Does Debt consolidation help?
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I did a debt consolidation about 5 years ago and I'm so glad I did. They got the bill collectors to stop calling me, in some cases were able to lower my interest rate or payments and I sent only 1 payment a month to them and they distributed it to my creditors. It took me nearly 3 years to pay it off but it was worth it. It's better than bankruptcy because that will sink your credit more than it already is. Check with the Better Business Bureau to find a reputable place that's not a scam. Hope this info helps.
It depends. It can help you if you use it to pay off all your debts; it can hurt you if you use it to avoid paying part of your debt or end up paying even higher interest to the consolidating company.
Remember that these debt consolidation companies don't do anything for you that you can't do for yourself - they just make it easier by brokering the deal for you. Call the American Consumer Counseling Center - unlike a lot of those "debt solution" places, this is a non-profit and won't take your money. They can give you some great counseling and advise you on the best options for your particular situation.
American Consumer Counseling Center
http://www.consumercredit.com/ or 1-800-769-3571
A few years ago I had very high credit card debt. All I did was pay every extra cent I had (including my tax refund) to pay down the credit cards. That worked for me, I would watch out for debt consolidation, they might charge you more fees. I would get an extra job if you can or just cut out some expenses (like cable).
NO! It actually lowers your credit rating as read by individuals because it shows up as a lender on your report. This should be a last resort "ditch effort" when your debt:income is upside down and you are having trouble paying on time or making the amount of the payments.
If you are not late, don' t sweat it. In order to get financed these days, continuity is what makes your score gradually rise. Be aware that the worse thing to happen to your score is a late payment!
hope this helps
Yes, debt consolidation helps if you do it yourself.
It helps the company and kills your credit if you pay them to do it for you.
May I suggest repairing your credit, applying for better credit cards and consolidating your other debt onto thoese cards?
May I also suggest maybe getting a home equity loan or refinancing your home?
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