credit consolidation
 

Has anyone done credit consolitation? Or what do you think of the consolidation thing? Does this seem to work?

When we had a lot of expenses to take care of that we just couldn't seem to get on top of, we refinanced our house and took care of it that way. Made getting our house paid off a longer process but kept the payments within our ability to pay and it was only a single payment each month. Down side, it was a single payment that had to be paid all at one time, no spreading things out over more than one payday (DH and I got paid on opposite weeks).

Some experts would advise against that, taking unsecured debt and tying it to your home. Now if you can't pay, you may lose your home. On the other hand, you get a tax deduction.

Please just be very very careful. There are soooooooo many scams out there right now.

if you can get a (legitimate) loan from your bank to cover all of your bills- so you then have one payment to pay every month it can be a good way to go sometimes- but you need to really be (self-controlled) and not start any new debt- cut up the credit cards- cut back on everything- and make your payment on time every month-
i had to get a consolidation loan when i had unexpected medical expenses, the car needed extensive repairs & things started piling up- i sat down with my bank loan officer with all of my bills- we rolled everything into one affordable loan- so i paid off everything- and had that one payment (which was about 1/3 of what my regular payments had been) bought absolutely nothing on credit- no new bills
there are some (expensive) and dishonest agencies out there that offer debt consolidation but i recommend going to your bank- then you only pay interest- not hidden fees...and you have the control to make sure the bills are paid off- sometimes those (agencies) don't pay them like they should.

I did it many times when I was younger and it worked great. We always did it through a bank and never had to have collateral as our credit history was unblemished. If you decide not to go that route you might want to talk to your insurance agent and have all of the bills to them ( homeowners, auto,Etc.) set up for monthly payments instead of 4 or 6 large ones due throughout the year. It costs 2-3 extra $'s to do this but so much easier on the wallet overall. Good luck to you.

Be careful regarding monthly, quarterly, etc. payments for house insurance: a few homeowners in my area have noticed the insurance companies are charging exorbitant fees for not paying yearly; $100 to 300 for installment plans.

I used to work at a Bank in Houston and they always worked with consumer credit company who helped clients for free. the Bank is where they got their money. payment arrangements were set up and the Bank went along with it. see what you can find where you are. free and talk to a company you owe too and see what they say. anything to prevent people from going Bankrupt should be welcome.

If you have a credit union that's a good place to go, too.

Following Dave Ramsey's advice, talk to your creditors and attack bills by starting with the highest interest rate accounts. A Dave Ramsey course (offered through many churches) might be beneficial. It's not easy or fun but it does teach people/families how to budget. My thoughts are with you as you find a solution that works for you.