The Truth About Bad Debt Consolidation
It is bad enough to be head over heels in debt, but it is even worse when you fall behind on your payments, and your debts begin to destroy your credit score. When this happens, what should you do or where should you turn for help? Be careful! Bad debt consolidation isn't everything it is advertised to be.
Many people will tell you that you won't be able to get a consolidation loan if you have bad credit. That is not true. There are places on the internet that will guarantee you a consolidation loan for your bad debt. There is always a consolidator that will be ready and willing to entice you with an easy to get bad debt loan that will lump all of your debt together. What they don't tell you is that your interest will be as high as 20 to 22 percent because you'll be considered a high risk.
It's true that your monthly payments will be considerably lower, because you will only be paying one monthly payment instead of a number of individual payments. The minimum repayment time is ten years, and you can choose to make it even longer. What they don't tell you is that you will end up paying a whole lot more because of the high risk interest rate.
They will graciously assure you that you don't have to worry about a thing, because they will take care of everything for you. That's not a lie either. They will take a 10 percent fee out of every monthly payment to pay for their help. That means you'll pay an extra $45 a month if you pay $450 a month on your repayment plan. Only $405 will actually go to your creditor, meaning you end up repaying even more.
Is it worth paying someone else that amount of money, when you can do something very similar yourself? Call your creditors and work out a plan that will give you a lower interest rate and lengthen your repayment schedule. If no one wants to help, talk with a supervisor. Keep insisting. Once it. 's arranged, pay your highest interest debt first.
Be careful, because these consolidation companies have a bag full of trick tactics. They will promise you that you can rebuild your credit quickly when you only have to make one monthly payment, and you make it on time. The problem comes when they pay your creditors late. Your credit will bottom out.
What is the answer to all of this? Talk to your creditors first, and work out a solution with them. It will still mean a lot of monthly payments, but learn how to pay off high interest debt first, and you will begin to see those payments disappear, one at a time. - 23305
Many people will tell you that you won't be able to get a consolidation loan if you have bad credit. That is not true. There are places on the internet that will guarantee you a consolidation loan for your bad debt. There is always a consolidator that will be ready and willing to entice you with an easy to get bad debt loan that will lump all of your debt together. What they don't tell you is that your interest will be as high as 20 to 22 percent because you'll be considered a high risk.
It's true that your monthly payments will be considerably lower, because you will only be paying one monthly payment instead of a number of individual payments. The minimum repayment time is ten years, and you can choose to make it even longer. What they don't tell you is that you will end up paying a whole lot more because of the high risk interest rate.
They will graciously assure you that you don't have to worry about a thing, because they will take care of everything for you. That's not a lie either. They will take a 10 percent fee out of every monthly payment to pay for their help. That means you'll pay an extra $45 a month if you pay $450 a month on your repayment plan. Only $405 will actually go to your creditor, meaning you end up repaying even more.
Is it worth paying someone else that amount of money, when you can do something very similar yourself? Call your creditors and work out a plan that will give you a lower interest rate and lengthen your repayment schedule. If no one wants to help, talk with a supervisor. Keep insisting. Once it. 's arranged, pay your highest interest debt first.
Be careful, because these consolidation companies have a bag full of trick tactics. They will promise you that you can rebuild your credit quickly when you only have to make one monthly payment, and you make it on time. The problem comes when they pay your creditors late. Your credit will bottom out.
What is the answer to all of this? Talk to your creditors first, and work out a solution with them. It will still mean a lot of monthly payments, but learn how to pay off high interest debt first, and you will begin to see those payments disappear, one at a time. - 23305
About the Author:
Will Debt Consolidation be the answer for you money problems? Get ways that you can use Bad Debt Consolidation to help you out. Get out from under the pressure of all those payments today!
posted by Mr. Forex at
10:10 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home