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 Posted: Mon Jan 31, 2005 5:38 pm Subject: Debt consonlidation?? |
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I am not sure what to do. I am 23 and in the army. I recently got married and my wife has various loans which she is claiming bankruptcy for. I however have to pay the student loans for her from what I understand. On top of my two car loans, one credit card and monthly bills i.e. electricity, water etc. Can this program help me? I am negative each month and don't want it to get worse.
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utopia70
Joined: 31 Jan 2005
Posts: 1
Debtcc Points: 108
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| Posted: Mon Jan 31, 2005 10:13 pm Subject: RE: |
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Hi Utopia70,
Welcome to the debt consolidation care forum.
Debt consolidation deals only with unsecured loans like credit card debts, personal loans, bounced checks, medical bills etc.
| Quote: | | I however have to pay the student loans etc for her from what I understand. On top of my two car loans, one credit card and monthly bills i.e. electricity, water etc. |
Amongst all the loans that you have mentioned, you can consolidate your credit card debts and monthly bills, as debt consolidation only deals with such loans. The car loans you have mentioned cannot be consolidated, since they fall under the category of secured loans.
As far as the student loan is concerned, in most cases a creditor does not allow to consolidate or come to any settlement plans for such loans except eliminate the late fees and interest rates.
| Quote: | | I recently got married and my wife has various loans which she is claiming bankruptcy for. |
If your wife is undergoing other debts which you have not mentioned in your note, please check out whether it is secured or unsecured loans. Debt consolidation can be highly beneficial if you are on a look out to consolidate both your debts.
However, you can try for debt settlement before finalizing on bankruptcy. Proper negotiation with your creditors may help you to get a good solution to your debt problems. If you can pay some lump sum amount to your creditors or try and clear up your debts within 6 months, there is a possibility that your late fees and interest rates will be waived off. Remember creditors will be more interested to work with you if you can provide them with some instant cash.
Bankruptcy should be avoided by all means. It not only hampers your credit score but also tags you as a bankrupt. Your status in the credit report for the next 10 years will show you as a bankrupt. This will make you a bad applicant for future job prospects and loans.
We would appreciate more frequent participation from you and hope you will share your experiences and insight with other members in the forum.
Regards,
Jason
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Jason
Customer Care Dept
Joined: 28 Oct 2004
Posts: 597
Debtcc Points: 3945
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| Posted: Sat May 10, 2008 4:51 am Subject: Debt Consolidation or Self Repayment Plan |
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Hello Utopia,
From your post it seems that your wife has filed for bankruptcy. If it gets approved then her credit score will fall significantly and she will not be able to apply for any other loan for 10 years.
In such a condition, you should take measured steps as for the next 10 years you are the only person who can apply for further credit or loans. Hence, in your present situation you can take the steps given below:-
1. Go for Self Repayment Plan
In this case you can do the following things:-
a) Make a list of all forms of debts that you have accumulated such as credit cards, personal loans, secured loans, etc. Also include different rate of interests and minimum payment amounts associated with each one of the loans and credits.
b) Then list down your total monthly income on one hand and the essential monthly expenditures on the other. Are you still going negative in your payments? If yes, then
i) Curtail your extra expenses and also
ii) Find a part-time job to increase your income
c) Try to pay off your debt accounts one-by-one. Now you have to prioritize the accounts that you want to pay off first.
2. Approach a reputed company and take help of their debt consolidation services
Debt consolidation helps you to erase all sorts of penalties and decrease the rate of interest accumulated on your debt. In addition to this, you will also get free budgeting tips from the professional counselors of the consolidating firm and the disturbing collection calls will stop (as all sorts of communication with you will be routed through an attorney).
Debt consolidation program will help you to save significant amount of money as it will lower your rate of interest.
However, debt consolidation has some downsides too. Negative entry is made in the credit report where it is mentioned that you are paying off your debts through credit counseling. This will not affect your credit score but may create problem for you to qualify for any further loan or credit.
Regards,
Phoenix
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Phoenix
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Debtcc Points: 100
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| Posted: Sat May 10, 2008 10:25 am Subject: |
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Yes....debt consolidation will help u...go for it and look for specific plans in it
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Free Debt Consolidation Guide
http://consolidate-debtloans.blogspot.com/
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justinhi5
Joined: 22 Apr 2008
Posts: 86
Debtcc Points: 638
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| Posted: Mon May 12, 2008 3:45 am Subject: Do It Yourself is better than debt consolidation |
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I think that “do it yourself policy” or the self repayment plan is a better alternative to debt consolidation.
debt consolidation companies charge a program initiation charge along with a monthly fee. These programs generally continue from anywhere between 2 to 4 years and adding up the monthly costs would stack up to a significant amount.
That’s why self repayment plan will be a more prudent & rational alternative to debt consolidation.
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Russle
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Debtcc Points: 100
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justinhi5
Joined: 22 Apr 2008
Posts: 86
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