I didn't have a job for a couple of months. I tried to call the credit company and explain my situation and they did not care. Now they are killing me with fees. I have a job now but like I said they are killing me with fees and raised the minimum amount I had to pay each month. I would like to know if these companies hurt your credit and can they help me?
2006-12-25 01:52:53 · 4 answers · asked by dynomite_1998 2 in Business & Finance ➔ Credit
Most debt consolidation companies will not be helpful, as they add a fee to the debt you are consolidating. You will not save money, as a rule. Some of these are creatures of the credit card companies and are increasingly found to be engaged in illegal debt collection, even if they are non-profits.
Some credit card companies will reduce the fees and interest, but not all will, and by varying amounts.
Frankly, the only fair way to address credit problems is through c. 13 or c. 7 bankruptcy, in which all interest, fees and charges stop and all creditors are treated the same. Both have become more expensive thanks to the "reforms" that became effective last October.
2006-12-25 02:01:59 · answer #1 · answered by thylawyer 7 · 0⤊ 0⤋
It will only be temporary. And you can recover a lot quicker than if you filed bankruptcy or just ignored them.
I have found it is best not to call creditors to explain anything to them. They simply don't care. Their workers only goal is to get you to send money. Even if it is the last dollar you have. They are going to put what they want on your credit report and all the explaining in the world is not going to stop them.
Consult a Debt Consolidation company
2006-12-25 02:25:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Welcome to the Credit Card trap. It's not a fun place to be.
Companies like 'Consumer Credit Counseling' make payment arrangements with the credit card companies. Using their services appears on your credit report as a chapter 13 bankruptcy for the purposes of getting a mortgage.
I would not use them.
Go to www.daveramsey.com and listen to some of the shows in the archive. He gets callers in your situation every day and has much better advice than I can give you here.
2006-12-25 02:02:45 · answer #3 · answered by KC 4 · 0⤊ 0⤋
Debt Consolidation is a big business nowadays. Just like anything it always has some bad apple in the mix. You just have to get educated. I have two articles in my resource box you might want to check it out. Good luck!
2006-12-26 09:59:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋