What can you do if you are falling behind on all your bills, is debt consolidation a good way to go , ?

Question

what is a reputable debt consolidater or what can you do

Answer 1

Hi, I'm the father of two young children... I know how it hard to bring happiness at home when you are drowning into dept ... I've spent hours online searching for ways to settle my dept... Thank god, I've came across this site http://shrunklink.com/awtc ... Me too I was falling behind all my bills... Now, I no more feel the stress of unpaid bills and creditors harassment...

:)

Good Luck

God Bless

Answer 2

No! You will just add troubles and problems into your life. You should live within your means.And try to have extra job so you can have extra income to pay your bills. You should spent your money wisely.  

Answer 3

Try a service that is with the BBB. That way you know they have good service to their customers and do what they say. The company in the link below will give you a free consultation, they can help cut unsecured debtup to 70% always weigh your options.

Answer 4

Try using: http://DebtAnswersNow.com

I used their service a couple months back and they consolidated all my debt and lowered my total debt 40%.

Answer 5

I use AFS. American Financial Services. I pay them a $35 fee on top of what I have to pay my creditors, total $440 a month for $15K debt. Ouch! Before you join any debt consolidation, you should know that it'll JACK your credit up. You will not be able to buy a car while in the program, it's as close to bankruptcy as you can get. But for many of us, it's the only thing left to do.

I don't think I'll ever be out of debt, that's just how it goes I guess.

Answer 6

file for bankruptcy.

Answer 7

Debt consolidation is not free.  You will owe more debt than you started with if you use one.  Your debt will alsos last longer because they lower your payments each month by adding more months (years) of payments.  Here is a plan that eill help you.  If you work the plan, the plan will work for you.

1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :

Debt #1 (highest interest): minimum payment+ extra payment

Debt #2 (middle interest): minimum payment

Debt #3(lowest interest): minimum payment

Debt #1: paid off

Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment

Debt #3: minimum payment

Debt #1: paid off

Debt #2: paid off

Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money?  Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

Answer 8

Yes debt consolidation can be a good way as the debt counselors of a debt consolidation company more often have relationship with the major creditors and thus they can help you to reduce your debts. And after analyzing your debt and income they would provide with an affordable debt repayment plan.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.