I have found myself in a situation after my divorce that i cannot get a grip on. I have credit card debt, not much, but cannot handle the basic payment because i moved in my dads house to help him out, he is 73 years old, he fell ill, so he could not work now i find myself paying his bills, handling his rent and basic necessities, but now i have $3000-$4000 in debt, $2000 is already in collections. I am a single mother and i was thinking about turning to a debt consolidation agency. Is this a good thing to do?
Are debt consolidation agencies a good idea?
I have found myself in a situation after my divorce that i cannot get a grip on. I have credit card debt, not much, but cannot handle the basic payment because i moved in my dads house to help him out, he is 73 years old, he fell ill, so he could not work now i find myself paying his bills, handling his rent and basic necessities, but now i have $3000-$4000 in debt, $2000 is already in collections. I am a single mother and i was thinking about turning to a debt consolidation agency. Is this a good thing to do?
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No. You will end up paying them less each month but you’ll be paying them until the day that you die and end up paying more in the long run. Set up a payment plan with your credit card company.
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The problem is there are debt consolidation agencies that take advantage of a debtors situation, and charge them huge interest fees and other charges.
If you can, find a local credit union or bank and get a personal loan. It works out to the same thing, basically.
But one word of warning….many people get consolidation loans to pay off credit cards, then turn around and run them up all over again. Now they are in twice the amount of debt, and end up filing for bankruptcy.
I have seen this many times already. If you get such a loan, you MUST control your credit spending.
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Hi,
I used Credit Solution to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
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Not all debt consolidation agency are like that. There are some companies who help you out planning your debts. Try this
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Cheryl,
Debt consolidation can work well for student loans, but has limited success with other types of debt.
There’s a good article at eHow on steps to take to begin tackling your debt. Take a look at it:
How to Stop Escalating Debt
You can also look here for tips on earning some extra cash online:
How to make money on the internet, scam-free
Lastly, here’s an interesting alternative to conventional lending…getting a social networking loan from Virgin Money (from the same folks who run Virgin Airlines):
Social Loans from Virgin Money
Hope these help.