PostHeaderIcon What is the difference between Debt Management and Debt Consolidation Companies?

2 Responses to “What is the difference between Debt Management and Debt Consolidation Companies?”

  • Judy says:

    Debt consolidation companies are scamming people like crazy.
    Fox news report had a 15 minute show on this.
    Some debt consolidation are calling themselves negotiation.
    and vise versa.
    They take your money, and don’t pay your bills. You end up in court.

    You can do this yourself.
    Go to a bookstore and get a book like
    credit repair for dummies
    there is nothing they can’t do, you can’t do yourself.

    If you don’t have time to read, look up in your phone book – not online
    consumer credit councelling services in your area
    They will take over and tell you to do what those books tell you to do.

    Google the name of any company followed by the word
    scam, rip-off, or complaints
    you will see pages and pages or sites

  • Andre2812 says:

    Debt Management – This is when a fee is charged to manage your finances and debts, because you might not have time or for whatever reason. There are dodgy companies out there and there are good companies, as with any industry. You will most likely pay a fee for this service.

    Debt consolidation – unless you know what you are doing, try and stay away from this as you are effectively taking a loan to pay of debts (including their interest) and then you will be paying interest on top of that. (Use as a last resort only – or if you get a really good deal in that your interest rate is substantially reduced.)

    Be careful and do as much homework and as many calculations to truly understand each process and whether the company will help you.

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