compare whats offered...