Is this a good Debt Consolidation Deal?
Date: Mon, 08/10/2009 - 16:29
I got the following offer from a Debt Consolidation company: 167/month for 41 months [It includes their $47/month fee].
There are no additional fees and I can cancel / pay off at anytime with no penalties.
Just wanted to get some opinions whether I should go ahead with this.
Have you calculated that you would be paying around $6847 for $4
Have you calculated that you would be paying around $6847 for $4500 debt? Does it sound okay to you? If so, then its a good deal. :)
How much reduction would you be getting on the APR?
debt
GOSH!!...........sounds like a 'Payday Loan', kind of thing!! Can you tell me (..guess I'm just curious..) what Consolidation Co you're going through? You're throwing ALOT of money away,.........and you have a 'fee' on top of it.
$47 a month fee is way too much. You should not pay more than $
$47 a month fee is way too much. You should not pay more than $30. Try to find a reputable non-profit DM company.
What are you paying in minimums now? Are you making those payments? $4500 is a rather small amount that could possibly be handled with a debt stacking approach.
And SC is right. You will be paying a total of $6847 on $4500 i
And SC is right. You will be paying a total of $6847 on $4500 in debt. $1927 of that will go to the DM company. That is almost half of what you owe now!
You should look into a debt stacking approach and get it paid off just as fast.
Loan amount: 4,500 APR 25% Loan Term 41 months or 3.417 years
Loan amount: 4,500
APR 25%
Loan Term 41 months or 3.417 years
Monthly payment for above is 164.30 to pay in full. That company is screwing you over. Not only will they wreck your credit but they will charge you more than if you paid in full.
I used a simple loan calculator to figure it out found here
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
