PostHeaderIcon Which debt consolidation companies aren’t scams and are actually helpful?


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I’m not in terrible debt but im 20 years old and can’t budget and can barely pay my car note… i need to get out of minor debt and get on the right track but i’ve been hearing that those debt-free ads are just scams… can someone please give me a couple good debt helping companies who won’t pocket all my money and make my credit worse??

5 Responses to “Which debt consolidation companies aren’t scams and are actually helpful?”

  • Suryadi S says:

    Maybe you can try below website to get the information you need. It’s about strudent loan consolidation articles for your second opinion.

    http://www.1st-student-loan-consolidation.info/Articles/Student%20Loan%20Consolidation%20-%20Save%20Money,%20Pay%20Less,%20Spend%20More.htm

  • miss_omg says:

    you are young, you really don’t need to consolidate your debts.
    What you need is Dave Ramsey. His method is tried and true, it certainly saved us in more ways than one. And it’s free! He teaches how to make a budget and how to reduce your debt to zero and how to save for the future so you can live free like noone else!
    First and foremost, list your debts from smallest balance to largest. Only pay minimum on each of them. Try to kill that first small debt a.s.a.p and once it’s paid, roll that minimum payment to your next debt and so on. This will save you hundreds if not thousands of dollars of interest, fees, litigations, etc. Give it a try!

  • cr3ativ3 says:

    Debt consolidation is the method of qualifying for a new loan to pay off your existing debts for the purpose of some cash out or a lower interest rate and payment. This method of “transferring” your current debts is the traditional way of temporary debt relief which will usually put you right back into the same hardship within a year if you’re not smart with your finances.

    I think you are referring to debt settlement companies. A legitimate debt settlement company that obtains an underwriting department to approve your file, legal department assigned for legal accounts, negotiation department to negotiate your debts, and a customer service support center for support help is NOT a scam. This type of company provides a service in reducing your debts by up to 60% and to get you out of debt within 2-3 years. A legitimate debt settlement company will disclose to you the pros and cons of the program verbally and on paper (that’s considering first of all whether you can even get approved) before they will allow you to commit to anything. Once you’ve understood the disclosures then it’s up to you to decide whether you see it fit for your situation.

  • try2help says:

    cr3at ‘s answr above is close, but a legit. debt settle co. is hard to find and cannot protect you from litigation. If they take fees off the back end after they settle your debt, I believe there are a few that the National Foundation For Credit Conseling may reccomend, but most don’t have legal depts etc, and if they ask for any upfront fees unless very minimal should set off a red flag. Always start w/the http://www.nfcc.org it is my understanding that they support very, very few debt settlement companies.

    Buyers of debt (collection agencies) usually don’t even recognize their power of attorney. Smart collection agencies will let money build up in an account, make believe they are going along w/the program then sue, and lien the debt settlement savings account. They are very controversial, but it is my understanding that nfcc.org may reccomend some under limited circumstances. If it is high balances and they give long payoff times forget it. It is an unregulated business, w/something like a 80-90% dropout rate. They know the average person will not understand the program and violate terms of program. Many go out of business. Several have recently been fined and and banned from doing business in the states they were doing business in, and some states ban them entirely.

    Anything they do for you, also, you could do yourself, and don’t have to pay anyone for, like I said they are a controversial business. Creditors like credit counseling, it is kind of a win-win situation, and insures you don’t get sued, once a creditor agrees to a payment arrangement, but once a debt is factored , sold a owner of the debt doesn’t have to go along w/the credit counseling service proposal.

    Get educated, before jumping in any program.

  • Jordan says:

    NO! Why do you want to be paying someone else to be making a payment on your behalf! It is pointless and wasteful. You pay them more money than what their service is worth! Here is a run down on how these “debt relief” companies work (and I know, I work with them on a daily basis):

    1. They compile a list containing the names of your creditors, the amounts owed to them and the interest rates with those creditors.

    2. They review your financial data (assets).

    3. They make a recommendation based off your income on how much you should pay to each of your creditors.

    4. They contact your creditors and negotiate a lower interest rate and payment arrangement. Unfortunately, 90% of these “debt relief” companies simply send a letter requesting a lower balance and/or rate. A letter creditors often ignore. Basically, you rarely see a lower interest rate.

    What I’m trying to say is, why spend more money to achieve the same result? :) Set down with a pen and paper, make a list, start attacking the small accounts first and go up the list!

    P.S. Next time pay your bills buddy!

    P.S.S. I understood your question to be referring to a CCCS; not a settlement house.

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