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Debt Consolidation or Assistance

Discussion in 'The Pub' started by evader, Jun 19, 2009.

  1. Hi,

    Can any netriders recommend any services that are good at helping people get out of debt, deal with creditors or offer debt consolidation loans?

    I have a couple of assets that are encumbered (vehicles) that I need to sell as soon as possible - A car with market value of about $15,000 and bike with market value of $5k or so. Obviously I won't/can't sell them until I can pay out the loans. I have a few other debts I'd really like to sort out but I'm terrible at organising this sort of thing.

    A quick Google turned up a few services, but it's too hard to tell who's dodgy or just a waste of my time and money!




  2. Would you like the number for Chopper Read? :LOL:
  3. Nah... nothing like that :)

    Just had a bad run at the start of this year when I lost my job - loans piled up and it's now quite the mess. I'm off my bike restrictions soon and really want to get rid of my car (Ford XR4) + current bike (Ninja 250R) so I can save to buy a Daytona 675 in time for unrestricted license day! I never drive the car anymore now that I've got a bike...

    I've heard of some places that can sort out debt consolidation loans, so I can sell these assets and just pay one loan etc. It'd be good to tack on my collection of parking/speeding fines to the loan too!
  4. Google them and check them out fairly carefully before using them - there's that fairly well known one that advertises a lot, but they've been charged with not fully disclosing fees and various other offenses. I think there are services that can get it done, but you might be just as well off to talk a consolidation loan directly with a bank to avoid paying large fees.
  5. Check with you bank or a CU to see if they will give you an unsecured loan to payout the current ones.
    That will then lift the encumberance and bring the loans into 1 loan.
  6. +1 Geeth, this will probably be cheaper than Debt Consolidation also, I hear they charge like a wounded bull.
  7. are u working now?
  8. If you have enough equity in a house (even one that's under finance) then it's normally possible to consolidate all your other loans into a redone house loan (as long as that won't exceed the maximum % allowed to borrow against your house).

    That's normally the cheapest way as the house % rate is way lower than everything else so you reduce your payments compared to the single personal loan option.
  9. +2 for Geeth. Probably your best option If your currently working, a unsecured personal debt consolidation loan from your bank would be the best option. It should remove the encumbrance on the vehicles and allow them to be sold.
  10. the vehicles can be sold but your buyer should be informed to make the cheque out to the bank for whatever balance covers the loan, and then the remnants to you. Your bank can tell you more. Speak to your financial person at your banks branch. Of course if your equity on said items is less than the current loan... well you may be in trouble.
  11. I agree with those who advise to seek out with a well known bank or Credit Union. Don't, whatever you do, go into "Loan Shark" territory!!

    Most of the larger banks & CU's are well placed to offer good advice and may provide you with a number of options on how to consolidate, depending on your desired outcome.

    Good luck!! :)
  12. Call up the companies you have debt with and see if you can go on Financial Hardship - I did this before with some credit cards (Bloody Missus)and it dropped payments for example with one card from $500 a month to $100 with virtually no interest and I was on it for about 12months. Also see if you can get a debt settlement, I did this with said Credit Card and paid $5000 short of the total amount owing because they just wanted it paid off.

    I dont think this will work with anything that has collateral because they can get their money that way, but with things like Credit Cards they have nothing but hope that you are going to pay and not claim bankruptcy.
  13. +1
    went through this recently and basically wiped six figures of credit card debt, yeh yeh I know. htf do you end up with cc debt that high.
    also helped out daughter and son buy a house which gets my daughter off the rent cycle.