debt consolidation?

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What is the best company to go through for debt reduction/consolidation? I have about 6 credit cards and they are all at their max, and I am only 21!

Now before you go judging me and telling me not to spend my money on shoes, this was all for school, basic living expenses, and to help my family. Student loan companies wont loan to me because my credit score wasnt high enough and I didnt have a co-signer, and I couldnt get federal aid because the *said* my mom made too much (39k a year as a single parent of 3 kids, 2 of which are dependant, a mortgage and 2 car payments? dont think so!)

So… Who are the best non-profit debt relief groups to work with, coming from experience please?
also– does debt reduction show up negatively on your credit report, or does it just show up as a loan?

9 Comments
  1. Reply
    fishshogun
    May 4, 2011 at 3:58 am

    i cant judge other people as i havent lived their life. be careful who you go to. there are alot of rip-off’s in that field. i wish i could help you but i dont know who to tell you, just please be careful. very good luck to you. i know it seems bad now but it will change.

  2. Reply
    Barry H
    May 4, 2011 at 4:24 am

    There is no simple answer. The choice you are faced with is do you want to be able to buy a car or have any credit in the near future? The debt consolidation companies actually hurt your credit more than bankruptcy.
    If you are finished with school then you should be able to start paying down the cards. Since you are young you will find that you will see some increase in your income as you become more proficient in your job. You can also get a second job.
    Right now it may seem like a lot of money and you will have to struggle a little bit but it will be worth it.

  3. Reply
    Duckboy
    May 4, 2011 at 5:23 am

    Consumer Credit Counseling is a very good company. They are not for profit….The way they work is that they have pre-negotiated rates with all of the credit card companies.

    You will see your payment drop significantly, as a result.

    You will have to not use any credit while in the program…

    Avoid debt consolidation, debt settlement companies. They are wolves in sheep’s clothing….All smoke and mirrors

  4. Reply
    hmark
    May 4, 2011 at 5:32 am

    Going through a debt management company will lower the APRs that you currently are carrying with each card. I can recommend CareOne because I’ve used them and I know that they’re legal and won’t take off your arm and leg. However, from experience, before you do, take the lowest amount card and not include it with the group. The reason for that is: once you use the debt management company, your card account are considered “closed” and you will not be able to use them, only pay them off through the debt management co. So, if you would still like to have some source of credit, keep one open and pay it off yourself. You can talk to the company and let them know what your situation is, and would they give you a lower rate. They may or may not give you one (let them know it’s a hardship case: you cannot pay at a higher rate).

    Then, you have to change your due dates on each of your cards to the end of the month: 30th is best. Choose a due date for CareOne at 13th, 14th or 15th. What happens is that they deduct the money from your checking account on say, 15th but the card companies won’t get it until the 26th. They will lower the monthly payment (one lump sum) to an amount you can live with for the next 5 years.

    Good luck and I know from experience, it can happen to anyone.

  5. Reply
    biskio
    May 4, 2011 at 6:08 am

    Consumer Credit Counseling is a very good company (non profit).

    Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

    http://debt-trap.com/category/Debt-Consolidation-Basics.html

  6. Reply
    heybulldog
    May 4, 2011 at 6:53 am

    Stay away from them. Its best to handle it yourself. They cant do anything that you cant do yourself.
    If the people you get to handle you debt and they dont pay it then You, and you alone are still responsible for the debt. Your creditors will come after you and not the people you get to handle it.
    If you are not in default . You can go to your bank and just get a loan for all the debt.

  7. Reply
    timpoli
    May 4, 2011 at 7:24 am

    A loan consolidation with low interest is the best I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.html

  8. Reply
    Kent
    May 4, 2011 at 8:14 am

    Hi,

    I used “Credit Solutions” to settle my debt.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
    http://shortlinks.co.uk/4cl

  9. Reply
    Wild_Cucumber
    May 4, 2011 at 8:26 am

    Debt consolidation services can help reduce payments, interest and even amount owed. If you owe a lot and can commit to changing the habits that got you there, a debt consolidation service might be a good idea.

    DebtAway.org specializes in credit card debt and offers a free consultation (toll free at 877-326-4566). I don’t know how much you owe, but it sounds like you do need to turn things around. Give them a call and see if what they say makes any sense for your situation.

    Good luck!

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