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Bush Walker
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Discussion Starter · #1 ·
about 10 years ago I consolidated my debt. The company I used lumped it all together ( about 30k ) and bargained down my debt/interest rates etc. took me 7 years to pay it off and I was done - then got married, had kids, racked up a little debt



We are thinking of taking all the CC's that re in my wife's name and consolidate those, but.......wondering if we'd be disqualified by using her last few thousand on her VISA to buy some bigger last minute preps?



Anyone know if, by spending a few thousand rapidly last minute before applying for debt consolidation, will bounce your chances out the window to get into the programs?
 

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Debt consolidation forces you to pay more in the long-run because the lower monthly payments mean a longer repayment period. Interest is a killer. Even at a lower % rate, the longer term means more money (how do you think consolidation companies make money? it's not a charity!)

If you have no way of climbing out of the hole except consolidation, I see no reason for those last minute payments to lower your chances. But I'd recommend thinking hard before you sign the dotted line.

As for your actual question: the most important part is to get everything right. Go over your application with a fine-toothed comb.
 

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If I am reading your question correctly ( you want to run up some extra debt and then have some else handle your mess and hopefully get a modification in the form principal reduction or rate mod) then I would say you revaluate your plan.

Debt is your problem and running up more is never a good solution. You need to start cutting lifestyle.
 

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Garbage Collector
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If your credit is already screwed and money is tight then pick the important things like the mortgage and food, screw the credit card companies.

It drops off your credit in 7 years anyways.

I cut all the cc's up and paid them off several years ago and limit my debt to the mortgage, everything else is cash purchases.
 

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Start paying off the smallest debts first. Debt consolidation seldom works as planned.
I second that about Dave Ramsey's material. Concentrate on low dollar preps until debt is under control.
 

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Quick way to reduce your credit card debt is as follows. Do not charge anything unless you have the funds in your checking account to cover the charge. As soon as you charge something write the check immeditely and place it in your desk until the bill comes. If you have a balance overwrite the check. Example if you charge something for $100.00 write the check immediately for $140.00. Do the same thing every time you charge something and by overwriting the check it reduces your charge balance faster when you mail those checks in. Do not charge if you don't have the funds to cover the charge.
 

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Dave Ramsey.

When I was younger he was not yet speaking, but I pretty much figured things out by myself. What he is teaching does work.

After a series of disasters and problems we are again in debt. This is how I am going to get out of debt again.

A new credit card has been gotten, with no interest for a year or transfer fee. I transfered what debt that I could onto it.

The remaining debt will be paid first, excepting that I MUST pay off the 0% card before a year is up. I am going to whack off the higher interest rate card for 6 months, then look at how fast that CC card is being paid off, and then I will know when I have to focus on the 0% card.

As for the household, my preps will help for a bit. No, I am NOT! going to eat them down I am building them up. But, on days when there is no time to cook I can fix an instant meal. This saves us a trip to McDonalds and with a family of 4 a McDonalds meal does cost. Some of my preps include canned stew, which can be opened and heated.

I looked at what I was spending on my weekly grocery trips: pop was a significant cost and so I switched to buying tea bag in bulk, and I now keep a pitcher made. The kids do not like the tea so I got them powdered drink mix which they must fix themselves.

I continue to prefer the groceries that are on sale, and to make meals out of them. Ragu and spagetti noodles and on-sale meat make a good meal for $6 for the family.

I bought inexpensive seeds and planted them: a $1 packet of seeds gives me 4 meals worth of vegetables for a family of 4, and because it has rained a lot I have barely had to water. We had a couple of sweet potatos that sprouted: I planted them and I hope to get 6 for every one that I planted.

I go to the library instead of the book store, and when i drive I try to make several stops to save on gas.

When you have kids, if you have $100 in the savings account you *WILL* see something educational for $99 that will teach the kids something that will benefit them for years to come: it is all part of parenthood. Make up a budget and include this sort of purchase in it and do NOT go over it! I had trouble with this one, LOL.

I intend to be out of debt again in a year. No consolidation, as somebody already said that increases the final total. Instead I was able to put almost half of it on a 0% discover card, which cuts my TOTAL interest in half.

Lastly, you need to have already changed your spending habits. The urge to teach your kids with education stuff is a very strong one and parents often go into debt. We did. But, we had to stop it and you do too.
 

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Bush Walker
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Discussion Starter · #9 ·
thanks all of you for the info - I think most of you get what I was aiming towards. Having already done a debt consolidation myself Im familiar with the inner workings and contracts and such. A lot of good advice given and I wish I had it about 10 years ago when I started digging my own hole.


Now with the wife and kids here debt is back but not in any way shape or form as bad as it was when i was single and stupid ( now just married and stupid ) heh heh


I think my wife is ready to consolidate with the same company I used - in the end over the long haul the "extra" money we'd be paying is not so bad compared to the reduced monthly payment we'd benefit from now.


I just think we see things getting way worse over all this summer, be it gasoline prices or ELEnin or anything really - and just wantt o make a last minute big purchase to secure food/water for all of us. Not looking to charge a BOV or a BOL or gadgets or anything like that - just food/water so we feel more secure with that aspect.




Thanks again for all the advice everyone
 
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