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Thread: Debt Consolidation?

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    #1

    Debt Consolidation?

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    Okay so I'm be straight forward and very personal about this, Lol! Me and my Husband got married as soon as he came home after his first deployment and we had nothing... So we used the credit cards... Then we made a trip to Puerto Rico so I could actually meet his family and what not.. (thankfully we did because his Grandmother passed away the year after) SO all in all... its added up and I feel like we're getting no where... We're spending $500 (seperate payments but total $500) a month in trying to pay our debt off.. and it blows... obviously.. LMAO

    We did pay about 3k off when he got his re-enlistment bonus but we still have a ways to go...

    My question is, have any of you used a debt consolidation place? I think if I get it to be all on one loan with one interest rate, we'll have a better chance in paying it off... Help please!

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    #2
    You can call up the credit counceling serivices. They are suppose to help. We are just playing the game and just not using them again. Budget, budget, budget. That is about all you can do. Don't spend more then you make.
    "Obstinacy is a fault of temperament. Stubbornness and Intolerance of contradiction result from a special kind of Egotism, which elevates above everything else the pleasure of its own autonomous intellect, to which others must bow.: Carl von Clausewitz
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    #3
    Two things:

    You have to be completely committed to be debt free. A lot of people will consolidate with a loan which leaves them with a lot of available credit, and then run up their cards all over again.

    Secondly, it can affect your credit negatively. How long and by how much, I can't say, but I have heard that it's not that big of a difference. If you're not planning on buying a house or anything like that any time soon, I wouldn't worry too much about it.

    You can find online calculators that will tell you how much your total pay off will be if you have xxxx amount of debt at xx% a month and you pay down XXX a month. I'd use one of those calculators to see exactly how much consolidation will save you. It might not be worth the hassle.

    Good luck.
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    #4
    Honestly I would make the minimum on all of your cards and pay off the smallest or biggest one first...make little goals for yourself like "I will get this one card or one thing paid off first" Take baby steps...trying to get out of debt can get overwhelming!

    Also make a budget...budget a certain amount to go toward your credit cards each month!! Another important (maybe obvious thing) don't use credit cards anymore for now...don't buy anything you don't NEED
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    #5
    Quote Originally Posted by DestructoJess View Post
    Two things:

    You have to be completely committed to be debt free. A lot of people will consolidate with a loan which leaves them with a lot of available credit, and then run up their cards all over again.

    Secondly, it can affect your credit negatively. How long and by how much, I can't say, but I have heard that it's not that big of a difference. If you're not planning on buying a house or anything like that any time soon, I wouldn't worry too much about it.

    You can find online calculators that will tell you how much your total pay off will be if you have xxxx amount of debt at xx% a month and you pay down XXX a month. I'd use one of those calculators to see exactly how much consolidation will save you. It might not be worth the hassle.

    Good luck.

    They just passed a statute that is forcing credit card companys to tell you how much interest you are paying and exactly how long it will take you to pay of that credit card debt if you continue to pay the min. payment. The chart should be on your statements so look into that first and see how much your really spending on interest.

    Another bit of advice is taking something you have collateral in and applying for a refinancement. If your credit is good this is an easy way to stop paying the higher interest on credit cards. It also combines your payments into one. So it saves you both time and money.

    Let's say you have a car you are still paying on and it is worth 13,000 but you have 8,000 left to pay. That leaves you with 5,000 available credit. The bank finances you for the whole 13,000 and gives you the excess in a check. You can use that money for a payoff and to get away from the credit card compaines. The neat thing is that car loans and anything with collateral is going to save you a lot of money in interest. We are talking about going fom 22% that a credit card may tack on, down to 7% with a used car loan. It all ads up my dear.

    The question in how is your credit. If you have made your payments on time, have a steady income, an extended credit history and no defaults then you should be fine. My reccomendation is going with a smaller bank or credit union for a loan though, they are more apt to lend during this time. Local is always better. Do not get caught up with BOA, USAA is also a great choice.

    Good Luck,
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    #6
    Thank you for the advice and suggestions.

    I do have a budget in place and we're keeping to it pretty well. I did play hard ball with one of my own credit cards, it hurt my credit unfortunately, but I lost my job Lol so in the end they cut $300 off my $800 credit card BUT my credit is kinda hurting...

    My Husband's credit is decent, its slowly going back to where it was around 720 but with the debt to income ratio so high its taking a while...

    Oh and trust me I'm ready for the debt free life, LOL we've been paying off this debt for almost 2 years already... and getting NO WHERE..

    I would love to put another payment a month to one of the cards, so I'm going to look into my budget and see where I can make cuts maybe on our cell phone and cable/internet...

    Thanks again

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    #7
    Honestly I would avoid them if possible. I know 500 in debt bills a month is a lot, but considering doing one of these can damage your credit, and than the military feels you are incapable of managing your debt it can turn around and not be a good thing.

    MY advice is any extra money you get, pay on or off the credit card with the lowest debt amount. If possible pay more than min payment due amount.
  8. The grass is greener where it gets watered.
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    #8
    Buy the Dave Ramsey DVDs!!!!!!!!!!!!!!!!!!!!!!
    “In my world, everyone's a pony and they all eat rainbows and poop butterflies!” ― Dr. Seuss
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    #9
    NavyFed has carloans for 3.9%, if you have equity in your car. Take it and pay of your credit cards and then do NOT use them anymore.
  10. Loves Her Paratrooper!
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    #10
    Ok explain to me how the equity in cars work because that, I had no clue on! If I owe less than its worth I get the money?

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