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Posted: Mon Jan 05, 2009 3:46 pm Subject: Debt consolidation

I am considering debt consolidation. It would lower my monthly bills by a little and would help me out now. Problem is, the interest rate is higher than all of my current debts/loan rates, so in the long run I would be paying more, but soon I will be making significantly more and would probably be able to pay the loan off quicker. It would be about 20k over 4-5 years at 12%, where as I would probably be able to pay it off over 3-4 years. Plus, paying one bill a month is easier to budget and pay, as one of the loans can vary.

My current rates for my loans are 11.1%, 7.9%, and 6.9%.

Would the 12% interest rate be worth it now as long as I can pay off it off early?

Posted: Tue Jan 06, 2009 2:16 am Subject:

welcome sta0341 Smile

You can avail free counseling from one of the financial coaches of this community.

Sarah6551sd · Posted: Tue Jan 06, 2009 2:40 am Subject:

debt settlement can lower your debt by 40 to 60% or more. But it will negatively affect your credit score.

JackBlack · Posted: Tue Jan 06, 2009 7:55 am Subject:

Your rates aren't that bad at all. I would look into an accelerated payoff (snowball) program. And STOP using your cards - try to operate cash only. Otherwise use your cards, then pay that balance off by months end plus whatever you're putting towards those cards monthly.