Card Consolidation Credit Debt Reduction

I need help with paying off my credit card debts. There are so many debt reduction /consolidation agencies that I don't know which one is good/authentic and will give the best rate (discount). For those who had gone through this experience, please advise. Thanks.

I wouldn't use any of them they are rip off artists. They take your money and do nothing, been there done that. Go to Consumer Counseling, in every city or county, it is free, non profit and they don't charge but they will contact all the places you owe money to and get you with lower payments and great ways of getting out of debt !! They are well known by all companies and acknowledge Consumer Credit Counseling as serious and good to work with .

2009-05-03 04:46:52 by hayati k

Consolidate credit card debt by taking out a personal loan or doing a credit card balance transfer. Consolidate credit card debt with tips from a ...

The Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% - Payment History
* 30% - Credit to Debt Ratio
* 15% - Credit History
* 10% - New Credit
* 10% - Credit Types in Use
A small loan consolidation with low interest is the best (for credit cards)I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogs pot.com/2007/07/loan-consolidation.htmlG ood luck!

2007-09-18 20:41:45 by onceisenoughilearnedmylesson

Price: $16.95

I have amassed $16,000 in credit card debt. I am contemplating the best way to tackle this debt as there are other things that I want to do with my recently purchased condo. However, I will not begin to make any improvements or take on further debt until I am totally credit card debt free.

The credit card debt is contain on (2) credit cards that have an interest rate of 9% and 12% respectively. I am considering a debt consolidation loan but preliminary research shows that the interest rates being offered are higher than my credit cards’ interest rate. The fixed payment of a debt consolidation loan is what is most appealing to me. What suggestions do you offer? Is it possible to receive debt consolidation loan at a rate lower than what is being offered? Are there other debt reduction remedies that I should consider? Let me know if you need additional information. Please help. Thank you for your time

This is actually a pretty easy answer. If you can get a consolidation loan at a lower interest rate and can afford the payment, you should do it.

Otherwise, it really is a discipline issue. Any installment loan will have a fixed payment, but the payment would certainly be higher than the combined credit card minimum amounts. Therefore, there is nothing preventing you from paying the same amount (as the would-be installment loan payment) on the credit cards each month. Depending on the balances, most would say pay the higher interest rate first but there are benefits to paying off one completely first as well. The interest rates are close enough that I really don't think it matters where you put the extra money as long as the balances are coming down each month.

The only possible benefit to getting an installment loan at a higher rate than the cards would be to try and quickly improve your credit score. This is not a given depending on your credit file but in theory, reducing your credit card utilization should have a pretty big impact on your score. This is assuming your utilization is over 35% with current balances. Paying these off with an installment loan could improve your score more than the negative impact of opening a new account and taking an inquiry or two to get the installment loan. If you do not need the bump quickly, I would NOT get the installment loan unless the rate is lower. It doesn't make financial sense and there is not a 100% guarantee transferring the debt from cards to an installment loan will improve your score.

I cannot answer your question about whether or not you can get a debt consolidation loan at a lower rate or not. That depends on so many things like credit, income, and assets that you really need to speak to a banker. I would recommend a credit union in most cases.

The only other possible thing you can do is contact the credit card companies and ask for a concession on rates or fees. If you have not been late, this is unlikely but many card issuers are working with the card holder more and more to reduce the payments, fees and interest they pay in an effort to stave off delinquency and chargeoffs. This is less likely in your case because the cards are already at a pretty low rate.

Otherwise, there really is not much more you can do that makes sense. Just apply as much as you can to the card balances each month. Just "pretend" you have an installment loan and pay that much each month - the results are the same.
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Hope that helps, post back if need be- regards



Good luck!

2009-10-17 20:56:23 by Robert Albert

Price: $8.99

I have built up about 12000 dollars of debt between the period of college graducation til I found my job about 1.5 years later. Right now since I have pretty stable income, I would like to deal with my debts asap. I am looking for a good debt consolidation/reduction service asap. I have been checking around, there are too many options online. Are they all legit? or There are certain ones would fit my need the best? Thank you. If you have the same experience as me, please share the info so I can go debt free asap!

I used consolidated credit counseling service, and I paid my debt with 2 years (I had a $10,000 debt back then). I am using them again now (debt amassed from using credit cards for school). I put in my info online last night, and by 9am this morning one of the counselors called me to get me set up.

here's their website http://www.consolidatedcredit.org

and they are in the better business bureau registry

2009-01-07 09:38:40 by boisfeu

Trying to get rid of credit card debt that is out of control. Don't want ones that will sell my personal info but are truly honest and follow all the laws etc.

Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement....This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator....this entire fee goes towards building a settlement account and to the consolidator's fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances...You can never predict how your creditors will respond to the deliberate defaulting of your accounts...they might settle at 50%...or they might serve you a summons, take you to court...and if they win, you could be looking at wage garnishment.

Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements...they don’t. Your creditors have the right to refuse settlements and take you to court.
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The only real non-profit firms are credit counseling services....they negotiate lower interest rates and payments but they do NOT negotiate settlements/reductions in debt.

2009-07-02 18:35:29 by spotnick