Go to Jeff Salisbury LWGate Home Page.From: Jeff Morgan <Morgajs@parsec.com>
Subject: RE: Debt Consolidation
Date: Thu, 18 Jun 1998 13:30:43 -0600
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>Date: Mon, 15 Jun 1998 10:54:44 -0400 (edt) >From: Iron Foot <ironfoot@dorsai.org> >Subject: Debt Consolidation > > Greetings all! > > Thanks for the good advice about paying off debt before >accumulating wealth. Now, I have more questions about debt. > > I'm maxed on 3 credit cards and paying usurious rates on my car. >Is there a way to consolidate my debt and pay a lower rate? > > Thanks again! >Elliott A couple of ways: you might find an independent lender to offer a consolidation loan. Look out for two traps here, high rates is one, and the second is they will often want much more than the loan value as security; cars, furniture, other personal property, etc. Interest on this type of consolidation loan is not deductible. The second way is with a home equity loan, if you have equity against which to borrow. The term is usually longer (5-15 years), and the interest rate may be a little more affordable depending on your credit rating and the amount of equity you borrow. Be careful, there has been a lot of publicity lately about some outfits that use questionable methods like bumping the rate sky high on one late payment, talking you into refinancing and then financing high closing costs along with the deal, etc. Read everything carefully before you sign it, and get professional counsel for anything you don't understand. There are plenty of lenders out there, you can afford to shop around. Either way, get rid of the credit cards and learn to live without them, lest you find yourself in the same canoe in short order, this time *without* a paddle... Cheers. Jeff Morgan - morgajs@parsec.com - -
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