I really did it this time I have my CC bills way up there and will never pay them off with just sending the min. payment every month and really have no extra money to send a bigger monthly payment. Has anyone ever used a debt consolidation loan before? and if so how did it work for you? any help on this subject would be great.
Thanks in Advance

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Proud mom to 4 great boys Anthony20,Nicholas16,Michael4,Sean2

I have a friend that did the consolidation with a company on her credit cards This company contacted all the credit card companies and cut a deal to pay everything off at a fraction of what she really owed. Then she owed the consolidation company payments for a couple of years then she was done. Otherwise she never would have been able to pay everything off individually on her own.

Sista I feel for you. I am right there with you, I am drowning and don't even know where to turn!! I have no advice for you, just know you are not alone in your freaked out state of mind!!

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*** Find A Need , Fill A Need ***

Years ago we did the "Debt Free" program...remember the ads? It was a bust!! We were not behind, just lazy and wanted to make one payment instead of several. We paid $400.00+ each month for approx 3 years and we were told that in 4 years all would be paid off....well, is wasn't and it turned out to be a big, fat MESS-(SCREAM)
So, if your going to do a program choose wisely, do your research.........

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"Cougars for Cook"

I will suggest cutting back in small ways. Consider no eating out, hanging your laundry outside, doing dishes once a day, laundry load after load so the dryer works at maximum, no cable, computer, movies, new clothes, etc. All the things that are not true necessities and that you can do without. There have been a couple of threads (and is one currently) about being frugal.

Start to keep track of your outgo so you can see where it is actually going and cut back. Send whatever amount you can over the minimum and keep at it You got here, you can get past this!

dl

I would suggest you call your c/c company(ies) and see if they will lower your interest rate. We were just offered a 0% for 9 months with a $75 balance transfer fee. A good deal if we were in the market for that.

I agree with the poster about cutting back in small ways. You are posting on the internet, so I am guessing you have internet. If it is cable modem, switch to dial up ( I know, I know.......) . Scale down your phone service to just basic service, same with cable, or cut cable out all together. Wash EVERYTHING in cold only, even your whites. Set up a set amount of money for groceries and spend ONLY that, include any fast food in there. Really hunker down basically.

good luck.

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Doing the right thing isn't always the same as doing the easy thing.

If you are talking about a debt consolidation loan, watch out many are scams. You can take out a second mtg on your home and write off the interest but thats risky. You might want to look into one of the not for profit credit counceling services but do your home work!!! My brain is not functioning but I believe its ccs that is actually one that is reputable, but again, I can't stress it enough, do your homework there are a lot of dubious companies out there and when they smell blood in the water it gets dicey. People will start calling you up when you are in debt and claim you owe them money when you do not. Make sure you educate yourself on the law. They have to provide you proof of your debt if you ask. Get on-line and educate yourself.

I think taking a 2nd mortgage on your home to pay off debt is expecially risky for someone who has not been able to use credit cards responsibly.....mess up on that and you lose your home. Perhaps check out Dave Ramsey's programs...total money makeover.

cj/

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I was walking home one night and a guy hammering on a roof called me a paranoid little weirdo. In morse code. -Emo Phillips

I did the buyout with discover and visa where I paid a portion of what was the total bill. There is a new federal law that bit me really badly as this is reported to the I R S as income and put me in a huge hole with uncle sam. So if you don't pay it one way you will another.

EXACTLY!! If you don't have your spending under control you will never get out of it, especially by taking out more loans.

Dave Ransey is awesome! We have been credit card free since last Christmas! We still have about 3, but ALL are no intrest, we balance transferred and every month we actually pay money toward the balance, nothing goes to intrest. We haven't charged a DIME which is really the first step.


Good luck, it's very doable, you just have to take it seriously.

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"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

Found this on Clark Howard's website.

"Does Clark recommend using a credit consolidation company?

No, consumers should avoid using credit consolidation companies. They usually want upfront fees and you may not get your credit problems resolved. Clark feels that Consumer Credit Counseling Service is the legitimate counseling service out there. They provide credit counseling for free and a debt management service for a three-to-five percent monthly fee not to exceed $50 (different for all states). Go to Welcome to NFCC! to find your local CCCS office."

You may want to check the above link, OP, and perhaps check Clark's site as well. It has an abundance of good information. Good luck to you.


clarkhoward.com: Save more, spend less and avoid rip-offs

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I want to keep ALL of my paycheck and eliminate the pyramid scheme known as Social Security (there is no lockbox ). Do you want the same thing? www.fairtax.org