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Posted: Mon Jun 19, 2006 9:16 am Subject: Debt Consolidation Loan

I have accumulated large credit card debt over the past few months, I am still current and have good credit however I want a debt consolidation loan to get everything down to one low payment as opposed to several medium payments to free up extra spending money each month. I was also curious how this would affect the credit cards I would be getting the loan to payoff and how it would affect my current credit score. Also, it is like a signature loan where they give me a check for X amount or pay off the credit card companies and have that show up on my credit report? Is this a good move for the freeing up money or is this going to hurt more than help?

Posted: Mon Jun 19, 2006 9:30 am Subject:

TrentWichman

If you take a consolidation loan, you will have to pledge your property against the loan. In case, you default in making the payments, you might be at the risk of losing your personal property. Besides, you will have to pay the interests twice for the existing debt as well as for the new loan amount. I believe, a new loan won't be a good decision especially for paying off your past debts.

As you are comparing your options, try a consolidation plan to pay off your previous debts. This might be a better choice. You will be able to combine all your previous debts into one monthly payment at lower interest rates. This program will appear in your credit report showing all the accounts are getting paid off through this plan. Once everything is paid off, it will be removed from your file. This does not hurt your credit because your payments are done in anyway. Credit scores are hurt when the accounts are delinquent. Prefer a consolidation program rather than taking a new loan and therefore, multiplying your total debts. Review the benefits you will be getting in the consolidation program.

http://www.debtconsolidationcare.com/benefits.html

Guest · Posted: Mon Jun 19, 2006 9:35 am Subject:

I suppose what I'm really looking for is more like a signature loan for the amount of my debt to pay off my current debt. Is this a common practice or is this something that I would have to search high and low for a bank that would do this?

Posted: Mon Jun 19, 2006 9:44 am Subject:

Personally, accumulating more debt to pay off debt is a HUGE no no.

Trent Wichman · Posted: Mon Jun 19, 2006 10:04 am Subject:

The intention here is to get the loan to pay off the accounts and then close the accounts. This being said, is this still a horrible idea and also what are some good companies I could look into that give these kinds of loans?