Is it better to pay off your credit cards with a debt consolidation or just pay it off yourself?

Question

especially if you dont' have the money to pay off the monthly balance? i have $8,000 worth of credit card debt and not sure if it was a good idea to get a debt consolidation loan to pay 3 of 'em.

Answer 1

Keep your head up--you can do this yourself! The debt probably wasn't created overnight, and it is going to take some time to work through to pay it off. Here a couple of quick tips for getting out of debt, and staying out:

1. Stop charging

2. Pay debts off smallest to largest, regardless of interest rate

3. Divide credit card minimum payments in half and pay that amount twice a month.

4. Make micro payments (commonly referred to as snowflakes) any time you receive extra money.

5. Don’t waste time with balance transfers, unless you owe more than $10k.

6. Find part-time work.

7. Close out your newest accounts as you pay them off.

8. Get angry! Make debt repayment your top financial priority and focus all your energy on getting out.

Answer 2

Debt consolidation affects your credit; you are marked as a "slow pay" and your credit rating goes down. If you can manage to pay them yourself, even if it takes a long time, that's the better way to go about it.

If you don't have the money for the minimum payment every month, then maybe debt consolidation will work out for you, because not making the payment will mess up your credit also. But cut up your credit cards and don't get new ones, so you don't go through this again in the future.

Answer 3

I was in debt about till about 6 months ago. I found this free E-Book that basically answered every single one of my question and helped me get totally out of debt. Its at http://www.inarinbows.com/debt .It was %100 free and within 20 seconds your emailed both ebooks. I now am able to answer the phone every time it rings and actually know for the first time in my life its not a creditor.check out I'm sure it will answer your question as it answered all of mine.

http://www.inarinbows.com/debt

Answer 4

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:

http://urlhawk.com/29x

Answer 5

Ammm...try this article maybe it'll help you

http://loan-answers.com/articles/topics/...

Answer 6

as long as it is a fixed rate heck yes as you have a begining and an end. when you look at revolving cards very little goes to the principal

Answer 7

depends on the fees they charge

are you increasing or decreasing your debt

do they do any renegotiation

the only way to get out of debt is to STOP using credit, and pay every month, double or triple the minimum charges. . . .slow but sure you will eliminate the debt

Answer 8

Yourself, those consolidation places are businesses. All businesses exist to make money.  They tell you to stop paying the cards and instead pay them, they hold your money.  The idea is that by withholding payment from the banks your cards are issued from, the consolidator can make the banks desperate.  But, here is the issue - BY NOT PAYING BANKS YOU HAVE TRASHED YOUR CREDIT.

Further, the debt consolidator will pocket a portion of your payments and gain interest off of it.  WHY PAY A MIDDLE MAN.  

1 - Your credit gets trashed. So, even if you have paid off the debts - it will be on your history for 7 years that you were unable to make payments on time.  The consolidation companies conveniently forgot to mention this in their commercials.

2 - you still end up paying back all of the debt, usually over a longer period of time.

3 - the company gets free interest accruals while holding your cash.

Answer 9

My favorite financial advisor is Dave Ramsey.  He has baby steps you follow to get out of debt.  I think you just need to be wary of any scams or fees.  Otherwise pay them off yourself smallest to largest.  Check out his site and you can even listen to his shows.  http://www.daveramsey.com/radio/home/

He'll tell you if its a good idea or not.

Good luck.

Answer 10

If you CAN pay it off yourself, that's great. If it would take light years, you might just look into a credit counseling agency. They can negotiate away part of your debt for you as well, which will make the job a little easier. Try http://www.womenindebt.info. Good luck!

Answer 11

consolidation because it makes it less stressfull