First thing, you do not need a debt CON-solidation loan. That fools you into thinking that debt is the problem when i is really just the symptom. The problem is the behavior that got you into debt. I know because I did it too, only with a lot bigger number than you. I will say that I am a huge fan of Dave Ramsey – I’ll let you do your own research on his website.
First thing is: you must get on a budget and determine how much money you can throw at your bills each month. Stop investing until your bills are paid. Have a yard sale. However you can scrape up a dollar within legal means, do it.
Here is what I would do:
1) I would take $9K out of savings, leaving a $1K Emergency Fund
2) I would pay off debts from smallest to largest, regardless of the interest rate
3) I would then rebuild my savings to cover 3-6 months of household expenses.
After that, it gets fun when you get to keep your money and get rich.
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan allows you to condense your monthly!–payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several–old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
First thing, you do not need a debt CON-solidation loan. That fools you into thinking that debt is the problem when i is really just the symptom. The problem is the behavior that got you into debt. I know because I did it too, only with a lot bigger number than you. I will say that I am a huge fan of Dave Ramsey – I’ll let you do your own research on his website.
First thing is: you must get on a budget and determine how much money you can throw at your bills each month. Stop investing until your bills are paid. Have a yard sale. However you can scrape up a dollar within legal means, do it.
Here is what I would do:
1) I would take $9K out of savings, leaving a $1K Emergency Fund
2) I would pay off debts from smallest to largest, regardless of the interest rate
3) I would then rebuild my savings to cover 3-6 months of household expenses.
After that, it gets fun when you get to keep your money and get rich.
Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan allows you to condense your monthly!–payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several–old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
If you have 10k in the bank, why not use half of it on your debt. That would make things much more manageable.
Also, a good resource is…
Good Luck.