I understand they put you on a budget.. do they let you keep cell phone contracts and stuff like that?
2006-10-27 17:37:44 · 8 answers · asked by K.M. 1 in Business & Finance ➔ Credit
By using services from a debt relief organization you will stop receiving phone calls asking you for money. You will pay a fixed rate amount every month which will never go up. You won't be dealing with your creditors any more. The "debt relief people" will be paying your bills for you, and your credit card company is out.
You then pay the debt relief company.
lots more here:
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http://credit-cards.ebookorama.com
good luck!
2006-10-29 15:04:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sure, unlike like bankruptcy where you lose just about everything. With debt consolidating the only thing that change is the method of payment.
Before Debt Consolidation:
If you had 5 bills you would have 5 payments
After Debt Consolidation:
If you had 5 bills they would be combine for 1 single payment, so unlike bankruptcy you are paying for everything you own just in one single payment. Glad I could help!
2006-10-27 19:19:43 · answer #2 · answered by Richguy 1 · 0⤊ 0⤋
I've had clients who have gone to debt consolidation companies to "keep their credit from going bad" - Unfortunately, lenders see a debt consolidation on your credit report and consider it to be very similar to a bankruptcy - where you are paying off your debt with pennies to the dollar. If you are doing this to save your credit, it doesn't work. If you are doing it to reduce your debt and you have no intention of buying anything on credit for several years it isn't a bad idea. They let you keep anything you are willing to pay in full - although different ones have different rules.
2006-10-27 19:12:47 · answer #3 · answered by Dawn J 4 · 0⤊ 0⤋
Consolidating debt is basically getting a loan or line of credit from a financial institution equal to all of your short term debts combined (i.e. credit cards...). The new loan is usually much lower interest, therefor you end up with 1 monthly payment lower than the sum of your other payments.
The terms of that loan are basically that you must cancel all of the credit cards, for at least 6-12 months. They don't take anything from you, and they do not force you into any budget. They may do you the favour of helping you re-organize your spending.
If they are trying to force anything upon you try another institution.
2006-10-27 17:46:13 · answer #4 · answered by Roadrunner 3 · 1⤊ 1⤋
What you are allowed to keep depends on how deep you are in debt, how fast you can repay, etc.
Card 1 you owe 4k and are paying 29%
Card 2 you owe 10k and are current at 11%
Card 3 you owe 7k and are paying 9.8%
They lump it all together to 21k and then figure a % which gives them a profit and lowers you monthly payment. It can be a good program, but be careful it doesn't look you into forever payments. Find out what an early pay penalty is.
2006-10-27 17:41:58 · answer #5 · answered by Anonymous · 1⤊ 0⤋
They take away your cellphone car keys and your PDA until u pay them back.Na just kidding the loan institution puts all your credit card bills together and you pay only one bill a month,so they cancel all credit cards except one.
2006-10-27 20:23:52 · answer #6 · answered by K L 2 · 0⤊ 0⤋
yes....you keep all the material items....its just that you end up with 1 debt that requires a minimum monthly repayment...so it is easier for you to manage....the minimum repayment is generally less than what you are currently paying and based over 5 years....
2006-10-27 17:40:35 · answer #7 · answered by askaway 6 · 0⤊ 0⤋
Do they close all of your credit card accounts?
2015-02-21 11:00:10 · answer #8 · answered by Kimberly 1 · 0⤊ 0⤋