3 Thoughts on debt consolidation help and advice!?
  1. Reply
    All Natural Honey
    January 3, 2013 at 6:08 am

    Don’t take any unsecured debt, and turn it into secured debt.
    We made that mistake. We did a debt consolidation, and took out a second mortgage on our home. Which turned it into secured debt.

  2. Reply
    rebelbranch
    January 3, 2013 at 7:07 am

    Absolutely have to disagree with above. If you are unable to make payments on unsecured debt, all they can do is come after you for the cash. If you can’t make a payment on a second mortgage, the lender can take your house. Secured debt will have lower interest rates but at the risk of losing your property.

    A better strategy is what is called the debt snowball. Make a list of your debts, smallest to largest. Pay minimums on all of them then pay extra on the smallest until you’ve knocked it out. Then take those payments and attack the next smallest debt. The payments will “snowball” until you are quickly working down later debts.

    Before debt reduction, however, you’re going to have to change the behavior that got you there in the first place, which is spending more than you make. You need to live on a written budget that doesn’t exceed your income. Get a second job if you must.

    Go to http://www.daveramsey.com and explore the site some. These ideas are his and there are many debt reduction ideas to explore.

  3. Reply
    ekibitz
    January 3, 2013 at 7:44 am

    Here’s a debt elimination calculator. It will give you a complete payoff schedule month by month (just click the ‘Show Amortization’ button).
    http://debt.bizcalcs.com/Calculator.asp?Calc=Debt-Elimination

    This site has some other calculators that may help…
    http://debt.bizcalcs.com/

    Good luck!

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