Question:
My boyfriend is around $17,000.00 in debt. He almost signed up with one of those debt consolidation companies online. What they told him to do in a nutshell is to pay them X amount each month and not pay his credit card bills for about 2.5 years, then they would take the money he sent them and "settle" the debt and save him thousands of dollars. This would supposedly work because since he wouldn't have paid for those years, they would think he was about to declare bankruptcy and be afraid they wouldnt get any of their money, so they would settle for much less. He was guarantted to save atleast 5grand. Has anyone ever tried this and succeeded? it sounds odd to me.
Answer:
That doesn't sound very good to me at all.
The CC companies he owes money to will hound him if he just stops paying.
There are Consolidation firms who will pay the debt off for you then you pay them at a lower interest rate, there are all kinds of sharks out there so what you are saying sounds your boyfriend found some. he wants to be careful who he chooses to use.
Below you will find some interesting reading on these matters:
http://credit-cards.ebookorama.com...
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com...
cheers
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