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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » how to qualify and where is the best place for debt consolidation loan?

how to qualify and where is the best place for debt consolidation loan?

i have about $5,500.00 in credit card debit. i am 22 and two out of the seven accounts happen when i was 18, the other five happen after i was laid off from work approximately a year or so ago no more then 18 months. i have no idea how to qualify or where to even look for a debt consolidation loan. i really need help out of this very bad hole i made for myself i don’t even know where to begin!!! please all advice can help thank you!!!

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3 Responses to "how to qualify and where is the best place for debt consolidation loan?"

  1. Sharon T says:
    Try a local non-profit credit counseling service. Their fees are minimal and they will offer some education in money management as well.

    Avoid trying to do anything like this online. Scams abound and you will end up worse rather than better.

    Meanwhile, consider getting a second job to help you pay off this debt so you can make a new start.

  2. andy says:
    Sorry, but as I found out, debt consolidation loans or debt companies don’t usually work well. If you don’t currently have any income coming in then you can’t get a loan. If you are working, then I would suggest that you focus on one credit card at a time to pay off. If you aren’t working and can’t make your payments then bankruptcy is always an option.

    No matter what, I would get rid of at least half of your credit cards, you don’t have to close the accounts but I would get rid of the cards so you don’t get stuck in the credit card trap.

  3. Dan B says:
    Although you MIGHT get lower monthly payments, the overall cost will be higher over the lifetime of the consolidation loan. You will be extending the payoff times to something like 5 years – costing you more interest. $5,500 is not really such a bad financial hole. You don’t say how much per month you are paying on these cards so I really can’t recommend anything.

    Look at your balances. There are three schools of thought.

    a. Work on paying off the card with the highest interest. That will save interest charges over the life of your debt. Pay the minimum monthly payment on the other cards.

    b. Work on paying off the card with the lowest balance. That will free up extra money sooner to apply to the next lowest balance. Pay the minimum monthly payment on the other cards.

    c. Work on paying off the card with the highest monthly payment. Like b above, it will free up extra money sooner to apply to the next highest monthly payment. Pay the minimum monthly payments on the other cards.

    B & C will cost more in interest than A would, but not any more that if you did nothing. Any choice you make will not cost as much as getting a consolidation loan.

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