are those get out of dept companies on the level?

Answer 1

Most of the companies that advertise on TV that consolidate your debt into one payment per month..are genuine..and really do help you. Contrary to popular belief, they don't offer loans..they simply take your current debts, call up the companies that you owe money to and haggle over the interest rate on your behalf. Most credit card companies are willing to lower interest rates considerably if they think they are going to actually be paid..even if it means costing them a few dollars in the long run. Of course, what you have to realize is that these companies cannot do anything about loans that were given over a specific term..like car payments, mortgages and some personal loans. Sometimes even credit card companies will not take part in the program. Generally speaking, the larger the company is that you have an account with, the more likely they are to participate. They figure they are better off getting back the money you borrowed without interest, or at a low rate, than fighting you over years for a much smaller amount.

The debt company will charge you a small monthly fee...which ranges anywhere from $3-$20 for their service..this mostly covers their costs. You are required to make a one time monthly payment for the bills which is deducted from your checking account, and you also have to sign an agreement that says that you will not attempt to obtain anything else using credit while you have a pay-off agreement with them. The accounts you have that you are paying off are immediately closed when you have paid them off. However, because you are doing this through a consolidation company and paying the debt off yourself..the account is listed on your credit report as being closed as per request of the consumer, you, as oppose to them closing it because of non-payment. This is a REALLY good thing.

These companies in general will not negotiate payments that are already late for you..you have to deal with that yourself. For future payment questions though you can direct the companies to call the debt consolidation company..they will deal with that for you. This means..no more harrassing phone calls !

The best thing about this is that you can reduce your monthly payments on credit cards and other debts considerably. It can save you hundreds of dollars a month, and you won't end up with any black marks on your credit for having taken this route out...they may list the credit consolidation company on your credit report while you are dealing with them, and for a while afterwards. This is to ensure that you don't break your agreement with them.

So, in general I would say yes, these debt consolidation companies provide a good service to those in need. Just be sure that you do use a genuine consolidation company..don't give out your personal information to a company that you called from an online im, or an answer you got here in yahoo answers to a question you asked !!!

Good luck.

Answer 2

Most are just out to make a buck -- your buck. I suppose there are some good ones but check with Consumer Credit Counseling first.