debt consolidation?
Hello all, I have a question regarding debt consolidation. I have about 15k worth of debt and have tried applying to two companies for a debt consolidation loan and was denied both times. I thought about trying what one of the other posters suggested , writing to the individual companies threating a voluntary bankruptcy order. I have about 10k in the bank, but I don’t want to borrow from that lender because I wouldn’t be able to use the money in my account. My credit is only good. What other options do I have? Thanks
Tags: Debt, posters, Consolidation, debt consolidation loan, money, individual companiesRelated posts:
- Can anyone refer me to a good debt consolidation center?
- is it better to pay off your credit cards with a debt consolidation or just pay it off yourself?
- Do You Believe Any of These Top 10 Myths About Debt Consolidation?
- Non Profit Debt Consolidation - Break Free From Multiple Debts
- What are the reason or factors of someone to get denied for debt consolidation?
I am in the same boat…15k in debts. I didn’t bother trying to get a consolidation loan because I already knew I wouldn’t get approved. What I did do though is go to Money Management International since I didn’t want to file bankruptcy. http://www.moneymanagement.org I signed up for a debt management plan. This plan is similar to a bankruptcy in that you can’t have credit cards (all accounts are closed) and you can’t finance anything.
The differences…
1) No “bankruptcy” on your credit report for 7 or more years.
2) Completely optional. You don’t have to include every creditor and your creditors don’t have to accept any proposal. Because of this the 1st month or two can be a bit hard on the nerves.
3) You can end the plan anytime. …but your creditors will come demanding payment in full immediately on everything owed and don’t count on them being willing to make a deal.
4) If you miss a payment on the debt management plan your creditors can (and probably will) cancel their participation if they wish.
If you have 10k in the bank, why not use half of it on your debt. That would make things much more manageable.
Then get yourself on a written budget and attack the other 7500.
There is a great place to go with this. I was in a very similar situation.
This is getting help from real people without the use of banks or credit card companies. Good Luck!
http://www.prosper.com/join/lzc5wh
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan
Previous item: Debt Consolidation Secrets: What you should know before you even consider a Debt Consolidation
Back to the Front Page