I don't have enough credit to borrow for a debt consolidation loan. What can I do to get the most out of my monthly payments?
By your question I take it to mean that you do not have good enough credit to qualify for a consolidation loan. Is that correct? If so, then you have some options.
1) You can double up your payments so more principle gets paid down each month. If you cannot afford to do this with all of the creditors at once, trying doing this with the account carrying the highest interest rate. Once that is paid off, you can then double up on payments on the account with the next highest rate and so forth. You will find this to be an effective way to pay down your debts.
2) If you cannot afford to make any double payments you can consider bankruptcy. This can be expensive and with new restrictions it may not lead to a lower payment. It is very difficult to get the debts discharged now with the new laws. You would want to consult with a bankruptcy attorney to get the specifics on your case. Remember that a bankruptcy can damage your credit for 10 years. This is a very serious step to take.
3) You can consider going to a credit counseling service. They may be able to lower your payments but you will be required to pay the entire amount back. You can read more about credit counseling at http://www.bills.com/credit-counseling/.
4) The last option is to consider debt settlement or negotiation. You can contact the creditors and offer to make a lump sum payment for less than the balance. Many people find this a daunting challenge and prefer to use a service. If you hire someone, make sure that they are not over promising you on results. They cannot guarantee a particular amount that the creditor will accept until the negotiation process is completed. They cannot promise anything before then because there are too many variables. If you get a firm stating that they promise they can reduce the debt to such and such amount, I would strongly suggest choosing another settlement company. Bill is friends with the good folk at Freedom Debt Relief, we have done a review of them and have found them to be the best in the industry. You can read more at http://www.bills.com/freedomdebtrelief. Freedom Debt Relief will give you a free consultation if you call 1-800-544-7211 or visit www.freedomdebtrelief.com.
Bills.com offers a tremendous amount of information to help you further explore any of these options. Read more at http://www.bills.com/debt-consolidation/.