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To all the people who work for debt consolidation companies For all of you in the debt consolidation field or have connections with someone who is. I have a question regarding a businesses credibility. I did a BBB search and didn't get any returns.
Or for that matter.... can U refer me to a consolidation company that is on the up and up, the specific company I'm referring to is this one right here [Edited 4/9/10 8:02am] | |
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Legitimate credit counseling firms are affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. a psychotic is someone who just figured out what's going on | |
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Debt consolidation is a BAD IDEA. If you're meaning to lump all your credit card loans, etc., into one big loan, PLEASE DON'T DO IT.
You're more likely to incur outrageous fees on the new loan, and then end up charging the paid-off credit cards up again and then you're worse off. Instead, do this: 1. Cut up all your credit cards. ALL of them. 2. Get a debit card and use only it. 3. Start with the smallest credit card balance, and pay it off first 4. Then take the money saved from not having to pay on that card, and apply it to the next-smallest balance 5. Pay IT off, and then work your way up the ladder until all cards are paid off If you just keep making minimum monthly payments, you'll be in debt for decades. For more information, visit www.daveramsey.com DO NOT USE DEBT CONSOLIDATION COMPANIES BECAUSE THEY WILL RIP YOU OFF. | |
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RodeoSchro said: Debt consolidation is a BAD IDEA. If you're meaning to lump all your credit card loans, etc., into one big loan, PLEASE DON'T DO IT.
You're more likely to incur outrageous fees on the new loan, and then end up charging the paid-off credit cards up again and then you're worse off. Instead, do this: 1. Cut up all your credit cards. ALL of them. 2. Get a debit card and use only it. 3. Start with the smallest credit card balance, and pay it off first 4. Then take the money saved from not having to pay on that card, and apply it to the next-smallest balance 5. Pay IT off, and then work your way up the ladder until all cards are paid off If you just keep making minimum monthly payments, you'll be in debt for decades. For more information, visit www.daveramsey.com DO NOT USE DEBT CONSOLIDATION COMPANIES BECAUSE THEY WILL RIP YOU OFF. I am aware of this information, Rodeo, and appreciate the info you provided, HOWEVER, what's also true is yo don't know all of my information and where it resides... | |
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When I worked in credit (which was admittedly YEARS ago) we referred people to Consumer Credit Counseling, which was a reputable non-profit. What they did then was basically arrange a chapter 13 bankruptcy for you but without all the legal fees associated. They would freeze the balances on all of your lines of credit, stop late fees and interest from accruing and arrange for you to make one payment to them which they dispersed to all of your creditors, making agreements with the creditors to accept less than they usually would on a monthly basis.
It's helpful to get you out of debt if you're in WAY over your head, but it also totally ruins your credit for the next 7-13 years. So it's really a last resort. Now, with changes in laws since then, I don't know how this might work today or if agencies like this still exist. It's been a long time... |
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