Credit Debt Management

30 Jul, 2010

Debt cosolidation?

Posted by: admin In: Debt Cosolidation

Question by lisa: Debt cosolidation?
Is debt consolidation a scam? It’s hard for me to pay off alot of my credit card bills, Im a recent college grad not making alot of money and I had put alot of tuition on my cards. They have huge interest rates. So I called a debt consolidation agency, saying they would knock off interest rates and I would only have to pay 55% of what I owe. I set up a payment plan with them which sounds great. But then a few people said they could lie to me and it could be bad for my credit. Anyone have any experience with this?

Best answer:

Answer by mccray_51
Unfortunately, your friends are right. What these companies failed to tell you is that whenever you try and buy a home banks will consider this consolidation as bankruptcy. Your credit will be treated as such when considering your interest rate. I have been told many a time by bank underwriter’s that a file was turned down or did not qualify for a better rate due to one of these debt consolidation programs. As far as their investor guidelines are concerned you have filed bankruptcy. You also need to research the company and make sure there are no complaints against them. I also have noticed that these companies have a tendency to pay items late..and the borrower would have done better to negotiate the payment plan with the creditor themselves. Good luck to you

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3 Responses to "Debt cosolidation?"

1 | zwl88796

July 30th, 2010 at 10:09 am

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it sounds more like a debt negotiation service. Lets say you owe 6000 to a visa card and then this company would negotiate with that creditior and they bring the balance you would owe to 2500.00 then you pay this amount, it ruins your credit, you should call the company and see if its a debt consolidation or a settlement/negotiation company.

2 | lavina c

July 30th, 2010 at 11:02 am

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If a person has accumulated a large amount of credit card debt due to multiple credit cards, the need for a proper counseling for credit card debt consolidation can’t be understated. Credit card debt consolidation counseling helps a person get vital insights into the facts that can help him get control over the credit card debt.

Credit card debt consolidation counselors are experts with a good knowledge of debt management, budgeting and behavioral patterns of credit card holders. These services are vital for those struggling to manage their credit card debts. Also called credit counseling or debt counseling the credit card debt consolidation counseling brings immediate relief to a credit card holder.

A person seeking credit counseling can get it from two types of organizations. The professional or commercial organizations, and the non-profit organizations. As depicted by its name or categorization, the commercial organizations charge money for their credit counseling sessions and consolidation help on the other hand the non-profit organizations offer free of charge services. Just because the non-profit organizations are free, it doesn’t undermine their quality of service. The persons associated with such organizations are thorough experts and have lived the trauma of being under credit card debt themselves and hence bring their vital experience to the credit card holder.
Read more from: http://www.credit-card-gallery.com/article/353,Credit_card_debt_consolidation_and_credit_counseling_great_tools_to_get_rid_of_credit_card_debt

3 | Lisa.

July 30th, 2010 at 11:35 am

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yes dont do it! the best way is to call a company called cls (community legal services direct) they are free and will advise or even represent you in matters like these. i used them loads of times they are brilliant. And are all legally trained.

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  • tim t: go for a reputed one The advantage of a debt consolidation repayment plan is that it prevents your creditors from harassing you as long as you go on
  • bdancer222: Most of the debt repair/consolation/settlement companies want their fees up front and leave you credit trashed. Check nfcc.org for listings legit non
  • Deal & Dime D: Call BBB in your state they have reports on everyone for you to review. Good luck and take your time to choose because some debt consolidation compani

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