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Posted in Paying Your Bills
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Question By
atown6788

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How do I consolidate my debt?
I want to pay off my debt but dont know where to start!

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Debt Consolidation

Helpful to 17 out of 19 people

This is common for many people.  You have many options, but the right one depends on several factors: amount of debt, type of debt (secured vs. unsecured), and how much you are struggling.  Here are your basic options:

1) if you own a home and have good credit, you can refinance your home and take cash out to pay off your debt

2) If you have good credit, you can take out a personal loan at a lower interest rate

3) If you are struggling to make payments, you can seek credit counseling. best for under $10,000 of debt

4) If you are struggling with a financial hardship, you can get help from a debt settlement company. best for over $10,000 of debt

5) If you are struggling and have little to no income, you can file bankruptcy

There are companies and services to help with all these options. Good luck.

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6 People Helped

No bankruptcy

Helpful to 6 out of 6 people

Don't declare bankruptcy - messes up credit for 7 years & it costs for lawyer & if you have a newer car - can't take house but otherwise a bad idea - we did & are in same boat again - do NOT do that!

Reply by
SunyeMB

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2 People Helped
Helpful to 2 out of 2 people

It took me 13 years to get it off my credit report....

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6 People Helped

Interview Banks

Helpful to 3 out of 3 people

You can visit the bank you currently use. Ask if they offer consolidation loans. If you have property or other collateral they may be able to use that for a secure loan.  You would have a set number of years to pay off the loan, but generally the interest rate is much better than say, a credit card. 

I have some negative equity from an auto loan that I needed placed into a loan so that I could sell the vehicle to someone.  Although I wouldn't recommend doing this as a regular event, I needed to sell it.  My bank offered me a secured loan (using land as collateral) for 5 years at an interest rate controlled by my credit score.  Other charges involved are closing costs and appraisal due to my using a piece of property as collateral.

Some financial institutions offer unsecured loans, generally for those with very good credit scores.

Another option available are home equity lines of credit (if you own a home). I generally try to stay away from using equity from my home. I have a great interest rate currently, as well would like freedom to sell my home in the near future if I want to. 

Overall, consolidation worked great for me regarding my negative equity in my vehicle (as well as saving on interest on another loan i had).  Auto dealerships were trying to get me to roll it into a new vehicle payment, insisting this was the only way....

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4 People Helped

consoladation

Helpful to 4 out of 4 people

​what is the best company to use in KY to consoladae my bills

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8 People Helped

Helpful to 8 out of 14 people

need help to improve my credit score

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2 People Helped

Refinance

Helpful to 2 out of 4 people

If you currently have a mortgage and have equity built up.... You can go refinance your home and get cash to pay off other debt!

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0 People Helped

Helpful to 0 out of 3 people

I am debating the credit counciling option or bank rupsy but my husband is worried that if i declare bankrupsy he would have bad credit from that as well that the bankrupsy would reflect on him since we are married.

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