Should I do a debt consolidation – or take out a loan to pay off my debt?

Credit and mortgage advice Forums Consumer Credit Debt Management Should I do a debt consolidation – or take out a loan to pay off my debt?

This topic contains 3 replies, has 4 voices, and was last updated by  Anonymous 8 years ago.

  • Author
  • #218508


    mostly credit cards about $12,000

  • #283698


    Better take a loan with convenient repayment schedule and pay off the existing debt.

  • #284182


    You should pay it off….

    Debt consolidation is taking out a loan to pay off the credit cards. Chances are next to Zero that a bank will lend you the money and the only other option is a secured loan and that means you have to have collateral (real estate).

  • #290514


    Well… If you do a debt consolidation, it is not exactly a loan in the literal sense of the word, but in essence it is a “wrap around” loan that will take all your debt (usually unsecured debt) and put them under the umbrella of a new loan with lower interest rates and payments. The obvious benefit of the strategy is that it will make it easier for you to handle, manage and pay off your debt being that you now have just one bill to deal with.

    Now as far as taking out a loan for your debt, this is another thing that some people do. But it will not be beneficial or advisable unless the loan offers lower interest rates than your existing credit card debt.

    Also another option that you may not have thought about is debt settlement, which is a debt elimination strategy where your debts are negotiated to be reduced by typically 40% -60% and then you pay it all off with one lump sum at this reduced rate.

    There are many things to consider and several ways to get rid of debt. I advise you to carefully explore your option and get professional counsel so that you can decide the method best for you.

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