Credit Card Consolidation

I have about 6000 dollars in credit card debt and high intrest rates, does anyone know of a good credit card consolidation company? One that does not charge huge fees? I know there would be some fee's for this service, just need some good advice please help!

I do not believe that using debt consoliation is a good plan. Personally I would not spend even $25 (it's usually 100s) of dollars for this kind of service that could be going towards the actual debt instead. Instead, I would work 3 jobs to pay these off.

The majority of people who do consolidations do not change their behavior, which is the main problem. You could be right back in the same boat.

See the source below for the hows of getting out of debt., This is not easy, and it is not a gimmick. I can testify that it works. Type in the "Baby Steps" in the search field to get started

2009-07-12 14:55:42 by ohyaknow

Most debt consolidation companies do nothing better than simply ruin your fico score in order to settle your debt. If you really want to work with ...

I am confused. What is credit card consolidation? What is loan consolidation? What is a debt consolidation loan?

A loan consolidation and a debt consolidation are the same. A bank loans you enough money to pay off credit cards or loans (like a car loan). They group it all into one single loan through them (hence the word "consolidation"). So they take all your outstanding "debt" and put it in one single loan with a fixed monthly payment.

A credit card consolidation can be one of two things:

First - You take a credit card and "transfer" the balances of all your other credit cards onto it. Then you have only one single credit card bill.

Second - A debt consolidation loan where you get a loan through a bank to pay off credit card debt. Sometimes the bank will want you to cancel the cards too. Not always.

Hope this helps!

2009-03-18 15:24:54 by

Price: $0.99 $0.99

I know they are not the best choice. Please don't tell me how to manage my credit cards. I am beyond that stage. This is the last option for me. I know some of the companies are fradulent and some effect your credit more negatively than others. I just need to know the names of CC Consolidation companies that are legimate and maybe won't hurt your credit as much as others.

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.

None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.

If you have already defaulted on your cards or they're past due, then you can negotiate directly with your creditors. See Suze Orman's advise:
http://www.youtube.com/watch?v=jS43XFa3K GU
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Plan B is entering a Debt Management Plan (DMP) with a non-profit credit counselor like CCCS (Consumer Credit Counseling Services). Contact your local Red Cross for a referral. They can negotiate lower payments and interest rates. They do not negotiate settlements.

They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you're enrolled in the CCCS debt management program.... Otherwise, it can be a very good way to deal with your debt.
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Plan C is filing for Chapter 7 bankruptcy. Keep all options open and do what is best for you.

2009-05-04 18:20:30 by me

Price: $9.95 $9.95

I have heard that some companies end up with all your money, are there any good credit consolidation companies and if so what are they? Thanks for any help

Rarely do they help.

The fact is, you owe more money than you feel like you can pay. You have to change the very behavior that is causing it. The consolidation companies figure out what you owe, add one new (additional loan) to the mix (they loan you the money to pay the others off) and then they charge you more interest. They then go to the credit card companies and negotiate on your behalf for a lower rate, or better terms.
You end up just owing MORE people MORE money.
Does that sound like a way out of debt?
Not to anyone else either.
You have to change your life to change this behavior.
Start at the website below--but the real problem is that you are living beyond your means.
You need to increase your income (a second job, more hours, sell handicrafts); decrease expenses (spend less, move into a cheaper house/apartment); or sell assets (sell the car, and walk to work, hold a garage sale.)
Yeah, I know it hurts. But you haven't been in charge of your money--you've let it get in control of you.
Don't spend the rest of your life fighting against creditors. Take control now.
The website will help you to make some tough decisions, and give you some great advice--but it is HARD WORK.

There are no good credit consolidation companies, because none of them change your attitude towards your money. You must.

2007-06-18 11:16:10 by georgiegirl

i was thinking of paying credit cards off because of collections. Should i use a credit card consolidation company to pay them all off and have only one payment and avoid bankruptcy?

Many people think that using a consolidation company is one step away from declaring bankruptcy. This is not necessarily true. Not every credit card company or lender of credit thinks this way; it's subjective. A consolidation company, for some people, is the best way to get out of debt.

2008-02-21 09:24:48 by mtvdept2000