Debt Problems

I have REALLY bad credit and I am also in debt. Know of anyone that will lend money to me to consolidate?

I have made my mistakes and now I am desperatly trying to fix them. I would like to know if anyone may know of a company that will lend money to consolidate debt, so I can get my life back on track. I have REALLY bad credit and a lot of debt. Please help!...

Public Comments

1. The last thing you need is to borrow more money. STOP SPENDING, See a debt counsellor, and pay off your bills
2. What you really need is to change your spending habits, not borrow more money. You can change your life by contacting or reading anything by Dave Ramsey. He changed our lives forever. No scams either. Honest legitimate help. Try it.
3. Dave Ramsey- if you don't want to buy the book(s) go rent them from the library
4. Are you on a budget? Instead of consolidating your debt- I suggest you start working on paying off your smallest debt and work your way up the debt list (smallest debt amount to largest debt amount). If you are not on a budget and can account for all your money each month then consolidating your debt won't help your situation. How do I know? Been there, done that about 8 years ago. Also some debt consolidation or counseling programs will appear the same as a bankruptcy on your credit report. I suggest you read the following from Dave Ramsey's website about Debt Consolidation. I have done debt consolidation and I totally agree with what he says- I am living proof. I also suggest you get your hands on his book The Total Money Makeover - read it, follow it and you will dig yourself out of your mess without a new loan (and by paying off your debt your credit score will rise...if after you read Ramsey you still care about your FICO score. From Dave's website: Debt Consolidation Myth: Debt consolidation saves interest and you have one smaller payment. Truth: Debt consolidation is nothing more than a "con" because you think you've done something about the debt problem. Debt consolidation is dangerous because you treat only the symptom. The debt is still there, as are the habits that caused it. You just moved it! Our counselors will not recommend debt consolidation for a client. The reason that we do not use debt consolidation to get out of debt is because it doesn't work. You end up paying about the same amount, which doesn't really help you pay your debts off faster. Most people end up taking on more debt after consolidation and several end up in bankruptcy.
5. The Truth About Debt Consolidation Myth: Debt consolidation saves interest, and you have one smaller payment. Truth: Debt consolidation is dangerous because you treat only the symptom. Debt consolidation is nothing more than a "con" because you think you'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't borrow your way out of debt. You can't get out of a hole by digging out the bottom. True debt help is not quick or easy. Larry Burkett, noted financial author, says debt is not the problem; it is the symptom. I feel debt is the symptom of overspending and undersaving. Our certified counselors will not recommend debt consolidation for a client. Why? Because debt consolidation doesn't work. 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't have a game plan to either pay cash or not buy at all. He also hasn't saved for "unexpected events" 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'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't it? Who wouldn't want to pay $460 less per month in payments? But they don'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 "lower payment". Not such a good deal after all. This example shows you why they are in the business - because they make money off of you.
6. Cut up those credit cards first and use cash only.