It is wise to use debt management/consolidation companies to help manage debt?
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Debt management/consolidation companies can sometimes help make your financial situation more manageable. However, you really need to use caution when picking a company to work with. There are a lot of scams, fly by night companies and companies that really don't do very much of anything at all to help better your situation. I would look up the companies you are considering working with on ripoffreport.com and the bbb.org to name just a couple. Many mortgage lenders consider credit counseling/consolidation companies to be a step above bankruptcy, and barely at that. Many of these same lenders will not lend to a person involved in credit consolidation workout programs. These programs could also possibly negatively affect your credit and your credit scores. Good luck and check out the credit blog below for more tips and information.
Huney,thats another debt being added to your collection!
dzwreck is correct. if you've never missed a payment, then the companies your seeking can actually make your credit negative. i've tried that & that's what they've told me. you'll be paying them an administrative fee for handling your accounts.
save your money, reassess your financial obligations, create a budget, & reallocate your credit card payments accordingly. ladder your credit card payments--that's what the consolidation companies do anyway. i did it myself & was able to eliminate 5 creditors in 7 months.
good luck
If you never missed a payment, it sounds like your managing your debt already. Don't use those debt mgmt companies, they just scam people who are already in debt. Just pay of the principal on that card, don't just make minimum payments!
You can visit www.cashguru.info and find very useful tips and several articles on credit related matters.
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