Is debt consolidation a good idea or am i digging my self in a deeper hole?

March 13th, 2010 | by admin |
tabnunn asked:


I have 6000 dollars in bad debt that are hospital bills. Is debt consolidation a good idea? 150 dollars a month for 6 years is what they told me?????

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  1. 2 Responses to “Is debt consolidation a good idea or am i digging my self in a deeper hole?”

  2. By sar on Mar 16, 2010 | Reply

    no , if its hospital bills, apply for medicaid they will pay it in full

  3. By Rate Hound on Mar 16, 2010 | Reply

    I’m guessing you are using a debt consolidation service based on the numbers you provided. And, yes, it looks like you are digging yourself a bigger hole. Just go to your bank and tell them your intentions (get out of debt) and can they help you with debt consolidation or refinancing of your existing debt.

    Debt consolidation, in the generic sense, simply means taking out a single loan and paying off all the others with this loan. You don’t need to pay a service to do this.

    The service you are using is asking you to exchange your current credit card debt that I’m guessing you are paying somewhere between 12% to 18% interest for a new loan that you will pay 22% on for six years. Doesn’t sound like a good deal to me.

    You bank may be willing to extend out your loans, thus reducing your monthly payments or maybe even lower your interest rate to help you with cash flow.

    If your bank isn’t willing to work with you, there may be others that will.

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