How bad would it be if I use one of these debt consolidators?
My uncle will let me borrow 45K w/ no interest just pay him what I pay every month to credit cards (which is 500.00 per mo.) Or I could try n chop down my debt w/ debt consolidators and pay off the remaining debt and invest the rest of my uncles money. My debt will be zero but how bad did I effect my FICA score?
January 21st, 2010 at 5:29 am
Without question, the best choice is to take the money from your uncle and pay off all of your debts. The debt consolidators will charge interest while your uncle is giving you an interest free loan.
I understand the idea of investing the money, but without knowing more about you and your investment skills I’d have to assume that the debt consolidators will charge a higher interest rate than the rate of return on your investment.
Good luck!
January 21st, 2010 at 6:41 am
I would not borrow that amount from family. In my experience money and family don’t mix. Also, you run the risk of putting money back on those cards and getting into the same position but now you have a payment to your uncle to. I used a company called Debt Counseling Corporation–I had 23000 in debt and was done much sooner then i would have off–they lowered interest and paymnets. I learned how to budget myself and they provided me with those tools. You should explore all options so check them out
http://www.debtcounselingcorp.org