Thread: Debts Consolidation

Fellow PPOer's, do you know if you consolidate your student loans, credit card debts and all, does that significantly change my credit profile. The only thing I am concerned about is I don't want to consolidate now if that lowers my credit profile in a really bad so much so that in future once I have job and all I can't buy a house or sth because of this consolidation thing. Right now I am a student and my monthly GA salary is not enough to pay for all my bills/rent etc...and I also don't want to live like this for another year or so when I finally graduate. Any advices will be much appreciated.

You have to be careful whether its through a credit counseling agency or just a straight consolidation loan. Through the CCA, sometimes it will be flagged as settlements or reductions in payments and can have negative impact.

Having one single loan, all consolidated and probably giving you a lower percentage rate will appear as all the other bills paid off, and a new larger loan open. Bad thing is higher balance to credit limit, which is a small ding, but probably saving money is the most important thing right now...and hopefully you get the right consolidation loan so its interest over the course of all your debts is significantly lower. As you pay down the higher balance your available credit ratio will improve and thus your points.

Thats how I understand it.

With student loans, you're better off consolidating and being able to pay your monthly bill, rather than having several missed or late payments.

Thanks for the advices!

Since we are on the conversation of money does anyone know where the closest money tree is to Milwaukee Wisconsin?? Any help would be appreciated!! lol

"VKG4LFE" wrote:

Since we are on the conversation of money does anyone know where the closest money tree is to Milwaukee Wisconsin?? Any help would be appreciated!! lol

Mail those comments to:

Santa Clause

Santa's Castle

North Pole, end of the world

Zip code 122507

He also knows where the Pot of gold is at that sits at the end of a rainbow.

Sweet Tark, thanks!! I knew somebody had to have the answer!

If they are variable rate student loans, you had better get on it. The rates will rise almost 2% after July, 1.

I consolidated my student loans and it certainly simplifies things, although I got my loans a while ago and I'm paying an ungodly 6% interest on them. :cry: (that's higher than my mortgage!)

6% really isn't that bad when you think about it. Just think how high some people's credit card interest is!

If you want or can..when you make a monthly payment..pay the next months principal with it, and it will cut down on the duration of the loan..