Has anyone actually had success using those debt consolidation companies?
Written By: admin on May 26, 2009
One Comment
I'm wondering if anyone has had any success using those debt consolidation companies and if so, what's the process of it? How does it work and will it really work at lowering your interest rate/debt owed? And what company(ies) did you use? Thanks!
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Tags: Debt Consolidation, debt consolidation companies, interest rate
Don't do it! I know a ton of people who used those so called "debt consolidation" companies who went further into debt over them. No matter what, you will always owe what you did not pay.. .often they promise to remove things from your credit…..don't fall into this, you can dispute inaccurate things yourself. In the long run, you may end up owing the debt consolidation company itself….which could be worse!
Stop charging, start paying cash. Pay all your current bills on-time, and keep current accounts in excellent standing current and in excellent standing.
Review all your credit reports, then learn how to live on a budget so you can start paying off your debt. Ex: shop cheaper, eat in instead of out, temporarily forfeit the lavishes you do not NEED, like a $70 bottle of lotion. I find eBay and Craig's list are a fantastic place to sell things you do not use. You can get extra $$! One of the first steps to controlling debt, is controlling the way you spend money. Especially if you are spending money you do not have!
Then, make arrangements through the mail only with your collectors. Work out a deal you can afford. Ex $50 a month to each delinquent account. Then question for a letter of deletion once the debt is paid off. Make sure you get this in writing if they agree.
As far as lowering the finance charges, you can request that yourself. Just write and question. Or, if it is your credit card company, just call and question.
Excellent Luck!