Question : What is a good, reputable debt consolidation company?
I am thinking about doing debt consolidation, but am confused by all the different companies out there. I have heard that there are a lot of shady companies. Does anyone have some helpful advice. My debt is not a huge amount ($6000), but I am tired of paying and paying on them and never seeing a difference on the balances.
- asked by crazyone
All Answers:
Answer #1
Have you tried going to your bank/credit union? Oryou can try Citibank Financial. Its all going todepend on how your credit rates with the loancompanies.
- answered by ltllady08
Answer #2
If you are having to borrow the money to make thepayments each month, you may be over-commited andapproaching bad debt.The UK has several debtmanagement charities who will try to help you workout where you stand and what your best course ofaction is. A commonly used charity in the UK isthe Consumer Credit Counciling Service. There maybe a similar group in your part of the world.TheUS has a similar "not for profit" group calledAmerican Consumer Credit Counselling. You can readmore about them at
http://www.consumercredit.com/about.htm... - othersuch organisations exist.If you can afford thepayments each month and you just need to pay lessinterest, shop around. There are many websitesthat compare interest rates for you.Be careful notto take insurance you don't need. Read any policydocuments carefully to be sure they match yourneeds. Consider getting a quote with and withoutinsurance as this may increase the total amountyou repay significantly, up to 30% in somecases.Hope that helps,froggie
- answered by froggiezebra
Answer #3
Beware of the credit counseling companies, whenthey report on your debt on your credit reportthat is just as bad as if you filed for a BK. Iknow because I have been in the loan business for12 years, those companies are not good to show onyour credit report. Please avoid at all cost.$6000.00 is not a great deal of money, so justmake a payment budget, send it to your creditorsand negotiate a payback plan. You can do thatyourself. Also negotiate how it would appear onyour credit and get all of this in writing onthere letterhead. Also try lexingtonlaw.com forcredit repair, they have helped me, tell them196537 sent you! :)
- answered by xsvideo
Answer #4
I would suggest not going through a debtconsolidation company because there are many badones out there. Plus borrowing money to pay offyour loans to get one payment is like "Borrowingfrom Peter to pay Paul" as my grandparents told meonce. If you do a search on the internet, many ofthe loan consolidation companies are listed on RipOff Reports website.Here is some advice to do thison your own. With only $6,000 in debt, you shouldbe able to do this fairly quick. Others are usingthe same method with over $100,000 in debt. Itworks.First thing of course would be to cut up thecredit cards and make a commitment to never chargeagain. Then follow the following plan.Make a listall your debts by amount you owe from smallest tolargest. Then begin by paying the "most" amountyou can each month to the smallest debt with theidea of paying it off quick. Then, only pay theminimum payment on the larger debts. Continuedoing this every month until you have the smallestone paid off. Everytime you pay off a debt, callthe company and tell them to close the account ...that you paid off the debt and that you do notwant to leave the account open. They will try totalk you into leaving the account open. Don't dothis as it is too convenient and you will betempted and will sink into debt again. You thenstart paying the most you can on the next smallestdebt in line and go on from there until you haveeach paid off. Every time you get any extra money,whether it be $5, $10 or more, apply it againstyour debt even if you have already sent in apayment. You can send in payments more than once amonth. Don't go out to eat. It's "beans and rice,rice and beans" as Dave Ramsey always says whichjust means (cheap meals that you can fix at home).LOL Also do things to make money like garagesales, sell on eBay, get a second job, anything tohelp you get money to apply toward that debt. It'snot about obtaining the best credit score, it'sabout eliminating the debt. You can get more helpon how to accomplish this by reading and listeningto Dave Ramsey. He has a talk show which you canhear on line through his archives, or live online, or by radio by entering your zip code andfind out what time of day his show airs. Plusthere is a lot of reading material on his site toget you started. In addition, he has forums fromhis site to get help and advice from other peoplewho are in debt. Dave has been there (with debt)and knows what it is like and is now helpingpeople to get out of it. There are people thathave followed this method with over $100,000 indebt and have gotten it paid off without goingthrough bankruptcy and without getting some debthelp company to do it for them. Dave's websitelink is below. I would also consider getting hisbook if you can. I gave mine away a few days agoto someone else on Yahoo Answers who is trying todo the same thing. It is worth the money and notthat much, but you can obtain much informationjust by reading his site, going into his forums(there is a free trial offer) and listening to himon air.I hope this information helps you and youget the relief you need. Best of wishes toyou.
http://www.daveramsey.com
- answered by BB
Answer #5
There are reputable companies and there are somesharks. Debt consolidation is a last resort. Thedebt won't go away but it will help smooth out therepayment. Many people use debt consolidation asan excuse to keep spending and two years laterthey are deeper in debt. Please don't do this!Theway to find a reputable company is to do your ownresearch. You could ask your bank whether theywill help. If they won't, ask them if they canrecommend a company.You can find good companiesonline. Have a look at this website because thereare a lot of options there.Good luck!
- answered by Gillian G
Answer #6
hi there! Yes I am posting these links below to people with similar problems and I am getting tonsof best answers, not sure which one of them isdoing the trick though just take your time and gothrough it you are bound to find what helps youout!
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.comif you get any luck please don'tforget about me, hope it helped you.
- answered by terunaz
Answer #7
There are always good, bad and in between. Twoarticles in my resource box might give you someideas about how to choose the right company. Hopefully it helps. Good luck!
- answered by ebizoutlook
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