Credit Card Debt Consolidation Company

What is the benefit of using debt consolidation for credit card debt? I am trying to decide to either call the credit card companies myself and negotiate for a lower payoff/settlement amount, or to use a debt consolidation company? If I negotiate with the credit cards directly, will that be considered a charge off? I would want to settle myself if I can to avoid paying all the months of high interest. But if I use debt consolidation, then they will charge me a fee every month for so many years? What is their purpose? What would be the best route to go financially?

You have to make sure you have a reputable debt consolidation company. There are many out there that are not. I know that Consumer Credit Counseling is good because NCUA backs them and I have to work with them to coordinate classes for our members. The thing about debt consolidation companies is that sometimes they can get a better payment plan or rate because they have deal in place with the cc companies. Also, the credit card companies feel better because they know you are working with someone to actually pay down your debt.


You could also look into a consolidation loan through a credit union or bank. You have to look around and make sure you are getting a decent interest rate.

I think that you can get free consultations with the debt consolidation companies. This should tell you what the costs/fees would be. You can always try the calling the credit card companies first to work out a deal.

Good Luck!

2008-11-06 14:13:19 by Nik

Eliminate credit card debt by accruing more savings than debt. Learn to eliminate credit card debt from a registered financial consultant (RFC) in ...

I've become over whelmed with my credit card debt and I'm getting those phone calls because I'm missing payments and such. Anyway I'm looking for a credit card debt consolidation company that doesn't screw people over, anyone know of any from experience or just know a good one?

Try http://personal-financial-help.solutions articles.com they aren't that bad (7% for me) and definitely quick.
The Idea is to find a loan at less interests than you pay now, and fixed interests.
Credit cards can have high interests so it shouldn't be difficult to beat them, depending on your credit score.
Whoever you go with, you should always check if they belong to the American Bankers Association at http://buyersguide.aba.com or at least the https://www.bbb.org the above people do.

2009-01-27 10:32:44 by nikki

Price: $9.95 $9.95

anyone have any experience with dealing with these types of companies? recommendations?

Make sure they are a reputable company and have a good track record. I was also in deep debts last year and I took help of freedom debt relief to consolidate my credit card debts, now I am almost debt free. I am happy with their service and recommend you go for them.

2009-04-30 09:00:18 by kestrelk8

Price: $4.99

I ran out of cash meeting uninsured broken arm surgury, then started using credit cards. Did the low rate transfers and all that stuff. Now back to work, but could not make payments last few months. Hounded by their phone calls all the time. Have not answered their calls. But I am now working again and can start making payments. I am ready to contact the credit card companys. Before I do, I would welcome any advise (or benefactors, Ha,Ha). Totally, by rough calculations I owe about $80,000.
As an after thought, I am aware there were changes in the bankruptcy laws but do not know the specifics. Is bankruptcy a good option. Basically I have zero assets, no real property.

In closing, who is a reputable debt consolidation company, is bankruptcy a viable alternative, or is their an an alternative I do not know of? Thank you for your advise.

P.S.
Spend $10 for a non-slip pad for your bathtub. Money well spent !

http://www.debtadvice.org/ has an online lookup for legitimate credit counselors. Look for an organization that will look at your situation in detail, instead of producing a cookie-cutter plan.

The new bankruptcy laws have made it more difficult to qualify for Chapter 7, or the kind that releases you from all of your debts. Here's an article with more details: http://www.nolo.com/article.cfm/objectId /B0B66870-4C52-4303-919B10B9611D3EF9/213 /161/176/ART/ A bankruptcy stays on your credit reports for seven years, so it should be your last resort. See what a credit counselor says first.

Good luck!

2007-11-22 09:02:56 by ABIGAIL

The minimum payment of 2.15% of the outstanding balance. Well of course I cant that’s why I am doing the debt managment. So in other words unless I pay them what they want per month they wont accept payment is what I was told. Do I have any recourse? Because the only other option is to just not pay them.

Well, most of what omfgis said is true. There are legal ramifications that a creditor can take, such as taking you to court over your debt. However, it is unlikely a credit card company will have their attorney's pursue a debt (unless it is very large). Also, if it goes to court and you cannot pay it in one lump sum, then the court will break it down into a payment program or "force" you to file bankruptcy, which means they will only get part of the money back anyways, and with no interest being charged.

Did they give you a specific reason why or a general "denial" letter?

Just looking at what you told me, there could be more than one reason they declined your settlement offer. Insufficient delinquency. The bank probably viewed your credit history and deemed any settlement offers as being too low. We, at a very large credit card bank, used to only take off about 10% for every month past due (unless there were extenuating circumstances like death or something we knew we would never be paid unless we took a settlement). As a manager, I would NEVER have accepted a settlement without good reason, terrible payment history, and a check upfront.

I'm sure the debt management company is telling you to keep waiting until they are willing, however, that only makes things worse, since the interest and fees will add on to the balance and your settlement will be even lower. The worst part about that is, when you settle, the amount you are NOT paying can (and does) get reported as income to the IRS in the form of a 1099.

Let me know if you have other questions.

2008-02-14 13:15:52 by crazyrnot