CC Debt Consolidation?

Anonymous · ‎02-09-2012

Hey guys, was hoping you could steer me in the right direction as I don't really know a ton on the subject, and have read mixed reviews on it. I have 5 credit lines at the moment with the balances of about $2400 combined spread fairly even. I don't plan on using any of these cards anytime soon, nor have I used them recently. I have however been, lets say challenged, in paying them on time. I do think that if it were one monthly payment, that it would be less of an issue for me, and could get it paid off probably in 4-5 months. Since I don't plan on using them, would there be any downside to doing such?

Oh, and for the record... I don't plan on applying for any loans or credit cards in the near future. The absolute earliest I would apply for anything would be in maybe 10 months, and that would be for a lease at an apartment.

Should I just better organize myself, by letting a consolidator handle it for me and having one payment? If so, are there any sites you'd suggest for this? I really just want this to go away, and get down to one or two cards max.

LilloEsquilo · ‎02-09-2012

@Anonymous wrote:
Hey guys, was hoping you could steer me in the right direction as I don't really know a ton on the subject, and have read mixed reviews on it. I have 5 credit lines at the moment with the balances of about $2400 combined spread fairly even. I don't plan on using any of these cards anytime soon, nor have I used them recently. I have however been, lets say challenged, in paying them on time. I do think that if it were one monthly payment, that it would be less of an issue for me, and could get it paid off probably in 4-5 months. Since I don't plan on using them, would there be any downside to doing such?

Oh, and for the record... I don't plan on applying for any loans or credit cards in the near future. The absolute earliest I would apply for anything would be in maybe 10 months, and that would be for a lease at an apartment.

Should I just better organize myself, by letting a consolidator handle it for me and having one payment? If so, are there any sites you'd suggest for this? I really just want this to go away, and get down to one or two cards max.

It's not that much money - why not just pay it off if you really could anyway in 4-5 months? The debt consolidation company can't do anything that you can't do for yourself, and they will have to charge you to do anything. If you pay less than you owe, it will come back to bite you at some point, almost guaranteed.

If you want advice, just suck it up, pay these off and go from there. Don't bother with shyster companies who promise you miracles while draining your bank account and messing up your credit. If you are truly in a bind, that's one thing but if you just want the debt to go away, pay it and it will.

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Anonymous · ‎02-09-2012

I've tried and said I'll do that, but just haven't actually disciplined myself to do so.

How would it hurt my credit... Does it show that I would have used a consolidator on my credit report?

LilloEsquilo · ‎02-09-2012

If you settle any debt for less than the amount owed it will ding your credit. If you don't plan to do that, why would you want/need a consolidator?

Just have some discipline it's not that much money. It sounds like you are looking for a "magic" way out, but if you aren't truly in dire straits, that's the wrong approach. Think about it - why would anyone want to give you credit in the future, when you've shown you don't have the discipline to pay what you already owe? Would you loan money to someone like that?

I'm not meaning to be harsh, just to tell you the best way to deal with this is pay it off. The seemingly easy way comes with a big price later on, you have to demonstrate you have what it takes to pay your bills to get more and better in the future. Since you can pay them in 4-5 months anyway, I'm not sure why you are trying to get out like this? But man up and do it, it's the right thing and it will pay off later for you.

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pizzadude · ‎02-09-2012

@Anonymous wrote:
I've tried and said I'll do that, but just haven't actually disciplined myself to do so.

How would it hurt my credit... Does it show that I would have used a consolidator on my credit report?

Is there a friend or relative with good organizaitonal skills that you could team up with to tackle this ? $2,400 is really a small enough amout of debt that could be paid off fairly quickly. IMO you don't need to get involved with payment plans, or consolidators.

Your credit would only be impacted if the consolidator negociated settlements for less than the amount owed, or if they missed a payment.

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Anonymous · ‎02-09-2012

Don't really plan on trying to skip out on any money owed... and I thought maybe they could just better organize it for me.

Pretty much, and no, definietly not in dire straits by any means. Just terrible organizational skill and discipline with this stuff.... And no, nadda chance in hell I'd loan money out to someone like me lol.

I guess that's why I was asking, and my main question, the price I'd pay down the road... I didn't know it had such a negative labeling going forward, or really know much at all on the subject.

That's what I'll have to do, and thanks for talking some sense into me.

seattletravels · ‎02-09-2012

I think you'll find that if you can come up with a plan to tackle the debt - it won't seem like such a burden. These forums are filled with people willing to help if you'll provide the info.

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nomoore · ‎02-09-2012

I don't know what your credit is like and if your organizational skills are pretty bad then it might be pretty crumby, but have you considered taking out a personal loan to pay them off? I didn't have the discipline to pay any more than the minimums on my CC with a $5700 balance. But I always, always paid my bills on time. So I took out a personal loan to force myself to pay more towards the debt. I also got a better APR than I had on the CC. At the same time it freed up the utilization on my CC which helped my score. I vowed to never treat a CC the same way again. If I don't have the money to PIF I don't use credit, period. The monthly payment to the personal loan reminds me each month that I never want to pay interest again. I don't have anything to show for the debt anymore and IT JUST ISN'T WORTH IT!

P.S. My credit score was 693 EQ when I got the loan to pay off my card.

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HoldingOntoHope · ‎02-09-2012

Is there enough of a credit line on any of the cards that you could balance transfer all the debt to one card? This may not be the cheapest or even the best way to go, but then you would only have to make one payment a month instead of five. Certainly even minimal organizational skills are enough for that.

As stated before I think your best bet is to find a financially savvy friend to sit down and help you work out a monthly budget and list of payment due dates. Most of us have at least one organized friend. Not talking about borrowing money from them, just organizational help.

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Chris123nTx · ‎02-09-2012

Seems like you are talking about two different things. One way would mean getting a loan for the total amount you owe on your credit cards, paying them all off and then just have the one bill to pay every month.

The use of a debt service like you seem to by saying, is geared toward people in trouble and generally unable to pay the credit card minimums. These services then take all of your credit cards, conact the cc companies and try to negotiate a reduced payment and balance. You then pay them some amount and they pay yourcreditors.

Many if not most of those services charge a small fortune to help you, and generally can leave your credit devastated for years and years to come.the more shady companies have you paying them, but they never pay your creditos and you are stuck having spent big bucks, your credit ruined and you still owing thd credit card companies.

Either set up autopay every month from you checking accounts, or at some point the lenders will cancel the cards and go after you with collection agencies.

Lots of people dont pay their bills for lots of reasons. You know what to do, it is just easier to pretend you are to flaky to do it.

Not trying to be mean, just calling it as i see it. Read the forums for all of the people here who have gone to hell and back because of credjt problems..i being one of them. I am so fortuate to finally have areal handle on debt and money and credit that you cojld not force me back into that hell for anything.

Good luck whatever you do.