Is there a good Debt Consolidation company that I can trust?
Question:
Answer:
A quick answer is no
Yes I use Citi bank for my student loan consolidation.
No. The entire industry is riddled with scandal, and they really do not do anything that you cannot do on your own for free.
Credit cards a problem? Call the companies. Tell them your situation. They would rather lower your interest, let you skip a month interest free, or any number of other items, then have to go through the process of collection. That is what most of these companies do, and they charge you money for that service.
Second, pay off the highest interest obligation first. Pay the minimums on the others, while concentrating on the card or loan with the highest interest.
Third, check with your bank, or credit union. See if they will cut you a consolidation loan. If they do, call and cancel all your cards (except two)
One more thing. (probably the most important)
Cut the fat out of your spending. Where does your money go? Get a $4 espressofrappichinlatte every morning? Stop it. That's $120 a month right there.
Have a cell phone on a monthly plan? Why? Get a pre-paid one, and use it only for emergencies (remember, that's the justification for getting the cell phone in the first place.) I went from paying $59 a month to paying $100 a year when I went pre-paid. Caller ID works just fine. They call, I call them back from a land line.
Paying $14.95 a month for NetFlix and not watching more then 4-5 movies a month? Cancel it.
Paying $50 per month for high def TV? If you can't afford to pay your bills, you cannot afford HDTV.
Buying lunch at work every day? Bring lunch twice a week, and you will save an average of $80 a month.
If you trim several items that you can live without out of your monthly expenditures, and apply that savings against your debt, you will be debt free in no time.
Best of luck.
There is a great place to go with this. I was in a very similar situation.
This is getting help from real people without the use of banks or credit card companies. Good Luck!
http://www.prosper.com/join/lzc5wh...
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