Should I drain my savings to pay off debt or accept a debt consolidation loan and keep my savings?

olivia

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Should I drain my savings to pay off debt or accept a debt consolidation loan and keep my savings?
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MoTeC R

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Should I drain my savings to pay off debt or accept a debt consolidation loan and keep my savings?
As long as you have fall back resources I’d pay off the debt. I’ve lived debt free for many years. Now does that mean I don’t use my credit sources for transactions sometime, no. But I make sure I have the means to pay off the prior month or use 0% options for things like furniture etc. as long as your accounts aren’t charging you interest you aren’t wasting money. My 2 cents.
 

MoTeC R

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too many factors and variables come into play,

- your income
- your assets
- your monthly bills
- own a house or rent
- children/dependents
- how much debt
- what type of debt

etc etc
Exactly why I said depends on their “resources” blanketing the many factors of consideration. It will help your credit score substantially paying off debt. However if your credit is not in good shape and you come into an emergency can you handle a situation which may unexpectedly occur if you drain your savings is the main question.
 

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I would recommend to apply to some professional consultation. I received excellent service from Dept Quest USA and their debt consolidation program. It was their professional knowledge and genuine attitude that help me to trust in knowing there is know noncent with this class A+ rating Debt Settlement Company. They get the job done.
Be cautious of these programs you pay a small monthly fee and they deposit into an account. Then they call to settle debts for less amounts. If they settle a $4000 hospital stay for example for $2000, They will take the 2000 to pay them and then 25% of what they saved you so it’s $500 withdrawn for your account for them “negotiating your debt”.

I had a friend who had money in the account and they weren’t doing anything with the existing accounts and it continued to hurt their credit. So I took the day calling all their creditors for them settled them all for very little and they write the rest of the debt off and no fees from a 3rd party. They can’t do anything more than you can do on your own. They refunded her the money in her deposit account and their fees were gone and accounts were settled by me personally. It’s not hard to do this, however some creditors may or can flat out defuse to settle. Most will however because something is better than nothing.

If you have good credit letting the bills go delinquent they still count late against you as long as they take to decide as a debt consolidation company to wait on. I’d be happy to help you for much less than 25% Of what I could Save you in these programs. ?

In the end it’s your decision, did you decide what you were doing?
 

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Depends on the type of debt. If paying it off saves money on interest focus on those. If it's the same amount regardless of paying it off early then it's just going to be convenience/piece of mind.

I would be careful with debt consolidation companies in general. Remember, they aren't doing it out of the goodness of their hearts, they do it for profit.
 

Miki

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Interest related debt: pay it off as quickly as possible without jeopardizing your ability to pay other upcoming expenses.

No-interest debt: Pay this off before the promotion ends, but no need to rush on it in the meantime. Use the extra money towards other things.
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