Good credit - no late payments - lots of debt

Date: Wed, 09/14/2005 - 05:21

Submitted by anonymous
on Wed, 09/14/2005 - 05:21

Posts: 202330 Credits: [Donate]

Total Replies: 2

I currently have a "good" credit rating and am making the monthly payments, however with the new credit card repayment structure I am worried that this will stretch our budget too far. Is it possible to consolidate only my debt and not include my husbands -or mix and match? How does the fact that some credit cards are under the consolidation plan, but some are not affect my credit report? Thanks for your help

I can't tell you how the fact that some credit cards are under a

I can't tell you how the fact that some credit cards are under a consolidation plan will affect your credit report. But, I do know you can include as many or as few as you want. We kept one card with a very low limit ($500) out of our consolidation. We wanted to be able to rent a car or have it for emergencies and still not be able to get in too deep! We were just making it when I was hospitalized twice last year, in three different hospitals! The consolidation allowed us a bit of breathing room. We have approximately 15K in credit card and medical debts and expect to be debt free in less than three years! I am so very excited that we can finally see the light at the end of the proverbial tunnel!

Unfortunately, I am probably looking at back surgery in the next few weeks, so we may have to add some of that to our plan.

I really feel like the consolidation has given us back some control and allowed us to clear up our credit card debt far quicker than we ever would have been able to on our own.

lrhall41

Submitted by Taquita on Wed, 09/14/2005 - 06:37

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When you consolidate a bill (ie. a credit card) the bank or fina

When you consolidate a bill (ie. a credit card) the bank or financial institution that grants your consolidation loan will pay that bill for you ... then you pay them. That is what consolidation is. This means that your balance for the consolidated credit card will return to zero. If the account is still open, you can continue to use it.

I have had a couple of credit cards (and a couple of consolidation loans) where I paid the the full balance of a couple debts bringing the balance back to zero. Then I charged it up again and re-consolidated it.

Essentially rather than paying each company a minimum per month, you're pay the financial institution that granted your consolidation loan a minimum payment and you end up saving nearly 50% of your monthly expenses. Sometimes more!

You should be able to consolidate anything that is:
(1) Your debt (or the debt of a cosigner)
(2) Fixed debt (versus revolving debt like a power bill which you cannot consolidate)

I hope this information is helpful.

lrhall41

Submitted by cryptowizard on Wed, 09/14/2005 - 06:52

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