Divorce loan to consolidate debt?

I am a divorced dad who has been left deeply in debt and with bad credit due to the divorce process and bitter ex.

I want to consolidate the debt down to 1 lender and make higher principal payments and repair my credit but I am struggling to find a good lender, who will lend to me.

I have a good job, make a good living and just need to get this under control.

Anyone recommend anything?

Divorce loan to consolidate debt?

Clarkhoward.com

He has a nationwide radio show and is excellent with Financial advice. They even help some people on the phone after the show. You know you%26#039;ll get excellent advice there.

Divorce loan to consolidate debt?

Go to a credit counseling service.

Divorce loan to consolidate debt?

Debt consolidation is nothing more than a %26quot;con%26quot; because you think you%26#039;ve done something about the debt problem. The debt is still there, as are the habits that caused it - you just moved it! You can%26#039;t borrow your way out of debt. You can%26#039;t get out of a hole by digging out the bottom. True debt help is not quick or easy.

Debt Consolidation Statistics

A friend of mine works for a debt consolidation firm whose internal statistics estimate that 78% of the time, after someone consolidates his credit card debt, the debt grows back. Why? He still doesn%26#039;t have a game plan to either pay cash or not buy at all. He also hasn%26#039;t saved for %26quot;unexpected events%26quot; which will also become debt.

Debt consolidation seems appealing because there is a lower interest rate on some of the debt and a lower payment. However, in almost every case we review, we find that the lower payment exists not because the rate is actually lower but because the term is extended. If you stay in debt longer, you get a lower payment, BUT if you stay in debt longer, you pay the lender more, which is why they are in the debt consolidation business.

Debt Consolidation Example

For example, let%26#039;s say you have $30,000 in unsecured debt, including a 2-year loan for $10,000 at 12%, and a 4-year loan for $20,000 at 10%. Your monthly payment on the $10,000 loan is $517 and $583 on the $20,000 loan, for a total payment of $1,100 per month. The debt consolidation company tells you they have been able to lower your payment to $640 per month and your interest rate to 9% by negotiating with your creditors and rolling the loans together into one. Sounds great, doesn%26#039;t it? Who wouldn%26#039;t want to pay $460 less per month in payments?

But they don%26#039;t tell you that it will now take you 6 years to pay off the loan. This may not sound that bad to you at first unless you realize how much more you will actually pay in additional payments. You will now pay $46,080 to pay off the new loan vs. $40,392 for the original loans, even with the lower interest rate of 9%. This means you paid $5,688 more for the %26quot;lower payment%26quot;. Not such a good deal after all. This example shows you why they are in the business - because they make money off of you.

Divorce loan to consolidate debt?

In most instances, it is never a good idea to create more debt to get out of debt.

The first thing to do is to call high interest lenders and negotiate for lower interest rates. Credit card companies will often be willing to reduce interest rated.

Next is to negotiate billing dates so you do not have many different bills due all at once. If possible stagger the big bills through out the month.

Third, Simplify: cut up your credit cards...live within your means, reduce your phone, television, entertainment, and restaraunt bills. Eliminate unnecessary bills, If you have a cell phone, and a land line, consider eliminating your land line and using your cell phone only (about a $50.00 per month savings). Forgo the Starbucks everyday. Make it a twice a week splurge. Do not quit all luxeries, reduce the number and the amount you spend on them. Use this extra money to pay off your bills...speaking of which,

Fourth--pick one major bill, and focus on that bill by paying a larger amount than the minimum. Pay the minimum payment on the other bills. Once you have the first bill paid off, use the money you were paying on the first bill plus the minimum amount on the second major bill. When you get this second bill paid off, use the money from the first and second bills plus the minimum payment of the third to pay off the third bill, etc... The benefit of this is that you feel like you are accomplishing something when you pay off each bill. If you simply pay a small amount over the minimum, you will never be able to pay into the principal and will be paying on the interest for years to come.

Last but not least....do not create additional debt.

This is sound advice and has worked for me in the past. Most debt consultants will tell you not to create debt to pay off debt.

Divorce loan to consolidate debt?

Here is the guy that will be able to help you organize your finanical mess where you can learn to breathe and not worry! He has approved lenders and counselors that will help you every step of the way.

I listen to him everyday on the local radio station and here is his website:

http://www.daveramsey.com/

The following is from his website:

%26quot;Dave Ramsey the voice of financial wisdom in today%26#039;s debt-ridden can be heard on www.KLIF.com weekdays from 1p - 4p. Dave offers life-changing financial advice. His show focuses on life, love, and relationships, and how they happen to revolve around money. Dave says, %26quot;It%26#039;s where life happens...caller after caller.%26quot;

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And remember not all Women are blood suckers and will bleed you dry of emotion and resources.

Good luck with fixing your problems and moving on!