Debt Consolidation

[2Slow4U_Noob]

Ok so I wanna put my credit card and loan debt into one bill and lower the interest. I did a search on debt consolidation and I found a billion websites. I'm not sure which ones to trust because I also found some information on scams. Anyone ever done this? I saw a couple linked to off of about.com so I'm thinking they might be legit then. www.nodebt.com was one of them, and I can't remember the others off of the top of my head. So anyone got any advice?

[Raz_Kaz]

My advice...don't get a credit card and don't take out a loan. I hate having a debt (even if it's 5$). If I don't have money for it then I won't get it, simple as that


This being my motto until I have to buy a house, then all this goes down the shit hole...

[TexasF355F1]

With any Debt Consolidation company there are usually hidden fee's and very high interest rates. They may say they are a "not for profit" organization but they still make profits by these hidden fees and interest rates from the people who get behind on payments. Read all fine print very very carefully. If you don't you could wind up being held balls to the wall with paying far more money than you owe.

Originally Posted by Raz_Kaz

My advice...don't get a credit card and don't take out a loan. I hate having a debt (even if it's 5$). If I don't have money for it then I won't get it, simple as that


This being my motto until I have to buy a house, then all this goes down the shit hole...

Don't follow this method. If you don't have a credit card you will not be able to establish credit. And will not be able to receive a good loan with low interest rates. Don't be stupid with credit cards and go on spending sprees. And unless your a bizilionaire you will have to take out a loan at some point and time. Even then rich people still take out loans. Be wise with your money and don't spend it at the drop of a hat. Ask yourself before you make a purchase, if what you want to buy is needed or wanted.

[lamehonda]

Debt consolidation can also hurt your credit. I always pay off the credit card every month. It is a great way to build your credit. You get a pretty statement every month and you get to delay the time you have to pay for something by several weeks. I have had my for two years and haven't paid a cent of interest.


Don't consolidate unless you aren't making your payments, because your lowered credit will cost you more down the road anyway.

Originally Posted by TexasF355F1

Be wise with your money and don't spend it at the drop of a hat. Ask yourself before you make a purchase, if what you want to buy is needed or wanted.

good advice, but you still should not buy things you need with a credit card when you don't have the money for it. Better to starve for a month than not be able to eat for a whole year in the future because you charged that ramen to a credit card with 20% interest.

[TexasF355F1]

Originally Posted by lamehonda

good advice, but you still should not buy things you need with a credit card when you don't have the money for it. Better to starve for a month than not be able to eat for a whole year in the future because you charged that ramen to a credit card with 20% interest.

Thanks, that's what the point I was trying to get across. Thanks for clearing it up. My roomate and I have been talking about setting up some loan company and charge interest of like 0.1% interest but compound it daily. Yea its bad to screw people over, but if they can't read the fine print I don't give a shit if I make money off of someone who's dumb enough to not read.

[lamehonda]

Compounding daily would not affect the rate very much. What they do is charge you .1%/day which would be 3%/month and 36% a year if it was simple interest. compounding will only affect it a small amount.

PS it is not legal to charge 36%, I was just using this number because it had been mentioned previously

[2Slow4U_Noob]

Cool thanks guys for the info. I'm not like head over heals in debt, but I do got a car I'm paying for as well as credit card expenses from a trip to vegas and various car repairs. I make the payments alright, but I was just thinking instead of paying 50 here and 50 here and so on, I could just pay one bill everymonth with a lower interest rate than all the other bills i owe. I did read somewhere though that it might be better to keep the bills seperate because you end up payin less money in interest if your money is divided up into smaller portions. I guess i'm going to have to do some math to figure it out.

[lamehonda]

You mean that they spread out your high interest debt over your low interest debt to make it even out? You could set up a bill pay system with your bank that will automatically pay your bills every month. Not recomended if you run a low account balance and will neglect to make sure they are billing you correctly.

[Raz_Kaz]

Woah, I dont know if anyone else notived but it's kinda freaky....I opened this thread and this is what I get:

[lamehonda]

priceless

[eversio11]

Originally Posted by Raz_Kaz

Woah, I dont know if anyone else notived but it's kinda freaky....I opened this thread and this is what I get:

Its called targeted marketing

[-Davo]

yeah, I've noticed that it now has a few links to some sites with the exact same name as the thread title.