debt consolidation, i need your help PLEASE

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50CentShort

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hi

I have quite a bit of debt, on various accounts that I would like to take care of.

however I dont have the funds to deal with it once off.

what are the best debt consolidation services out there?

any experiences?

thank you
 
If you have budget on your credit card, apply for a balance transfer.

That's pretty much it
 
Cut your spending. Start paying off the debt with the highest interest rate. Then close the account.

You will be amazed what you can do by cutting your debt. My only debt is my house. Credit cards are only used as a convenience payment method

The basic rule is. Dont spend money you don't have
 
Be very weary of using 3rd parties (consolidation services) to do it for you. There are a lot of scammers out there, that feed on ppl that want to consolidate debt. What worked for me....I made a list of all accounts, outstanding balance, payment due and interest rate.
I started paying off the account with the smaller balances so that it would give me an extra bit to try and clear off another account. Whatever you do, dont use the extra money for anything else but putting it into another account. You have to make as though you did not have that money in the first place.
Ways of cutting costs, reducing cell phone bill, reducing electricity bill, cancel all unnecessary subscriptions. Most companies are quite flexible if you are upfront with them about your financial situation. Speak to them, and even make an arrangement for payment. Stick to the arrangement.
 
Another option would be to apply for a loan & use the lumpsum to pay off all your debts at once. Then close all those accounts & only pay ONE debt (the new loan).
Then NEVER repeat that mistake ever again!
 
Chief Whip said:
Another option would be to apply for a loan & use the lumpsum to pay off all your debts at once. Then close all those accounts & only pay ONE debt (the new loan).
Then NEVER repeat that mistake ever again!
Click to expand...

this is good idea, but with my poor credit rating that wont be possible.

thats why i thought one of those debt companies might work?
 
50CentShort said:
this is good idea, but with my poor credit rating that wont be possible.

thats why i thought one of those debt companies might work?
Click to expand...

In that case then rather follow the advice thats already been given & start off paying the smaller debt first... I would NOT recommend those companies that sell those false claims (in my opinion).
 
oh I thought that there were some companies out there that actually DO help... guess not...

I also heard that FNB offer a "one account" or something like that. Maybe that will be able to help me, but I need to look on their site when I can
 
Best suggestion is probably to talk to your bank. They are probably the ones with the most invested in you anyway.

All I can say is: stay away from microlenders: you could introduce yourself to so much more pain ...

I would think that your bank should be able to consolidate your debt into one account and hopefully organise something to pay it off over time.
 
If you are going to take a loan option, rather speak to a bank and not loan companies like "Woolworths" "Direct Axis" "RCS" etc.
 
They do help, but you have to pay them a fee... Would you not rather use that "fee" to settle your debts quicker?
Then there is another option where you add all your debt to your bond (ie you withdraw cash from your bond & use it to pay your debts) and only pay the increased premuim on your bond. But its not really a smart move because it just means that you now pay your 24 month debt over 240 months :( I would only recommend this as a LAST resort!
 
skoob said:
If you are going to take a loan option, rather speak to a bank and not loan companies like "Woolworths" "Direct Axis" "RCS" etc.
Click to expand...

Direct Axis is daylight robbery. I think their rate has now gone up to 30% !!!
 
very dodgy! I still have their "congratulations, you have been pre-approved" letter!
 
Chief Whip said:
They do help, but you have to pay them a fee... Would you not rather use that "fee" to settle your debts quicker?
Then there is another option where you add all your debt to your bond (ie you withdraw cash from your bond & use it to pay your debts) and only pay the increased premuim on your bond. But its not really a smart move because it just means that you now pay your 24 month debt over 240 months :( I would only recommend this as a LAST resort!
Click to expand...

dont have a Bond :(
 
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