Has anyone used a debt consolidation company? Your experience was ?
Question:
Answer:
If you decide to pay off your debt on your own (to NOT use a consolidation agency), START with the debt with the highest interest rate (generally that's credit card debt, but check the APR's on all of your debt). Throw as much money at the higher interest rate debt first, then work your way down (Rememeber that you get tax benefits from student loan interest and mortgage interest paid, which lowers the effective interest rate on those particular loans).
Also - many folks don't know that companies will work directly with their debtors to work out a payment plan AND lower interest rates. You do not need a consolidation agency to do that for you. Call them yourself and politely explain to them that you are trying to avoid filing bankruptcy and ask them how they can help you do this (i.e. can they lower the interest rate and/or work out a different payment plan for you). If a balance has already been sent to a collection agency, call the collection agency (you can get this info from your credit report, including phone numbers). Remember, these companies know that getting SOMEthing from you is better than getting nothing from you - so if they think you are honestly trying to avoid bankruptcy, they will be more willing to work with you.
I wish you luck in your efforts.
Make sure you use a reputable one.
I used this one and they were EXCELLENT ... http://greenpath.com/
Through them, I paid off over $35k worth of credit card debt in a little over 3 years.
Don't pay it off on your own .. they will stop all the collection calls, they will greatly reduce your interest rates and they will stop all the penalties and late fees from the IRS, etc if you owe them.
i did investigating on that and they cintrole how you spend your money and how much you can spend and on what. im to spoiled for that kind of control over me. i just paid off all my debit on my own. open a savings and deposit money into each pay check. then start with the least expensive debits and slowly pay it all off. it took me a year and a half. i have a few medical on my report now. but that is because my previous health insurance was crap. hope that helps.
I've heard complaints from a few people about being screwed over by them. Do your research about the company before doing anything with them.
More Related Questions & Answers...