what is debt consold?

[janinegirly]

what does debt consolidation involve? my FI had an ex from years ago who he consolidated debt for and as a result they continue to have overlapping personal information on credit/background checks. I'm not exactly happy about this although of course it's in the distant past. PS it was an ex GF not wife..
i'm curious if anyone knows what debt consold involves?

 

[KimberlyH]

Typically debt consolidation involves a third party who negotiates between the debtor and debtee to come to an acceptable means of payment over time as the debtor cannot afford to pay the entire amount owed. The debtor pays the company who consolidated the date a certain amount of money each month and the consolidator, in turn, pays the debtees an agreed upon amount, usually a lessor amount than the debtor owes. It is a means by which the debtee still recieves some form of payment and it keeps the debtor from filing bankruptcy.

 

[janinegirly]

thanks kim. i''m still not getting how FI and ex gf''s info became intertwined if it''s through a 3rd party. Guess i''ll have to ask, but don''t like re-hashing the past...

thanks again.

 

[Hudson_Hawk]

Sometimes in order to consollidate debt you take out a loan with the consollidation company, which combines all of your debt (from multiple sources) into one so you're only making one payment each month instead of multiple ones. Your bf may have needed a cosigner on that consollidation loan.

 

[KimberlyH]

Date: 2/22/2007 3:37:06 PM
Author: Hudson_Hawk
Sometimes in order to consollidate debt you take out a loan with the consollidation company, which combines all of your debt (from multiple sources) into one so you''re only making one payment each month instead of multiple ones. Your bf may have needed a cosigner on that consollidation loan.

Ditto, my guess is he cosigned the loan from the debt consolidation company.