Ask Terry Questions Debt Consolidation Help!

Debt Consolidation Help!

By Terry Savage on February 24, 2020 | Credit/Debt

Terry,
would you please list a few reputable companies that handle debt consolidation or debt restructuring programs.
I currently have $40k in personal student loan debt, $15k in credit card debt and $10k in personal loan through lending club.

thank you in advance,

Terry Says

OK, this is a tough question, but you’re not alone. And most of the “consolidation” programs require you to stop paying on your loans, accumulate some money with which they can negotiate a lower payoff, and get their fee. But that won’t work with you because you have so many different kinds of loans.
And each must be treated differently. And a lot depends on whether you are earning ANY money right now,and how you are living.

The one group that I can send you to with complete confidence is the National Foundation for Credit Counseling. If you call their toll-free number 800-388-2227, you will be automatically connected to your nearest local agency. They are free or very low cost. Make an appointment to meet with them. Bring in a list of all your debts and your most recent statements, so they can see the terms of each. They are trained to help you prioritize — and if worst comes to worst, they will deal with your credit card lenders to get your payments reduced. And they can help you get a deferment for student loans.

But don’t hesitate. You’ll never get out of debt by taking on MORE debt. And it strikes me that’s been your approach so far. One more thing: I know nothing about your personal circumstances, but the easiest way out is to EARN MORE! So what are you doing evenings or weekends? It may not be in your career path — but anything from babysitting or care-giving or walking dogs or driving an Uber — anything that brings in extra money for the next few years could be the way to get ahead of this debt snowball.

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