Home Forums Hunting & Shooting Hunter's Campfire Any downside to debt consolidation?

Last two years I've been cutting expenses to the bone paying off debt.

I could consolidate the rest at a much lower interest rate. Keep on living as I am, and get out of debt months earlier.

I expect my currently excellent credit rating might take a hit in the short term, but I ain't gonna make any purchases until I'm clear anyhow.

OK, whats the downside?

They are making money somehow...

Dave Ramsey can help, Birdie.

I’ve never heard of any benefits from a consolidation loan. Never.

Maybe others here who maybe have done it can contribute. I’m thinking Dutch, Longbob,,,,,0thers.

Every bank I have ever dealt with wants to consolidate.


They talk about interest rates and cash flow and such.


It has cost us money every time.


If you can save interest and pay down the principal faster, I would say in your instance that you should be fine.


Fugging credit score is a joke. What are you worried about a your credit score for anyway??

Ole Dave Ramsey would say get out of debt.

That may be the best play, IMO.

DF

The reason you have a good credit score is because you owe so much and make the payments on time.
Mine has gone down some because I have no debt.

If you have good/ decent credit now and a good job, why not consolidate? It can save you hundreds each month in credit card payments...My wife and I did it through Freedom Plus 6 months or so ago, and I havent seen any drawbacks yet. Just make sure you do it through a good reputable company. We got in touch with Freedom Plus through lendingtree.com.. There are some companies out there that sign you up then fight it out with your creditors for weeks over the balance they will pay behind the scenes. Meanwhile, you end up with late payments on your credit while they duke it out before you even know what's happening behind the scenes.

Yep...nothing's free.

Something a wise scholar and educator should already know.

Consolidation to a lower interest rate should save one some coin, if he does not extend his payment schedule. Of course front end fees should be included in ones calculations, and I would not add debt to my home financing. Years back we refinanced our home twice in 12 months for lower rates and incurred no additional fees. Just banks wanting our business.

Pay off the highest interest rates first.

I've never worried about my score. If I ask the bank for $$$, they always come through.

Dave Ramsey is an idiot ! There I said it, and it deserves repeated.

Credit card debt is unsecured debt, hence the high interest rate, and if are dumb or unfortunate to have a lot of it, then yes borrow to pay it off and then put them away. The rest of your debt needs to be looked at in an importance to thought, it is far better to quit making a car payment with a 8-9 % interest rate than to borrow more money against your home @ 5 % and lose them both.

Me either, but I believe the problem usually is people consolidate debt, free up their credit cards, but then continue their old spending habits that got 'em into trouble in the first place and get even more in debt by continuing to spend more money than they're making.

I don't really have any old spending habits, and I currently have tens of thousands of available credit on hand I haven't touched.

I'm looking for a downside in consolidating but I ain't seeing it. I'm just wary as all get out is all.

Sheer fuucckin genius here.

Wents to school with AOC, no doubt.

Your discipline will bring you out of this.

Sure doesn’t hurt to ask like you’re doing.

I guess its here we should ask you to give us your credentials on debt management, financial planning and character evaluation.

I was wary as heck too. See my post above, just make sure you talk to a reputable company. The people that get in trouble with debt consolidation are the ones with bad credit already and have to use a less than reputable company to consolidate...

That was typed on my phone I have since fixed a couple typos, but Ramsey's spots haven't changed.

That's coming from some one with a low earning capability. You are way better off increasing your earning potential , than your debt.

You nailed it. Most consolidate their debt and then promptly started digging new debt.

I don't sleep on the floor and I can afford to air condition my home, any other questions ?

Uhhh,,,,yeah. Got it now.

Thanks for the tip, I'll look 'em up.

Its two credit cards that I have making me these offers, obviously they think that someone in my position right now is gonna consolidate so they would rather I pay that lower interest rate to them rather than to someone else. One of 'em is at zero balance, has been for some time, obviously they would like some of my business. Both are offering loan amounts equal to my total unsecured debt.