Well a consolidation loan with good terms may work for you as long as you are going to continue applying every dime you can towards that loan even if the payment is cheaper. But before you do that I would be documneting all your debts and just start applying the extra money to ONE at a time. Dont spend a dime extra above the minimum on anything except the one you are focusing on, you will see that your debt will start disapering very fast.
The biggest problem with debt CONsolidation is the fact that we (yes, me included) do not change our lifestyles. Within a few short years we have run the credit cards back up and still owe the CONsolidation loan. That is why many will suggest cutting those cards first and never use them again.
Thank you both for your replies. I have heard of the strtegy of paying off one at a time and just doing the minimum on the others (I have heard to do the one with highest interest versus the smallest amount, how does one determine?)
Here is the problem I run into with that strategy Though I now have 3000 extra to pay toward this debt (across say 10 cards)the money I have comes in bi weekly, and the bills come in across all times of the month
So once I pay the minimum on the ones that come in the beginning of the month ,cause the MAIN One Im focusing this month is coming in on the 15th. However the “every dime extra” is not all in yet, cause its only the 15th, and If I DONT Pay what I have on it, it will be late and I will get a charge and then my percentage rates had shot through the roof, when I was delinquent (by a few days) because of this “creative” strategy”.
Its more of a money flow thing and scheduling thing. I am very committed to paying, and it is very frustrating cause if anyone ever looked at the debt, and the effort I have made every month to pay it off, (NEVER IGNORING A BILL.)
Do card companies agree to send payments at a specific time a month? It would be VERY helpful actually if they came in ALL at the same time, due at the same time.
Maybe I could request that.
What is bad about Debt Consolidation? Also, what about those ads to Debt Negotiation? Though I believe I called on one of those once and the fact that I DID pay my bills and debt collectors were NOT calling me, seemed to eliminate me from that option.
Again, I thank you for your insight and advice. Please advise on the strtegy of Highest interest rate versus smallest bill (As I have a huge balance on a card with a medium interest rate and a smaller balance with a higher interest rate, but actually the lower interest rate card with bigger balance is “costing” me more..does that make sense?)