Are debt consolidation companies really helpful?

Answer 1

There are good and bad.

There are also differeny types.

Consolidation = negotiates intrest rates
Settlement = negotiates balances

You should only enroll with a debt management company if you really need it.

Here is a great article that gives you the pros and cons of consolidation as well as P&C's of other options to eliminate debt or avoid bankruptcy......



http://www.expert-credit-advice.com/options_to_eliminate_debt.htm








Also, check out the Better Business Bureau here: http://bbb.com/ before considering any company......

Answer 2

Honestly, not really. When I was younger, I really messed up my credit like most of the world. Back then, I had no clue about how to manage my credit. I went to a credit consolidation company, and looking back, it wasn't worth it. They made me pay $200 program fee, which I could have used to pay off some bills. Then they simply added up all my debt, and made me pay a little more monthly. You are better learning it for yourself, because this is a subject you need for the real world. Write down all of your debts, not monthly payments, but total. Cancel things you don't need, and budget for a set amount of time, like 6 months. Then pay as much possible toward your debt.

I paid my 5 year car loan in 2 years, and I am glad.


p.s. For a cheap resource go to the library and check out money mangement books. Good luck.

Answer 3

i think like any industry, there are good ones and bad ones. you have to do the research on them... www.bbb.org (better business bureau), www.ripoffreport.com (reports from others), and interview referrals/references.

if you find a good debt consolidation company, it can really be a life saver for some. but, a lot of times they perform a duty you could do yourself. can you first consolidate debts with a single loan? (personal or mortgage, if you own a home). can you control your future spending habits so as not to get back into debt or bury yourself deeper. can you negotiate payment plans with your creditors if you can't afford the full monthly amount? try these first.

Answer 4

No, they just prey on your desperation by extending you more credit - the last thing you need! Better to go with a reputable credit counselor like CCCS or follow the tips on Dave Ramsey's website.

Answer 5

yes if your $20,000 or more in debt

Answer 6

yes and no