Debt Consolidation?

seanmick · #1 (**permalink**) 01-27-2008, 09:03 AM

I am about 4 thousand dollars in debt. They were originally hospital bills but have been forwarded to the collection agency. They are about a year old now and as much as I don't want to pay them I figure it's better to get it over with now and not let it remain on my credit. I was looking to consolidate my debts. The hospital bills are sent to 3 different agencies so I want to consolidate it and perhaps lower it (I've heard things about that but I don't know how it works.) I was curious about the process, trusted companies. I have a max of 60 dollars available p/ month. Come on people, give me some answers. I wish there was something I could do because I was on medicare until I was 18, now 21 and somehow in debt. If someone knows some alternatives to actually PAYING then feel free but right now I'm looking to reduce and simplify my debts

Tango · #2 (**permalink**) 01-27-2008, 09:31 AM

I have a couple suggestions for you. First, you should get a debt consolidation quote from a reputable Debt Consolidation Services Company. You can find one in the phone book, or you can find a bank that offers this service.

They will loan you the money to pay off your debts, aggregate your debts, and then charge you a fair interest rate. A lot of times it is slightly less than your creditors will charge you.

Second, you should inquire about your state's basic health insurance, if you don't have an employer sponsored plan. This can save you a lot of regret.

Best regards,

Tango

vanman2099 · #3 (**permalink**) 01-28-2008, 02:03 AM

If your credit is already shot you could file for bankruptcy I bet you would qualify for unexpected medical expenses and since you are young and are fairly new to having any credit you'll bounce back faster.

I honestly would not pay the debts since they are 1.5 years old. After 2 years they have less of an impact on your credit score; if you settle them now you're going to take a big hit on your credit probably until they are 2 years old again.

graham08 · #4 (**permalink**) 02-18-2008, 12:22 PM

If you want to get if of the debt quickly then you're going to need to consolidate them with a good provider. If not then just pay what you can and try not to worry about it too much. But I guess you do have to remember that they have debt colletcion agencies onto you now, so I'd watch your back at the same time.

oceanview · #5 (**permalink**) 02-18-2008, 02:34 PM

I've filed for bankruptcy before and it takes a long time to rebuild after that - 7 years on your credit report. It is also harder to declare bankruptcy now so you may not even be able to.

rachael24 · #6 (**permalink**) 03-11-2008, 11:50 AM

Consolidating debt is the best way to do it, with a good provider. Let me see what I can come up with.

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