Debt Consolidation Care Answers
Debt Consolidation Care Answers

 

My monthly payments on my debt are very high. What to do?  

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I make really good money, but my monthly payments on my debt are very high and I seems like no matter what I do, I am not making a dent in my debt

I am considering taking a home equity debt consolidation loan or going to a credit counseling organization. I am hesitant about going to a credit counselor because of the possible negative impact to my already faltering credit. The clincher to all of this is that I would like to buy/move into another home within the next 12 months because of my safety concerns in my current neighborhood. Please advise me on my best course of action.
 

asked Dec 29, 2004 06:56 AM

Anonymous
Best Answer
5
best answer


Quote:

Originally Posted by DoingThingsNow
I make really good money, but my monthly payments on my debt are very high and I seems like no matter what I do, I am not making a dent in my debt

I am considering taking a home equity debt consolidation loan or going to a credit counseling organization. I am hesitant about going to a credit counselor because of the possible negative impact to my already faltering credit. The clincher to all of this is that I would like to buy/move into another home within the next 12 months because of my safety concerns in my current neighborhood. Please advise me on my best course of action.


There are a few things that you can do. First, you should cut costs and budget wisely. This would have to be the first step because you need to allocate some of this money towards your bills.

High interests rates could be a factor contributing to your unyielding debts. The interest rates may be stymieing your ability to make a dent in those debts.

You should take the debt with the largest interest rate and focus on paying it off first. Pay above the minimum in order to eliminate that debt as soon as possible. Rank all of your debt by interest rate and eliminate each debt one by one. A credit counselor would be beneficial in helping you develop repayment plans similar to this.

answered Apr 11, 2005 09:40 PM

4 Answers

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Quote:

I am considering taking a home equity debt consolidation loan or going to a credit counseling organization.


As we clearly say in our website that debt consolidation is not always the best option. We recommend the self re-payment, it goes like this,

Step1 : Calculate your total monthly Income
Step2 : Calculate your monthly expenses
Step3 : Calculate your debts
Step4 : Total debts/(Income-Expenditure) = months taken to payoff your debts without interest.

If this month is numerically a large number, consult the credit counselor or debt settlement firm. The better companies plan in such a way that your credit is reflected positive in the long run.

Regards
Vikas

answered Dec 29, 2004 07:56 AM

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They allow you to skip/postpone credit card payments until the next billing date. This helps me get my finances in order when money is tight. It gives you some breathing room when your spreading your money really thin.

answered Jan 2, 2005 11:20 AM

Anonymous
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Hi John

It's a pleasure having your participation in the forum. Wish you a very Happy New year. Sorry that the URL you are associated with has to be deleted. We look forward to having more of your participation with new suggestions or articles.

Regards,
Simon

answered Jan 3, 2005 12:19 AM

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Managing the finance is an art of living this life successfully. Living a debt free life is the perfect bliss.

Roxette

answered Apr 12, 2005 11:48 AM

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