UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: windyelliott Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: Consolidating credit debt Date: 11/4/2003 9:32 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I agree with ArgentLupe.

If you haven't changed your spending habits, consolidation is a bad idea. If on the other hand you have been able to stop spending then I would consider a consolidation loan only if it is thru a reputable bank for a fixed interest rate. I would then put ALL my debt into the consolidation so that you only have one payment for debt reduction a month. I would then try to make double payments on that loan until it was gone. This should save you a significant amount of interest and get your debt paid off much faster then a typical snowball.

As it has been stated, doing this before you have reformed yourself if a bad idea. Many folks will see the consolidation loan as free money and instead of paying off the debts and closing the accounts, will either forgo paying some of them off for a shopping spree, or they will not close the paid off accounts and then run them back up.

I looked at paying off my debt as a learning process. Yes it was hard and painful and is taking what seems like forever. But I was a habitual shopper and it took that kind of lesson to make me scared enough of charging to stop me.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement