Confused About Debt Consolidation
Date: Thu, 06/07/2007 - 12:14
I got off the phone a bit ago with a consultant from this board about consolidating my debt. My debt amount is small compared to most, but right now it's hard for me to manage at the moment....
I owe about $2500 to a CC Company, and am currently paying them $65.00 a mo because I'm in some re-aging program with them, the payments are basically covering the Finance Charges each month. If I wasn't in their "program" they would want $120 something each month which would be somewhat hard to pay,considering my only source of income is a little over $600 a mo in SSI due to being disabled....
The person I spoke to on the phone said if I consolidated my debt I'd owe about $104 a month, and I could have my debt paid off in 48 months. Which makes me wonder exactly how much in "fees and etc" there are when it comes to consolidation, if it would take 48 months to pay off my $2500 debt; it seems like I'd be paying what I owe and then paying what I owe again in "fees and etc."......
Hope I made sense........:?
I owe about $2500 to a CC Company, and am currently paying them $65.00 a mo because I'm in some re-aging program with them, the payments are basically covering the Finance Charges each month. If I wasn't in their "program" they would want $120 something each month which would be somewhat hard to pay,considering my only source of income is a little over $600 a mo in SSI due to being disabled....
The person I spoke to on the phone said if I consolidated my debt I'd owe about $104 a month, and I could have my debt paid off in 48 months. Which makes me wonder exactly how much in "fees and etc" there are when it comes to consolidation, if it would take 48 months to pay off my $2500 debt; it seems like I'd be paying what I owe and then paying what I owe again in "fees and etc."......
Hope I made sense........:?
When you put the debts in the consolidation plan, the counselor
When you put the debts in the consolidation plan, the counselor negotiates with your creditors on not to charge any fees in the plan. He also gets reduced interest rates from your creditors.
Considering the re-aging program, you are not able to lower down the principal amount. If you have to pay outside the plan, it will cost $120 per month and if you include this in the plan, it will be $104. So, as you can see, you have some savings in the consolidation plan.
