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Debt consolidation companys?

Discussion in 'The Lounge' started by stallion85, Jul 21, 2004.

  1. stallion85

    stallion85 1/2 ton status

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    Anybody have any experience with these? I almost got suckered in to one company but they wanted $559 up front for there services. I felt a little weird about it and cancelled there service. I started to feel a little weird when the guy started saying stuff like "you are going to get calls from your creditors saying that you owe them money but don't worry about it, they can't mark your credit down!" WTF. The company was Consumer Debt Solutions. Anyways, for now I am open for suggestions.
     
  2. SHAWNSTER

    SHAWNSTER 1/2 ton status

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    you are going to get calls from your creditors saying that you owe them money but don't worry about it, they can't mark your credit down!" WTF. The company was Consumer Debt

    I do commercial collections-so this doesnt apply to you but, when the consolidation companys tell debtors that-they are full of sh-t----- and another one is thet tell you that as long as you pay the minimum, theres nothing bad happening to your credit-yeah right-those companys are all bad-never look out for you-its all about there $$$$
     
  3. gjk5

    gjk5 3/4 ton status

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    You might as well file for Chapter 13 BK. Those places suck. I'm a mortgage lender, and most of the time credit counseling is considered a bankruptcy for all intents and purposes. i would either go full boat and file for BK or just negotiate with your creditors yourself.
     
  4. stallion85

    stallion85 1/2 ton status

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    I am not behind on my payments or anything, I was just told that they could help you pay off your debt fatser by working with you creditors to lower your interest rates. I guess it seemed to good to be true. Since the wife got out of the military in 01' we have been living off my income solely, so the CC's went up trying to get things we wanted and could not afford. We are both going to school and have 2 kids. We though about her getting a job but daycare is so darn expensive she would basically be working to pay someone else to watch our kids /forums/images/graemlins/dunno.gif Kind of pointless.
    Anybody else stuck in this trap? I figure once we pay off the wifes SUV, we will keep it and save money without having to make a car payment.....
     
  5. SHAWNSTER

    SHAWNSTER 1/2 ton status

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    this is funny but i always say it would be funny for the collection agency's calling me-i have been collecting for almost 8 years now- and me and my wife are in a similar situation-we both worked and when she got pregnant and then had the baby-i dont want anyone else wating our daughter so we made the choice for her not to work anymore and and the cc bills were maxed- if it want for our house catching on fire we would have filed bk- but the insurance money helped us a lot-i was able to pay off most of our debt-but we are there again-but now i make al ittle more money and its not as bad---oh and 1 more thing-if you are going to be broke-be broke with the sh-t you want-alot of people are broke with just paying bills
     
  6. 1-ton

    1-ton 1/2 ton status Premium Member

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    DO NOT GO TO ANY DEBT CONSOLIDATION COMPANY THAT ASKS FOR MONEY UP FRONT! THEY WILL RIP YOU OFF!

    Also, as GJK5 said, any debt negotiation with a debt consolidation company will show up on your credit rating as a major ding in it. If there is any way you can get a debt consolidation loan on a home you own, or through a family co-signer, which will lower your interest rate, then you should do that. You could also go the full way of Chapter 13 Bankruptcy because it will be just as bad on your credit as lowering your interest rate through debt negotiation.
     
  7. Shaggy

    Shaggy 3/4 ton status

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    You just need to come up with a plan. It may take a few years of living slim, but it can be done. I was on the verge of having to declare bankruptcy about 5 years ago but managed to squeak out of it just barely. In the past 2 years I've paid off over $30k in debt by cutting out everything except neccesities for the most part. The last $2k should be gone in a couple of months and then I'm debt free except for a mortgage and 2 cars, but at least I have something to show for those debts. Make a budget and stick to it.

    You can also try to get a credit card that has 0% interest on transfers, people don't realize how many cards are out there that give you that deal. When the introductory 0% rate ends, transfer the balance to another card with the same deal and cancel the first one.

    When you make a minimum payment on most cards you're really only covering the interest, so you're screwing yourself in the long run. You need to pay at least twice the minumum payment to make any progress on the debt.

    If you own your own house, look into a home equity line of credit to use to pay your bills off.

    Most of all, DO NOT USE THE CARD ANYMORE! Credit cards are useful tools, but too many people use them to buy stuff they want instead of being patient and saving money. You know all to well, now you have stuff but you can't buy any more stuff because you're stuck sending money to pay off the old tuff you already have and can't afford. I did the same thing, when I realized how much I owed I realized that I didn't even have alot of the stuff anymore that I had bought with the cards.
     
  8. stallion85

    stallion85 1/2 ton status

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    Thats some good info guys, I appreciate it. We have cut all of our cards up and no longer use them. We have money in savings for emergencies and such. So for now I guess we will pay off as much as possible without using these so call debt consolidation companies. it was funny how helpful the guy was, then when I called him and told him I wanted out he was very short with me and nearly hung up on me without even saying goodbye. Douchebag!!! Anyways I feel better now not going through with it. I should have posted this before I wasted my time with these guys /forums/images/graemlins/deal.gif
     
  9. mrk5

    mrk5 The Sticker Guy Moderator Vendor GMOTM Winner Author

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    We went through Consumer Credit Counselling Services (CCCS). Everything went great. They got all but Sears to lower the interest on the cards. They required us to close all the accounts, just cutting up the card is not enough. There was no up front money. We only had to pay like $15 a month for the first 3yrs. They sent us a statement every month showing how much they paid to each credit card. Then you compared that with the individual credit card companies' statements to make sure it was right. It lowered our total monthly payments to the credit card companies by $100.

    We've since consolidated with a home equity line of credit. The rate is lower than the 11.5% all the cards lowered to with CCCS. The only credit card I carry now is my business card.

    It didn't hurt our credit any. We've purchased a house and two autos since using CCCS.
     
  10. bouncytruck

    bouncytruck 1/2 ton status

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    You can do basically anything they offer yourself. If you are not late on your credit card payments, most companies will lower your interest rate if you ask. If they do not, close the account and pay it off as quickly as possible. Start with the smallest bill and concentrate on paying it off. Once that one is paid off, apply the amount you have been paying that card to the next lowest card, and so on.

    You will take a hit on your credit if you use a consolidation/counciling company. It will lower your credit score and you will pay for it with higher interest rates for many years to come.
     
  11. mrk5

    mrk5 The Sticker Guy Moderator Vendor GMOTM Winner Author

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    We just refinanced our house with at 5.125% fixed rate 20yr or 30yr (can't remember which now). I think that is pretty good.

    We tried calling and getting the companies to lower the rates, but they wouldn't.
     
  12. 88Silverado

    88Silverado 1/2 ton status

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    Several years ago I too used Consumer Credit Counseling Service (CCCS) I will say they are one of the real-honest,non-profit services out there. As was mentioned, I had to close all my accounts, they were able to negotiate much lower interest rates with all my bank cards except Mervyns....Those pricks did a charge-off against my credit which CCCS was fighting with them over /forums/images/graemlins/angryfire.gif

    I would look into CCCS. I think there was a $10 or $15 monthly fee. Basically you sent them a check every month for a specific amount and they paid the creditors direct.

    Worked for me /forums/images/graemlins/waytogo.gif
     
  13. Seventy4Blazer

    Seventy4Blazer 3/4 ton status

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    in all honesty the best thing you can do is to sit down, do a budget.

    pay yourself play money FIRST! as little as you think you can get by on but still have fun.

    then in your budget add in your normal bills making min payments on all your cards and other needed bills. take the card with the highest intrest rate and send the rest of your cash to it each month. once that card is gone pick the next highest interest rate. do this till no more cards are around. also call in and shut them all off.

    the bigest thing you can do wrong is NOT STICK TO YOUR BUDGET!
    you have to make it and STICK TO IT!!

    that was my ex wifes problem.

    anywho, debt consolidation companies sucks and can hurt you big time. i looked into them and they are a joke.

    good luck, and if you have any questions please post up. i have had great luck with this method.
    grant
     
  14. mrk5

    mrk5 The Sticker Guy Moderator Vendor GMOTM Winner Author

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    The budget was something that CCCS has you do. It is a real eye opener when you sit down and start figuring out where all the money goes. We've used a budget ever since, and it really helps. Makes it easy to get through Christmas without using credit cards.
     

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