I have average credit, but I'm running into problems...

Date: Sat, 08/20/2005 - 10:41

Submitted by anonymous
on Sat, 08/20/2005 - 10:41

Posts: 202330 Credits: [Donate]

Total Replies: 1

I have a decent credit score that is about average. However, I am having trouble keeping up with all of my payments. I have a car loan, two personal loans, and 4 credit cards that are near their limits. Making all of the minimum payments is taking up a large chunk of my income. I also have a deliquent hospital bill that I would like to make payments on, but I am stretched thin at the moment. I am trying hard just to keep up with rent and other living expenses. Could I consider debt consolodation even if I recently acquired some of this debt? --Ron

Hi Ron Welcome to the forums. You can consider the option of

Hi Ron

Welcome to the forums. You can consider the option of debt consolidation to make your repayments easier.

You should look for the consolidation program which will offer you the lowest rate of interest. Even one percent less in interest can also make a huge difference on a large multi year loan.

When you consider for such types of program, you should not instantly choose the longest repayment plan with an intention to minimize your monthly payments. If you choose the shorter payment plan, you will be able to save thousands in interest charges. If you keep contributing towards the maximum amount you can handle, you will be able to clear your debt faster and will reduce the risk of taking another loan in the future.

After you are in the program, you should control the urge to go deeper into debt again. Whenever you feel the need to borrow money in the future, you should give a thought of how you felt when you decided to choose the consolidation program.

Proper planning and a disciplined budgeting will help you in achieving your goal of a happy and successful future.

Regards
Roxette

lrhall41

Submitted by roxette on Sat, 08/20/2005 - 11:53

( Posts: 4009 | Credits: )