I have found myself in a place that has me worried. I have $20,000 in debt. The problem is that I am losing hours at my job which is causing my to fall behind with my creditors. My debt consist of mostly card credits and some medical bills. I was paying the minimums but now I can't even afford the minimums.
I have heards some good things about debt settlement but I have also heard it hurts your credit.
I am leaning towards debt consolidation because they can provide me a loan and lower my payments. That is the main thing I need lower payments but I don't know too much more about debt consolidation except I continue to stay on time with my creditors because payments are lowered enough for me to afford them.
Credit Cosumer Counseling I have no clue about my friend just told me to check it out.
If you can get a consolidation loan that lowers your payments and doesn't require using your house as collateral please let me know where you got it. Every body I talked to said I needed equity in my house and a credit score that walks on water. Even if my credit was great (which it's not) I don't want to be another foreclosure victim if I can't make the payment
Chances of you getting a loan are slim to done but just be sure you keep all your options open and find out the pros and cons of each. Debt settlement yes will affect your credit, but find out what the pros are as well. Credit is versatile and can be fixed, the question you need to ask yourself is where do you see yourself 12 months from now: Having decent credit but debt up to your eyeballs, or have sub-par credit and have zero debt?
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"Most folks are about as happy as they make up their minds to be." Abraham Lincoln
The situation you described in your post is this; your income is being reduced, your falling behind, you can't afford even the minimums, and all these problems are stressing you out. When you are feeling stress and pressure sometimes it's tough to think clearly. Taking out another loan doesn't reduce your debt a penny. In fact it could increase your debt if there are fees for the loan. A consolidation loan doesn't reduce your debt, it just changes the name of your creditor. Most people who use consolidation loans end up worse off than they were. The lower payment takes the pressure off, until you take on more debt. Don't consolidate just to lower your payment if it extends the loan. How much will it cost you overall in principal and interest? If your serious about getting out of debt your focus should be on paying off the principal as fast as possible, not just lowering your payment to create breathing room.
Our certified credit counseling experts will help you determine the best way to approach your financial situation and provide you the best options for managing your debt.
We will assist in analyzing your current financial situation, providing personalized options based on your goals, and recommending the optimal debt management plan to achieve financial stability. The credit counseling solutions we provide offer our members long term financial success, as well as short term debt management and debt consolidation.
