Have any of you used a debt consolidation org on the web before? Can they be trusted to pay the bills?
Question:
I am using one... but I found a local organization that handles and I actually visited the office, and filled out the paper work there in person. I recommend this service only if you absolutely have to... I wish I had known what i know now. Because everything they do for you, you can do on your own... It takes alot of work, but you can call and negotiate with your creditors and possibly get your rates reduced etc...
Personally I have not, however the way debt consolidation works is they arrange a deal with your creditor to reduce the balance and they in turn pay your lowered bills with the payment you give them. The best thing to do is research the company you are interested in and see how they stand with their consumers. However you should know that if you are hoping to buy a home in the next few years, lenders feel leery about issuing a loan to someone you has used debt consolidation. Only use it as a last resort.
Look the company up on the BBB and see if you can find any info on them: http://search.bbb.org/
Actually, there are several different forms of debt consolidation: it depends on your circumstances as to which is better for you.
A debt consolidation loan could simply be a loan from, say, a bank which you use to repay smaller loans. The debt doesn't go away - you simply pay it back over a longer period with lower payments and, hopefully, a lower interest rate.
Or there are the debt relief schemes where a third party will negiotiate some of your debt away and you pay them for the privilege.
Beware of scams: there are a lot of sharp operators in this industry. It will pay you to do your own research and go to reliable source for your information. This website has a lot of advice and resources.
Good luck!
I have two articles showing in my resource box that might address some of your concerns.
Good luck! Online Debt Consolidation is taking place quite often now. The matter is to find a suitable one for your own circumstances.
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