I am looking into consolidating my credit cards and want to know if anyone has used a debt consolidation company and if so, who did you use and how did it work for you? I am looking for a company that will pay off what i still owe and then I make payments to them for what they have paid off. Thanks for any help!
We read a Dave Ramsey book (although we had already filed bankruptcy) and just started from there with it. It has helped us wonders and we are not struggling anymore! It feels so great to have money to do whatever we want to do and not have to pay it to credit cards and $700 dollar truck payments.
My husband used to work for Credit Solutions as a debt consultant. He truly believed that the program they used worked, but said that everything they did, and person could do for themselves. Call your credit card companies and ask them to lower your interest rate. The worst they can do is say no, and it never hurts to ask. That will help in the short term.
Most companies are going to make you pay them first before you start paying on what you owe. You can check out Credit Solutions on the web.
We got a consolidation loan through our bank, well one of our banks :o). I prefer USAA, but we used Navy Federal for this. So it's not a loan that looks bad on our credit at all. It lowerd our monthly payment over $200 and we will be paid off no later than 5 years.
Careonecredit.com. Saved my life, and thousands of dollars, and DIDN'T wreck my credit.
Bad idea. This will wreck your credit.
Get a Dave Ramsay book and easily do it yourself!
When I've looked into this in the past, they won't do it until you default on all the payments - which, as the other person posted, ruins your credit. Talk to the companies yourself and see what you can work out.
Most consolidation companies are not licensed, do not do what they say, and overall just take your money with little results. Each credit card company has the OPTION to work with the consolidation company and many say no, which leaves you no better off (but the consolidation co still gets your money).
There are a few companies out there that are decent, but they are harder to find - they are NOT the ones on the internet or on TV. I would check with your county and find out if there is a local agency that they can recommend. Often it will be a place that also offers things other than credit counseling like marriage counseling, mediation, etc., as well. Also, large church organizations will offer debt counseling/consolidation as well. Lutheran Social Services is one, and I have heard that Catholic Charities is offering something, but I am not sure.
I have worked in the bankrutpcy field for over 10 years and I understand how debt works (and doesn't work) and am very familiar with how consolidation places work (and don't work). Just remember, if it sounds too good to be true, it is.
Good luck!
Go to a Dave Ramsey class or get his book. He will teach you how to do it yourself.
A Debt consol co will not pay off your debt & let you make payments to them. They are not in the business to take on risky clients, people that go to them are in trouble financially. They negotiate your balances & your interest rates & your monthly payments. So the monthly payment you make to them is partly for your creditors & the rest is for them. Be careful going to these places most of them have a bad history of not doing what they promise & don't stay open for very long.
