SERIOUS ANSWERS ONLY!! Debt Consolidation?

Question

Can anyone recommend a good debt consilidation websites. If, so is it even worth it?

I have a judgement on my account from Bally's and I'm trying to get it off.

Answer 1

It is worth it if you cant afford your current outgoings. The debt consolidation will give you a single lower monthly payment that can be managed in exchange for a longer period to pay off the debt. Obviously, the longer the debt is held, the more interest is payable and the more money the loan company make.

If you take a consolidation loan, only ever get one that covers the amount you owe. Don't be tempted to take a larger loan in order to have some money left over to treat yourself. You want to try and pay off all your debt ASAP.

Answer 2

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.

Answer 3

http://www.gotdebt.org/

This is the website for Consumer Credit Counseling Services of Santa Clara and Ventura Counties (California). My wife and I went through them 15 years ago when we couldn't pay our bills and they really helped. They worked with our creditors to get or monthly payments reduced (and our interest rates, in some cases) so we went from paying almost $500.00 a month on credit cards and other loans to $225.00 a month. They charged us $10.00 a month for their services, and when we got all our bills paid off they worked with the credit reporting agencies to correct our credit rating.

A few words of warning, however: (1) They can only help with unsecured credit, so they can't help with car loans or a mortgage or anything that can be repossessed, (2) You have to pay them by money order every month, and if you miss a payment your creditors can demand payment in full right away, and (3) You can't open any new credit accounts while they're helping you, so no new cars and no buying a house and no more credit cards. If you can live with these rules, I'd recommend CCCS to you.

Answer 4

DO NOT USE CREDIT SOLUTIONS!!!

After having been with Credit Solutions for more than a year now, I’ve come to the realization that the company promises more than it can deliver.

To start, and most importantly, Credit Solutions makes statements during its sales pitch which are not only misleading but downright false. The prospect is lead to believe that Credit Solutions has a relationship with the credit companies and can therefore act as an intermediary to get the Credit Companies to wait while the client puts money into a savings account and thereby compiles money to work toward a settlement some day in the future. I, personally, remember this statement almost word for word as it was one of the most compelling reasons for taking on Credit Solutions.

Nothing is said during this sales pitch about how a credit card company can still go the legal route (Arbitration, and then a Lawsuit) at any time, other than to strictly point out that Credit Solutions will not act legally on the client’s behalf. Though this ‘disclaimer’ is made and made clearly, it is glossed over when the prospective client actually asks if lawsuits are something to consider. “They almost never happen.” is the response. (Of the 12 credit accounts I have handed over to Credit Solutions, 4 have gone to Arbitration AND 2 others to Court. This is a whopping 50%% of one client’s accounts!)

Besides the misrepresentation of the legal possibilities, Credit Solutions gives the client the impression of an efficient and professional office only until such time that the client actually needs to contact the company with a problem. Calls are not returned the same day, and most times not at all. When asked about Arbitration, the standard response is “We don’t handle Arbitration.” -thus leaving the client uninformed and ill-prepared. Those 'Client Service Representatives' who do offer to handle this subject tend to again gloss over the legal aspects as if Arbitration is merely a minor inconvenience. Should anything resembling a legal aspect arise, they are quick to lean on their disclaimer so clearly outlined in the contract. "We are not a legal representation." When brought around again to the misleading statements outlined above, their response is "Do you have that in writing?" The statement, of course, is never put into writing.

Credit Solutions insists you fax them all forms and papers received. They constantly say that faxes will be received “into your account” within 3-5 days. This again, is a big problem as many times faxes have not been found in my account for 2 weeks or more after they have been faxed! It’s hard to feel comfortable with a company which doesn’t know its own shortcomings. When the fax is a legal letter, it makes things even worse.

When things do come to a legal head, the client is left with a feeling of desperation. No amount of ‘We don’t do legal perhaps you need to get a lawyer’ will alleviate the feelings of betrayal from a company one is paying (and paying heavily!) supposedly for their expertise (as well as the fabled relationships with the credit companies.) Fear and anxiety cannot easily be swept away when the client is left sitting by the phone hoping that SOMEONE from the company will call AND that they will be able to help.

In contacting Credit Solutions, the client is put through a security check and then into the phone maze. Credit solutions’ phone maze is irritating to say the least. Besides being asked to confirm one’s client status not only on every call, but by every person the client speaks to, the phone system will also drop calls, give vague directions and circular forwarding before the client becomes angry and hangs up. Everyone that the client does actually speak to in person promises to pass on phone messages, but as already pointed out: returning calls to a client with a problem appears to be of low priority. The client is left angry, disillusioned and without recourse, as legal problems loom in their immediate future. As for voice mail, it is sublime to suggest that it is a joke with Credit Solutions. I have NEVER had anyone return a voice mail message and in fact, was told by one 'Credit Specialist' that no one ever checks the voice mail.

Would I have signed up with Credit Solutions had I known the problems? No. Will I stay with them now that I am more educated on their practices? Well, since I’m still paying the ‘service fees’ monthly, it seems more than likely. I will spend my time as best I can doing what I can to educate other prospective clients of this company about its misleading practices and performance problems.

SO WHAT DO YOU USE?
The Credit Management Company you choose should follow this strict list:

1) they charge nothing for their service.
2) they consolidate ALL your bills and give you one monthly payment.
3) they give you a date when all bills are paid off and you are debt free.
4) they are available by phone and will act legally on your behalf should the need arise. And in retrospect, if they are following 1, 2 and 3, then the need should not arise.

Answer 5

Do not use debt consolidation companies. You can do this on your own plus you won't have to pay a fee each month for it. Go to creditrepairinfo.com and find out how to negotiate with the creditors. Good luck

Answer 6

you're keen to smash your financial destiny for destiny years over 18K in debt? Does hubby have a 2d activity? detect a CCCS client credit Counseling provider on your section until eventually now submitting BK and notice in the event that they might get the interest diminished or eradicated and so on. Use in basic terms CCCS as different centers are purely rip offs. sturdy success

Answer 7

Be very careful. Debt consolidators have an overall bad record.

Also, credit counselors hit your credit report. There are better options.

Check the below out. Good stuff. Best wishes. There is help out there.

http://www.daveramsey.com/the_truth_about/debt_consolidation_3035.html.cfm

http://www.daveramsey.com/fpu/counseling/index.cfm?FuseAction=dspContent&intContentID=4853

http://www.daveramsey.com/the_truth_about/bankruptcy_3018.html.cfm