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    Debt

    I am getting tired of handling my debts. i already have a huge credit card bill and student loan. My credit rating is going down. I'm really worried whether I will be able to get a mortgage in future. My friend was facing the same situation last year and with the help of Kevin Thatcher he got his debt consolidated and now he is managing it pretty well. Should i also consider this option. I wonder whether it is actually worth it

    #2
    Originally posted by amandaa_w View Post
    I am getting tired of handling my debts. i already have a huge credit card bill and student loan. My credit rating is going down. I'm really worried whether I will be able to get a mortgage in future.
    Stop worrying about if you'll be able to take on more debt in the future (mortgage) and deal with what you've got already.

    List your debts with the balance and interest rate.
    List your monthly expenses.
    List your monthly take-home income.

    From there, we can help you come up with a plan to get out of debt and start living within your means.

    And no, debt consolidation isn't your answer and won't fix your problem.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      Originally posted by amandaa_w View Post
      I am getting tired of handling my debts. i already have a huge credit card bill and student loan. My credit rating is going down. I'm really worried whether I will be able to get a mortgage in future. My friend was facing the same situation last year and with the help of Kevin Thatcher he got his debt consolidated and now he is managing it pretty well. Should i also consider this option. I wonder whether it is actually worth it
      If you're worried about your credit rating, you should not be considering a debt consolidation firm.

      It all starts with your budget. Make a realistic budget and determine what you can afford to pay towards debt each month.

      List your debts, including balance and interest rate.

      If your rates are high, consider how the debt might be refinanced in a beneficial way. For example, credit card lenders often offer balance transfers with attractive terms. Sometimes you can find offers for 0% interest for a stated period of time (such as 12 months) and no balance transfer fees.

      If you are truly in over your head, debt consolidation or even bankruptcy may be the best solution. Is student loan debt forgivable in Canada? It isn't in the U.S.

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        #4
        What is Youe Entire Picture?

        Hello Amanda. I wouldn't worry about your credit score right now. If getting out of debt is important then let's figure out how to get there.

        Do you have a written budget? Once you see your income and expenses then it is time to make spending decisions. Can you afford to pay extra on your credit card? It's all a guess without a budget.

        Debt consolidation will be a bandage. Your debt amount will not drop. Your monthly payment might but you'll probably have a longer loan term.

        Can you post some income and expense numbers?
        Phil Danley
        100% Debt Free since 2014
        http://www.ConsumerDebtCoach.com

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          #5
          Originally posted by amandaa_w View Post
          I am getting tired of handling my debts. i already have a huge credit card bill and student loan. My credit rating is going down. I'm really worried whether I will be able to get a mortgage in future. My friend was facing the same situation last year and with the help of Kevin Thatcher he got his debt consolidated and now he is managing it pretty well. Should i also consider this option. I wonder whether it is actually worth it
          Your biggest issue is not your credit score or the ability to secure a home mortgage in the future. I think your biggest issue is that you aren't handling your debts, your debts are handling you. You need to get control of your money and it starts with getting on a written budget and not deviating from it under any circumstance. Debt consolidation is not a viable option for most people because you aren't eliminating debt you are merely shifting it to another lender. This blog article below outlines the pitfalls of debt consolidation and why it is not a substitute for sound budgeting and financial planning.

          https://www.daveramsey.com/blog/debt...lidation-truth

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            #6
            If you plan your budget in a systematic manner, I think you will be able to manage the debts well.

            Comment


              #7
              It sounds to me that you have a plan in place to deal with the debt. But it might be worth considering to slow the pay a bit to allow for a moderate amount of fun as you go.

              Getting out of debt has to also include some amount to live at the same time.

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                #8
                I agree that you need to be able to enjoy life a little bit during your journey to debt freedom. Otherwise you'll probably get frustrated and quit.

                Have you created a budget yet? Or assembled your income and expenses?
                Phil Danley
                100% Debt Free since 2014
                http://www.ConsumerDebtCoach.com

                Comment


                  #9
                  This sounds like a shill post, trying to get people to check out Kevin Thatcher. :/

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