Similar Stories to Liz Weston: How Debt Consolidation Can Go Wrong on Bing News

Daniel Montville knew a debt consolidation loan wouldn't solve his financial problems, but the hospice nurse hoped it would give him some breathing room. Montville took out the loan in 2015, but within a year he had fallen behind on its payments and on the payday loans he got to help his daughter, a single mother with four children. The payday lenders all but cleaned out his checking account each time a paycheck landed, leaving little money for necessities. The five-year, $17,000 loan Montville got from his credit union, for example, paid off 10 high-rate credit card bills, lowered the interest rate on the debt from double digits to about 8 percent and offered a fixed monthly payment of $375, less than what he was paying combined on the cards. [...] that he can no longer borrow - his credit card accounts are closed, and he would need the bankruptcy court's permission to replace his car - Montville finally is thinking about what he actually needs to buy versus what he wants to buy. Some of his clients consolidated their debt using a 401(k) loan or a home equity line of credit. Most importantly, their debt must be manageable and payable in the three- to five-year term of the typical debt consolidation loan. If it would take longer than five years to pay off the debt on their own, borrowers should consult a credit counselor or bankruptcy attorney. Liz Weston is a certified financial planner and columnist at NerdWallet, a personal finance website, and author of "Your Credit Score."

BING NEWS:
  • Best Debt Settlement and Debt Management Companies: A Comprehensive Guide
    Explore our in-depth guide on the best debt management programs available in 2024 to learn how these programs can help you consolidate debt, and lower interest rates.
    05/30/2024 - 4:37 am | View Link
  • Expert Guidance Awaits: Bromwich & Smith Launches Complimentary Debt Relief Services
    Bromwich & Smith invites individuals burdened by credit card debt to seize control of their financial destiny by availing themselves of a complimentary debt relief consultation. With a dedicated team ...
    05/29/2024 - 6:53 am | View Link
  • What Is Debt Consolidation?
    If you have several high-interest loan balances, debt consolidation can help you pay it off more quickly. Find out more.
    05/27/2024 - 6:34 am | View Link
  • Debt consolidation loans vs. debt management programs: Here's how to choose
    Debt consolidation loans are a lending product. As such, you'll typically only qualify for the best rates and terms if you have a good credit score. A debt management program may be a better form of ...
    05/23/2024 - 2:51 am | View Link
  • How does debt consolidation work?
    Debt consolidation can help streamline your debt and lower your monthly payments and interest rate. However, there are pros and cons to this option.
    05/20/2024 - 11:23 pm | View Link
  • More

 

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News