Debt consolidation?

[luckyluchiano]

Any of you guys ever take all your debt and roll it into 1 payment? Ie. student loans, credit cards, etc.

Pros? Cons?

It gets annoying paying student loans and diff credit cards, I don't think I would actually go to a consolidation company but more so take out a larger loan to pay everything off then go at that one loan. I had to use some cards when I relocated and car stuff, I'm not underwater by any means I just find it annoying having to watch diff accounts. Feels bad man.

 

[2tonka]

Pros of debt consolidation is to of course lower your payment and at times lower interest rates. 

Cons would be if your credit limit for example on your revolving (credit cards) were to be over 50% it would lower your overall credit score.  I am a loan officer and at times we see that when people consolidate their debt into one credit card, credit card companies will either close their accts or lower their limits which will effect your open line of credit. 

Of cource consolidation is a good thing because it lowers payments which most can benefit today.  But Try to avoid credit card debt counseling.  This is where a company negotiates with your credit card companies and tries to lower the interest rate than what was agreed.  That puts a negative look on your credit. 
 

 

[guy2smooth]

Is it true that certain things go away from your credit report after a certain amount of years?  My boy told me this 

 

[crcballer55]

Is it true that certain things go away from your credit report after a certain amount of years?  My boy told me this 

They fall off after the account has been closed for 7 years.

Regarding debt consolidation... The number of payments isn't your problem. It's the debt itself and the lack of planning. The reason most people run up credit card debt is because they don't have an emergency fund in place WHEN the unexpected events in life happen. Not only that, you'll have more room to negotiate a better deal on stuff with cash too.

Don't get debt consolidation mixed up with debt settlement. By consolidating it, you're mixing higher interest debt with lower interest debt. As a result, you may inadvertently end up with a higher payment. Pay off the smallest debt first with any money left over at the end of the month. Once that's paid off, use that money to pay off the next smallest debt and so on.

 

[cj863]

We told you not to get them credit cards lucky

 

[stillin729]

damn man; I remember all your car financing threads

how much debt are you talking?

 

[young halo]

We told you not to get them credit cards lucky

i wished i listened to my OG potnas