Debt Consolidation

Question: Can someone please tell me if debt consolidation companies can do this?

(Posted by: nimzaj1969 on 2009-06-26 09:09:41)

Ok...I'm looking for a true answer to whether or not a customer like myself has the ability of reducing my interest rate with my credit card companies myself or do the debt cons. companys have more leverage? I am current with all of them but am sitting with about 10k in debt with high interest rates. I'm considering a debt consolidation company who swears up/ down they can lower to approx 6- 10% w/ out damaging my credit. Who can tell me the truth and are there better debt cons. companies than others?

Posted by: Lores R on 2009-06-26, 09:20:27

In my opionion I think you can do just as good of a job on your own. I was working through credit solutions and they charged my I believe 15% to handle all of my debt. I had a car I owed 12,000 on and they got a settlement offer of 6,565 and 6 months to pay. I have since closed my account with credit solutions, and made my own settlement agreement with the car company. I got it down to 5,217.00 and I got 12 months to pay it. I know this isn't the same as your situation, my accounts were already in collections and charged off and hurting my credit, but I think that those people are just out to get money and you can do whatever it is they are offering to do, for free.

Posted by: yodie on 2009-06-26, 09:33:36

Try calling each credit card company on your own first..have you ever been late or missed a pmnt?-if not, explain to them you have had your account open for X amount of years and have never been late. You are having financial trouble, you do not want to close the account...you have no problem paying them, is there any way to reduce your interest rate..see if they are willing to work with u..if you have nothing negative with/ on the account, most of them will work with you...good luck

Posted by: bdancer222 on 2009-06-26, 09:56:13

Be very careful of these debt consolidation companies. Some will charge large fees up front and some are pure scams. Only use a NFCC member credit counseling company: nfcc.org/ . These are legit, non-profit companies who offer a debt management program for a nominal fee. They negotiate lower interest and payments so that you can pay off your debt. While in the program it will show on your credit report. However, upon completion of the program, that notation will be removed and you will have decent credit. You may or may not be able to negotiate lower interest on your own. It really depends on which credit card companies. Some will work with you and others won't. The credit counseling people can probably work out better rates and payment reductions that you can on your own.