2006-07-14 08:48:57 · 13 answers · asked by benny113081 1 in Business & Finance ➔ Personal Finance
Some are. Some aren't. Check the reputation of the company and their track record-how many times have they changed hands or been sold-how many complaints have they received from the BBB-do they make payments on time to creditors-do they have a good reputation in the community-do they charge a lot upfront, or is it reasonable? Find one close to where you live and not in another state, so if there are problems, they are easier to follow up on.
2006-07-14 08:53:10 · answer #1 · answered by curiositycat 6 · 0⤊ 0⤋
Getting a consolidation loan doesn't require a special company. You can go down to your local band and get a consolidation loan.
What you need to be aware of is that consolidation loans are not reducing your debt. They are just spreading it out more so it will take you longer to pay it off. If you are trying to reduce montly payments and just can't scrape together enough to make the current monthly payments, then it might help you. I'd strongly advise trying to find another way and just work on paying you debt down.
Make a list of all of your debts and the percentage rates associated with each loan. Put these in order not by the balances you own or by the monthly amount....but by the percentage rate. Highest rate goes first. Put any extra money that you might have towards paying down the highest interest loan first. Then, when it is completely paid off, move on to the 2nd highest rate.
Good luck.
2006-07-14 08:57:01 · answer #2 · answered by BAM 7 · 0⤊ 0⤋
Hi
In my opinion Credit Card consolidation companies are a rip off because what they do you can do yourself with some effort on your part.
If you have stopped paying on the cards then refuse to talk to them and regardless of what they threaten, at some point they will negotiate for a far lower balance then what you owe.
The consolidation companies do the same thing, they just negotiate on your behalf for that large fee ofcourse
2006-07-14 08:57:04 · answer #3 · answered by Ralph H 2 · 0⤊ 0⤋
If you do not check a company before entering into a transaction, you could lose your money, time and credibility. Some widely used resources are the Better Business Bureau (www.bbb.org) and the national fraud center ( www.fraud.org) These days, you can easily find out more about a company using the internet in a few minutes. From a company's website, you can details about its ownership, how old the company really is and feedback from the company's customers.
You can find more detailed information about a company at http://tinyurl.com/gtb89
2006-07-14 20:56:35 · answer #4 · answered by comptermind 3 · 0⤊ 0⤋
There are only a few that are legitimate. And as far as the BBB goes, companies pay to belong to the BBB. They can say pretty much anything they want to about themselves and if they don't belong, whatever is said can be easily discredited considering. Watch Suze Orman. She gives the best advice on how to consolidate without having to use those criminal oppurtunistic sh*it-bag companies.
2006-07-14 09:02:29 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Most aren't but they are not necessarily a solution unless you have enough self control to get rid of your cards once you consolidate. They are lending companies who'll loan you enough to pay off your credit card debt at a lower rate but you'll still owe the money.
2006-07-14 08:55:12 · answer #6 · answered by williegod 6 · 0⤊ 0⤋
I currently work for a consolidation company and we make sure we reassure all of our clients that we're registered with the Better Business Bureau. It's never a bad idea to ask them once you get them on the phone though just to reassure yourself...and do a little research on the company first.
2006-07-14 08:54:16 · answer #7 · answered by baby gyrl 2 · 0⤊ 0⤋
In a manor of speaking... you can negotiate the same terms and lower APR's that CCC companies can. It's hard to find one these day's that will assist you without a fee. Thing is if you use a CCC to pay off your debt this actually looks bad to the 3 credit report agencies instead of you doing it yourself. So be carefull before you decide to use a CCC because it actually works against you even if your trying to do a good thing like get out of debt.. it is still reported.
2006-07-14 08:56:09 · answer #8 · answered by kitkool 5 · 0⤊ 0⤋
most are, so you need to check with the BBB. Also look for one in your area instead of online, that way if there is a problem they are local and you can go to there office and talk with them. I did it a few years ago with company I found online, and nearly got screwed in the process.
Think of it as going to your bank, once they know you, they'll treat you you like a human and not a number.
2006-07-14 08:58:21 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You are better off to go to your bank and get a consolidation loan.
2006-07-14 08:53:16 · answer #10 · answered by Anonymous · 0⤊ 0⤋