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Is debt consolidation possible???

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I have debt in a lot of places, many lines of credits, multiple credit cards, and multiple loans. It is quite embarrassing to say this and to be neck-deep in loans. Last month I secured a mortgage, but that doesn't help me with the existing debt. I haven't paid enough of the mortgage to obtain a secured line of credit against my house. I am working 24x7 to pay off the interest, borrowing from my parents and friends as well. Yet progress feels like a standstill because the scores are dropping further.
I want to check out to consolidate everything into one payment so that I can save something. But is that possible with my current credit situation? Is there any place else other than financial institutions that I can turn for help? Any thoughts on this?

Edited by MarvBear
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The first thing to do is quit worrying about scores, no matter WHAT flavor of Fair Isaac they might be (and obviously disregard ANYTHING that is NOT a Fair Isaac model). 


The second thing to do is recognize that many of the outfits advertising 'debt consolidation' services should properly be listed as "destroy your credit" services.  They typically want you to default while THEY stockpile your money being sent to them, and at some point in time, they will have a "plan" to try and negotiate a settlement.  What they WON'T generally tell you is that, as a homeowner, you become a target for rapid litigation following a default.  You HAVE something that a lien can be attached to after you get sued and lose (and you WOULD lose since the debt is yours and there is no valid defense for having stopped the payments). 


You have taken an important step in recognizing that you HAVE a debt problem.  It sounds as though you have made lists of who is owed and how much they are owed.  Rather than trying to get a single payment, what you would be better served to do is a modified snowball that begins with taking that list of debts and also add the various APR's for the amounts outstanding.  Those become the primary focus.


Knowing that you may very well lose some of the accounts, call the lenders and ask about an APR reduction.  Some will do it and just freeze the card.  Some will grant the request but close the account. 


Obviously the other thing you need to do is pare your expenses to the bone.  Cable or satellite? Gone...ditched.  That right there frees you up close to a grand a year (or more) with many of the plans that are out there.  Lawn services?  Gone.  Do it yourself.  Any non-essential expense goes by the wayside.  Any incoming check, no matter how small, goes to debt service.  Read the thread CV started about how they burned the mortgage in just a few years...they had a different goal than you have but the principle remains the same- large sum that needs to go away.  


You MIGHT be able to get some assistance with your small local bank with whom you should have a good relationship...it may not clear all of what is outstanding, but they are the ones who might use discretion and offer a small (sub-$20K loan) at single-digit interest rates.  As a condition, they may want to see you close accounts and they may actually make the checks out to those creditors.  Bite the bullet and roll with it...


You want to do whatever you can to save the house and keep everything else current.   

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