PostHeaderIcon Do Those Debt Consolidation Companies Really Work Or Are They A Scam?


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I was thinking about consolidating my debt and wondered if anybody had a good experience with one.

5 Responses to “Do Those Debt Consolidation Companies Really Work Or Are They A Scam?”

  • Tim T says:

    They do help sometimes, but they also make their money.

    They might have a fee that you pay as part of the new loan you take out. Make sure you either negotiate their fee, or price check their fee against other consolidation companies.

    Frequently, the fee will be large, but they’ll hide it in a nice low monthly payment and extend the payments out like 6 years so it looks attractive.

    Don’t get fooled: Negotiate their fee down, and also negotiate the interest rate down. Those two locations are where they make their money.

  • Sgt Big Red says:

    Like most other businesses, there are good points and bad points to consider. BUT, why pay someone more money (which = more debt) to do what you can do a lot cheaper and keep your head above water.

    Debt counseling and management is by far a better way to go. To find out more about these programs and how to get out of debt I have provided a link to the Fair Trade Commission web site to explain what you can do.

    http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm

    Read this information first before making any hasty decisions.

    Hope this helps answer your question

  • bdancer222 says:

    Biggest problem with debt consolidation is you are only shifting your debt to a new loan. The interest rate might be lower but the time is stretched out and you end up paying more in interest by the time you finally get the loan paid off. Many people run the credit cards back up and then have the big loan payment and the credit cards to pay.

    Credit counseling is definitely a better way to go. Check here for a NFCC member in your area: http://www.nfcc.org/. These are legit, non-profit companies that offer debt management programs for a nominal fee. They don’t settle your debts. The negotiate lower interest and payments so you can pay off your debts.

    Absolutely avoid debt settlement companies. Most are pure scams. At best they will trash your credit and get sued by your credit card companies.

  • Charles T says:

    hi
    Debt consolidation is not at all a scam, its there just to help you out and tackle your debt yourself till they are all paid off. The easiest method of getting of your debt is to debt settlement. They managed to reduce your debt. They even charge very average fees for all services and help you out in every possible situation.

    Just check out http://www.ezconsolidation.com.

    With the help of a Debt Consolidation, you can avail multiple benefits. Firstly, you may reduce–your monthly costs. Secondly, you may avail a competitive interest rate. Thirdly, you could be getting a flexible repayment period. Overall, you will be managing your loan a lot better.

  • Mike A says:

    Their money ,as someone above mentioned, is included in the monthly payment. Usually you can lower the amount you pay each month and be debt free in roughly 3 years. I have seen it work time and again. Good luck.

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