2007-02-22 12:19:32 · 5 answers · asked by jamik69xxx 1 in Business & Finance ➔ Credit
I personally have not, but I have heard horror stories. If you decide to use one, make sure you read all the fine print, and that the specifics are listed. For example, after you make a payment to the company, how long will it take them to pay the original creditor? Will your first payment be used for administrative fees? What percent of your payment will go to each of the original creditors? The horror stories I have heard is that the first payment is applied to hidden fees and the original creditor does not get paid until you pay the settlement company the second time. (Which adds another 30 day late payment to your credit score.) I have heard that when the collections are settled, the report shows that the item was settled for less instead of paid in full.
2007-02-22 12:29:13 · answer #1 · answered by Mariposa 7 · 0⤊ 0⤋
If it's your last choice before considering bankruptcy than it isn't a bad thing. They are able to freeze the interest rate and to make the payment plausible for your case. You just pay them the money and they pay the creditors. Be prepared for a long relationship. According to your amount of debt it could take years.
Also it does appear on your credit report. I got involved with a certain consolidation company even when I really didn't need to. I liked the idea that all I had to do was make 1 payment to them a month. They assured me it wouldn't affect my credit, BUT it does and did. So, again, last choice before filing chapter 7 or 13.
2007-02-22 20:27:12 · answer #2 · answered by jaypea40 5 · 0⤊ 0⤋
I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.
2007-02-22 22:44:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Isn't it gr8 to be an American? Shortly after I was married, my wife signed up and roughly five (5) years later, FORTY GRAND was eliminated and her credit was repaired. Much better than bankruptcy and you come off the program with a better understanding of fiscal responsibility. Shop around though. Caveat emptor.
2007-02-22 20:32:39 · answer #4 · answered by WVJaybird 2 · 0⤊ 0⤋
When you are stuck in debt, consider all the available options. You will need to work closely with experts who will provide right guidance to clear off your debts. Credit counseling agency is one such set of experts, equipped to fight debt.
2007-02-23 07:11:46 · answer #5 · answered by hendy h 2 · 0⤊ 0⤋