consolidate different types of debt?
Date: Thu, 10/12/2006 - 09:51
My question is: Is it possible to consolidate several types of debt? (ie. School loans, car loans, credit cards, outstanding utility bills, etc?) I lost my job two months ago and my personal economy had a harsh recession. Long story short, I am behind on almost everything (car, credit cards, $1600 utilities, cell phone, etc). I landed a new job last week and while I will be making ok money, I wont be able to pay off all of these bills anytime soon :-) So, if it's possible to consolidate them all with one company, does anyone have personal experience doing this? Who did you go through?
much thanks!
glenn
Hi Glenn, and welcome to the forum! Secured debt such as mort
Hi Glenn, and welcome to the forum!
Secured debt such as mortgage, auto and school loans cannot be consolidated. Credit cards, personal loans, medical bills, closed utility and cell phone service accounts can be consolidated, as they are unsecured debts.
There are a lot of consolidation companies out there nowadays, some are good and some are not so good. There is a ranking chart on this site that should list some reputable companies in your state. http://www.debtconsolidationcare.com/american/
It would be advisable to check out any company you're considering working with on the Better Business Bureau's website first, so you can see if they have a satisfactory record, how many complaints have been filed, how many of those complaints have been resolved, etc.
There are various debt management programs to suit everyone's ne
There are various debt management programs to suit everyone's needs. If consolidation is the best fit for you, combine everything under one payment and pay them at lower interest rates. Creditors will stop calling after they receive money through your consolidation company. Your accounts will remain current and the debts will be updated with the bureaus. Your credit scores will rise after each account gets paid off.
In case, you are unable to manage with the payments set in the consolidation plan, settlement can also be a choice. This program is specifically for those people who have huge amount of debts. A settlement program will reduce the debt by 40 to 60 percent. This program works with a different approach. Your debts will have to be in defaults before the settlement company starts negotiating with your credit companies. A new trust account is opened where the monthly payments are sent by you. The creditors will often accept your proposals by the settlement company because they want to get their money back. After everything is finalized, money from the trust account will be used to pay off your debts and your credit report will be updated with the bureaus. This is also a good program especially when you want to get out off your endless debts. Look into this page for an extensive explanation on the various debt management programs available to people.
http://www.debtconsolidationcare.com/debt-solution.html
