I need to know a company that will help me consolidate my debts. I need to fix my credit and start over.?

Question

I have BAD credit. And now I am at a point in my life where I want to get on track and have decent credit. I want to be able to get a home and car in the near future and I need to get started. Does anybody know of a company that will sum up my debts and let me make payments to them to get back right?

Answer 1

check out dave ramsey's total money makeover.
The Truth About Debt Consolidation

Myth: Debt consolidation saves interest, and you have one smaller payment.
Truth: Debt consolidation is dangerous because you treat only the symptom.

Debt consolidation is nothing more than a "con" because you think you've done something about the debt problem. The debt is still there, as are the habits that caused it - you just moved it! You can't borrow your way out of debt. You can't get out of a hole by digging out the bottom. True debt help is not quick or easy.
Larry Burkett, noted financial author, says debt is not the problem; it is the symptom. I feel debt is the symptom of overspending and undersaving. Our certified counselors will not recommend debt consolidation for a client. Why? Because debt consolidation doesn't work.

Debt Consolidation Statistics
A friend of mine works for a debt consolidation firm whose internal statistics estimate that 78% of the time, after someone consolidates his credit card debt, the debt grows back. Why? He still doesn't have a game plan to either pay cash or not buy at all. He also hasn't saved for "unexpected events" which will also become debt.

Debt consolidation seems appealing because there is a lower interest rate on some of the debt and a lower payment. However, in almost every case we review, we find that the lower payment exists not because the rate is actually lower but because the term is extended. If you stay in debt longer, you get a lower payment, BUT if you stay in debt longer, you pay the lender more, which is why they are in the debt consolidation business.

Debt Consolidation Example
For example, let's say you have $30,000 in unsecured debt, including a 2-year loan for $10,000 at 12%, and a 4-year loan for $20,000 at 10%. Your monthly payment on the $10,000 loan is $517 and $583 on the $20,000 loan, for a total payment of $1,100 per month. The debt consolidation company tells you they have been able to lower your payment to $640 per month and your interest rate to 9% by negotiating with your creditors and rolling the loans together into one. Sounds great, doesn't it? Who wouldn't want to pay $460 less per month in payments?

But they don't tell you that it will now take you 6 years to pay off the loan. This may not sound that bad to you at first unless you realize how much more you will actually pay in additional payments. You will now pay $46,080 to pay off the new loan vs. $40,392 for the original loans, even with the lower interest rate of 9%. This means you paid $5,688 more for the "lower payment". Not such a good deal after all. This example shows you why they are in the business - because they make money off of you.

The Real Way to Get Out of Debt
The answer is not the interest rate; the answer is a Total Money Makeover. The way you get out of debt is by changing your habits. You need to commit to getting on a written game plan and sticking to it. Get an extra job and start paying off the debt. Live on less than you make. It is not rocket science, but it is emotional, which is why most people need help getting through it from someone like Dave Ramsey. Don't try debt consolidation!


best thing is to eliminate spending and using credit.
look at the baby steps.

Get "current with debts"

$1,000 to start an Emergency Fund
Pay off all debt using the Debt Snowball
3 to 6 months of expenses in savings
Invest 15% of household income into Roth IRAs and pre-tax retirement
College funding for children
Pay off home early
Build wealth and give!
Invest in mutual funds and real estate


Don't pay some jackazz to help you "consolidate" debt. Statistics have shown "debt consolidation" leads to deeper debt.

I'm 49 years old and have been playing the credit card shuffle for a long time. I am midway through my debt snowball. I refuse to ever use credit again after having been a credit junkie for 30 years.
We've paid off nearly 50,000 in the last three years. I still have about 20000 in unsecured credit to pay off then on to the mortgage.

Check out FPU (financial peace university), and daveramsey.com I borrowed the DVD's from our church and bought the book on Amazon for about $15

Answer 2

Shifting your debt to a new loan is such a bad idea. You end up running the credit cards right back up. Work on paying off the debt and fixing your bad credit.

Make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Put every penny you can squeeze out of that budget on the highest interest rate debt, while making minimum payments on the rest. When the highest interest rate debt is paid off, move to the next till they are all paid off.

Once you have all your current debt paid off. Get your credit report and start settling all those negatives. Start with the newest and work backwards. The older the debt, the more likely you can settle for less than the full amount. Get any settlement agreement in writing before you pay and do not give them access to your bank account.

These creditors are not interested in small payments over long periods. Lump sums will get you the best settlement deals. If you do have to make payments, they should be large enough to pay off the debt within a few months.

You can also increase your income by getting a second job and throw that at your debt.

It will take 2 or 3 years to pay off and clean up your credit but you should have a decent payment record and be more likely to qualify for a home or car loan.

Answer 3

Bad credit debt consolidation help permits a person with poor credit rating, to obtain bad credit debt consolidation loan so that monthly installments can be reduced. What a person has to do is ask for apresent debts have been dealt with, the bad credit debt consolidation loan can be paid off easily.

Answer 4

You don't need to pay anyone to help you. You can do it yourself.

Go to CreditBoards.com it's free and their credit repair forums are great! You can find answers to any question and if you don't you can just ask. Everyone there is trying to do the same thing you are and they are so helpful and supportive. Try it...it can't hurt.

Answer 5

Check out the free evaluation form at www.totaldebtsolutionsllc.com ....they can help.....really cant say enough good stuff about them. One stop shop offering credit repair after the fact as well.

Answer 6

do it your self for free

www.creditinfocenter.com