Who should I go through for credit consolidation?

Question

My husband and I are in serious debt. It has all been turned in against our credit, but I would really like to get it taken care of. From experience, can anyone tell me a good company to help me with this?

Answer 1

THERE is no such thing as a good consolidator. What they do is charge you for doing what you can do yourself.

Being in debt sucks if it hurts you. 95% of those who go to
counselors do not stop the buying and spending habits they have. That is what is hurting you.

so,....stop buying anything but food--the least you can live on
and no gifts or fun for 90 days
nothing but bare living expenses.
no movies, no candy no beer, nothing.

do that for 90 days and put that money you would have spent
on the credit cards

my suggestion here is simple--

on the ones that you have paid normally, keep it up.
on the ones you have skipped, start paying minimum payments PLUS 10% of what you did owe.

get a 2nd job for 6 mo to one year.

put 100% of that cash into the old bills.

if you have junk at home that you don't use, sell it.

if you have 2 cars, take the bus and get rid of a car

pay off old debts

and if you are very focused, I can show you how to
have your federal tax $ each month to help pay those
over due bills............but you have to be very disciplined
to use the $ that the feds get from your check monthly!
get back to me for any more help.

[also, see if a relative will help you buy a condo or house
from a foreclosure sale so you can begin building equity]

Answer 2

I'm with most of the people here - you're not going to find any good debt consolidation companies. My suggestion would be to get a budget mapped out. List every bill and expense you have for the month and your take home pay. Is there anything left over? What are you buying that you can do w/o for awhile?

From there pay the minimum payments on all your bills except for the lowest balance. Pay what you can afford on this one. When that bill is paid off add that payment into the second lowest and keep working at paying those off one-by-one.

If you get in a position where you have some extra cash (tax refund, etc), call one (or more) of these creditors and see if they'd be willing to accept a settlement to have the debt considered paid in full.

Answer 3

If you don't have to go through the credit counseling, don't. You can use a lot of the items listed by others here as there are some great resources on line, books, and radio/tv.

However, some of the credit card companies will NOT work with you to lower your rates or work out payment plans. Then again, some of the credit card companies won't work with credit counseling groups, either.

It depends partially on how seriously in debt you are and for how long as to how easy it will be to do it on your own.

If the companies that you go to for help do charge, they will not charge huge fees and if you find one that does, don't use them. There are other options.

Definitely make a real budget...not just one that has a few of the major items...but everything like gas, food (groceries AND eating out), haircuts, doctors, oil changes, newspapers, entertainment, clothing, car registration, taxes...EVERYTHING. Most people find that when they do write everything down and then compare it to their monthly income, they're overspending...so do the budget, find what you can cut...and then actually use it.

Also, if you do decide to do it on your own or with an outside counseling service, do try to pay a little extra, and if that means riding the bus, biking, eating out less, one less movie rental, or getting a second job, do it. If you do the math, even a little bit extra will help bring it down so instead of paying for 12 years you'll pay for 3 (exaggeration to some, but again, paying above the minimum will help greatly).

Answer 4

Consumer Credit Counseling is an option but most will charge you to do what you could do on your own,(not much because most are nonprofit) they can ruin your credit by missing payments. Also the C's (Consumer Credit Counseling) always shows up on your credit, it is required. Most other lenders will not give you any new credit. This is part of the agreement to help you.

So here is what I would suggest.
1) Stop using Credit Cards or other credit.

2) Write down and list all your debts (be complete) Write down the rate of each

3) Then make your payments on time.

4) Pay a little extra on your highest rate loan or Credit Card, or your smallest credit. You may have to cut back your daily pop or bring your coffee, or lunch from home. Pay that little extra until that is paid off. Then take that whole payment extra and all and pay it on the next loan. and Continue the process until all credit cards and loans are paid off and closed. It is the same thing Consumer Credit Counseling will do. It's called a roll up method. Rolling each payment in to the next until paid off.

5) Make a budget you can live on what you make and stick to it.

This does take discipline, but that little work and effort will not only save your credit but make it better, and save you money in the long run.

Answer 5

The best solution is to go with a debt settlement company. They will negotiate with your creditors on your behalf and bring down your principal debt amount by around 30% to 70% depending on your credit companies.

Whereas a Debt Consolidation will not reduce your principal debt amount. All you can dois to make minimum monthly payments.

You can make affordable monthly payments in a debt settlement too. In order to join a consolidation, they will ask for assets as a security which does not happen with a debt settlement company.

There will be no hidden costs,penalties and upfront costs associated with the monthly payments in a debt settlement company. They will start working on your debt amount from your first payment itself.

Check this company who helped me out with the unsecured debt situation

http://www.debtfreeafterall.com

Good Luck

Answer 6

The wife and I are in the same spot. We started out with one of those companies and all we were doing was paying for something we could do ourselves. I found daveramsey.com and started listening to his radio show from the website. He keeps a 10 day archived list or you can find a radio station near you. Lots of good advice about money and debt.