Want To Reduce My Debt....is This A Good Idea??
Hello all...
I have 4 major bills I would like to reduce(2 credit cards, car loan, school loan) or possibly eliminate. I guess my main goal is to reduce my monthly expenses and cash outflow. Is it possible to get a loan of some kind, pay off all 4 bills, and walk away with lower monthly expenses? I am just worried that this 4 bills(debt) will hurt my credit scores when I go to apply for loans for property I want to purchase. I always make my payments on time and am never late.
Just need some advice from the peanut gallery 
Thanks!!
Chris G
As opposed to going the create a bill with a bill route, I did something else.
I did one deal and paid off everything except for my student loan.
Transferring the debt doesn't help your credit score. The debt is still there. Your DTI may change but if you max out a credit limit to pay off other debts, that is not a good idea. What's going to happen is that whomever gave you your credit line, will begin to raise your APR higher and higher making it harder and more expensive for you to pay the thing off.
I'm sure you are going to get the Rich Dad Poor Dad way of paying things off and that is an option. But get creative, do a deal and pay them off.
[ Edited by nebulousd on Date 04/08/2004 ]
Thanks neb...
[ Edited by sharpREI_PA on Date 04/08/2004 ]
If I was able to wholesale at least 2 or 3 properties for an avg. of between 3500 -5000, that would make me happy. I just need to go out and look for those deals!!
On avg., how many wholesales can you complete in a given period of time nebulousd? Just curious
Thanks again!!
Chris G
Don't know, I don't wholesale.
"Subject To, That's What I Do."
But that's like asking how much wood could a woodchuck chuck if a woodchuck could chuck wood?
Chris G
There is good debt and bad debt. When you are being looked at for a MTG. It is good to have credit. Most of the time credit history and credit depth are a factor in securing a loan. If you pay everything every month that is GOOD DEBT.
BAD DEBT would be collections, charge offs, constantly being late. It is also bad to owe more than 35% of your credit limit..
Of course if you can do a balance transfer to a low interst rate and keep your other credit card open that is good debt. (open doesn't mean you have to use them)
When buying your first property we usually look at how much major debt you have and how you managed it. That will help to determine the LTV of the loan you can get. (Portfolio Banks)
Lori
[addsig]
listen to "dave ramsey" on the radio its free and he gives the best "money makeover" advice around. it works. he advises taking you smallest bill and consentrate on paying it off as soon as possible even if you have to sale pizza for the "hut" then go to your next smallest bill and do the same. listen to his radio program go to his www. site to find locale listing.......ggod luck.....kenmax