Debt Consolidation
Nrthstar
Registered User regular
Registered User regular
So over the years, I've successfully lived beyond my means and had a spew of bad luck here and there so my debt has risen to the point that I'm seriously struggling to keep afloat. I've dropped out of school for the time being and I am working 2 jobs right now so I can be stable again before this summer when my band wants to tour.
Point of it all, I'm looking for a debt consil loan that would be willing to take on what I guess would be described as a high risk, if there is such a thing. Or if anyone has creative solutions (beyond eating ramen/cheap cheap food, walking or catching rides when I can, and not buying unnecessary items).
This all began when I was layed off from Circuit City (talk about a sinking ship).
Point of it all, I'm looking for a debt consil loan that would be willing to take on what I guess would be described as a high risk, if there is such a thing. Or if anyone has creative solutions (beyond eating ramen/cheap cheap food, walking or catching rides when I can, and not buying unnecessary items).
This all began when I was layed off from Circuit City (talk about a sinking ship).
"Shut up and Die"
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A lot depends on whether you see yourself coming into a reliable income within the next few months or so. If you do plan on having a decent income very soon a lot of credit cards will offer you 0% APR on balance transfers for a year if you open a new card.
Make NO mistake, more credit debt is murder. MURDER. Reread that sentence. Do not accumulate more credit debt! But if you find the right offer (AND READ ALL THE FINE PRINT) a 0% APR on balance transfers can stop the juice from running for a year or so. If you can't pay off the majority of your debt in a year do not take this path.
The fine print you need to look for - most cards, if you miss a single payment will ratchet up your interest rate so hard you will be bleeding for years. Also, many cards offer a teaser transfer APR then after its up proceed to rape you. Another common rape is that many cards will charge a percentage on balance transfers - you want to avoid these as well. So you must be VERY VERY CAREFUL AND READ ALL FINE PRINT. But if you are hurting in the short term a break from interest can really help if you find the right offer.
I did this myself about 2 years ago; didn't change the amount I owed but did save me about $50 in interest a month for a year - $600, I'll take it.
So what kind of debt do you have?
We can't really talk about this intelligently without answering Thanatos's questions.
I will tell you this much: debt consolidation without collateral (real estate, life insurance, or at least a very nice car) is largely a myth. There is legitimate student loan debt consolidation, and there are plenty of predatory lending companies that will be happy to give you a "consolidation" loan with a fuck-you-in-the-ass interest rate, but for most intents and purposes you don't want to be thinking "consolidation." You want to be thinking debt reduction and coming up with a reduction strategy requires having the actual numbers involved.
the "no true scotch man" fallacy.
Aye, this is true. I actually got a solicitation mail from CapitalOne (or something like that) a few weeks ago that advertised their "Consolidation Loan"... at 23% APR. I pity the fool that would take such an offer... it makes credit cards look like intelligent borrowing practice in comparison. Definitely look at those interest rates before you sign on to a consolidation loan, because it's meaningless if the interest rate is equal to (or higher) than your current loans.