Considering My Options
By Topper on Feb 15, 2009 in Finance
I was curious if anyone could tell me a bit about debt consolidation. My wife and I are finding that we have so many different bills that it’s starting to become tedious making sure that there is money in the right account for the right amount on the right day! A friend mentioned consolidating everything together from our student loans to credit card to make it easier to pay monthly. They said there may even be a chance that our monthly payment would be less than what we’re paying now for all our individual debts.
Has any used debt consolidation? If we decide to try to consolidate all of our debt, should we go through a traditional bank or an online lender? Can we use it to pay off loans that we got before we were married? We were also wondering if we could include our mortgage payments. We really want to make sure that we are using our money the best way, especially with things the way they are economically. Our jobs are both secure now, but who knows what will happen in the future with so many lay offs happening. So any money we can save would be great.
hilary | Mar 5, 2009 | Reply
Debt consolidation can be a great option because it does offer a single payment instead of many. Oprah tells me that simplicity is a good thing, so I’m going to believe her! I don’t know about paying off your mortgage though.
Brooke | Mar 5, 2009 | Reply
I’m not sure that you can pay off a mortgage with debt consolidation loans; I mean, you can, but I would think that your mortgage interest rate would be less than a consolidation loan. Mortgages use collateral, which can give them a lower rate I think!
Autumn | Mar 5, 2009 | Reply
It’s totally crazy how nothing seems secure anymore; I think you’re right to be concerned about saving money in case of a layoff. I know so many people that have been laid off that now I’m hording my cash, just in case.
Lillian | Mar 5, 2009 | Reply
The best thing about a debt consolidation loan is that you never forget a payment! I feel like such a ditz, but I’ve missed a lot of payments because I forgot about a bill. It’s not exactly the way to a secure financial future, I’ll tell you that.
Victoria | Mar 5, 2009 | Reply
Just remember that interest rates are king. You might end up LOSING money instead of saving it if your student loan rate or credit card rate is actually lower than a debt consolidation loan. I think you’re definitely wise to look into it though!