Credit Card Reduction

I am considering using a dept reduction company to reduce the principal of my credit cards. They claim that the credit card companies fair out well by negotiating lower low balances and getting those balances paid off right away. I know this hurts ones credit but after a few years and having a better debt to income ratio that my credit will improve.
Has anyone used such companies and what were your results.

a lot of those companies are scams
you can probably do as well yourself, by directly working with the companies yourself

2009-08-28 08:31:48 by Mark K

A step by step video talking about the reality of credit card debt, and how the credit card companys are really charging you 83.3% interest.

Have a friend that is in a bit of credit card debt. She doesnt want to do banruptcy or charge offs, as it will affect her credit score. My question is, if she negotiates a bill, say currently 20k, and the CC company settles for 10k, will that show up on her credit report as something negitive.

Thanks for your time.

You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - credit-report-score.10001mb.com

2009-10-05 10:40:18 by Christopher A

Price: $4.99

Disabled and on a fixed income now, I can make only min payments which only covers the interest on my credit card. I'll never get it paid off at this rate. What is my best option to get this under control and start reducing the principal?

Try to find a credit card with 0% for a year without transaction fee. Transfer a balance over. Everything you pay will go to the principle. This is the only way to bring it down at least for a year.

BOA has Visa Platinum Plus 0% for 6 months with no transaction fee

2007-08-03 13:32:18 by Kevin H

Price: $9.95 $9.95

I see a lot of advertisement from companies that claim they can reduce your credit card debt by 40% to 60%. What is the down side to using them? If they are successfull does it effect your credit rating? What do they charge? What must your situation be for them to be able to be successfull, Broke?

Debt-settlement companies promise that you can get out of your debts for pennies on the dollar. Typically, these outfits demand that you stop paying your creditors and instead send the money to them. After a few months, the debt-settlement company promises to open negotiations with your lenders and use the money you've sent to pay them.

The idea is that after a few months of not getting paid, your creditors will agree to a fraction of what they're owed.

Of course, your credit will be trashed at this point, you'll have paid fat fees to the debt-settlement company, and you may be facing lawsuits from your lenders. That's if you're lucky. If you're not, you'll risk all this, and the debt-settlement company will disappear with your money. If you need more details, read "Debt settlement: A costly escape."

Better alternatives include:

* Credit counselling. Legitimate credit counsellors have debt-management plans that reduce or eliminate the interest rates on your credit card debt.

* Bankruptcy. If you can't pay your debts, you may be better off getting a fresh start through bankruptcy. Your credit rating may recover more quickly, and you'll be able to keep the cash you would have otherwise sent to the debt-settlement company. Consult an experienced bankruptcy attorney who can evaluate your situation and discuss your options

2008-07-15 11:05:34 by Les R

Just need advice to see if this is a good idea. Ive been offered a loan over 30 months which enables me to get rid of my two credit cards. The rate is lower than the credit card rate. Being able to get rid of my cards is a big plus - although i want to keep one for emergencies but im worried ill be spending it again stupidly. How easy is it to contact the card compny to get them to reduce the limit? Thanks!

With one call reduced my limit from 7k to 1k.

2008-08-26 14:00:46 by reddwarf_hater