Anyone use a debt consolidation company?

[ViviTheMage]

I wish there was a company that would take all of my debt from CC, loans, school loans, etc and compile it into ONE lower interest rate. I also make all of my payments on time, if not more $$ then the minimum, I just want one easy payment, and a smaller interest rate would not hurt.

I do not need the amount lowered, I just want the interest lowered, and have it from one Lender...I would say about 30k in all for me, CC, school loans, unsecured, etc. exluding car loan ^_^, that is 2%

But as far as I can tell, it's too risky for the lender, becuase they would have nothing to lien against, like my car, or condo.

 

[Gibson486]

DOn't know man, but I have much more debt than you (97% school loans, 3% CC) and I pay less a month....I stopped using my credit cards and my CC debt is about 3 months away from being paid off.

 

[ViviTheMage]

Originally posted by: Gibson486
DOn't know man, but I have much more debt than you (97% school loans, 3% CC) and I pay less a month....I stopped using my credit cards and my CC debt is about 3 months away from being paid off.

I paid off a 2500 CC I used when I was in Europe in about 4-5 months, pretty good feeling...now to just get my daily one down!

 

[Baltazar325]

I'm a bankruptcy attorney and a lot of my clients are people that use the companies and then have to file because the company didnt do anything except take their money. I think most of these places are scams and prey on unsophisticated and idebted people.

 

[CPA]

Purchase The Total Money Makeover, Read it, read it again and follow the steps to the letter.


You don't need a debt consolidation company or bankruptcy to get out of your mess. In fact, by doing so you don't treat the cause, you only treat the symptom. You need a financial lifestyle change.

 

[CPA]

Originally posted by: OpenThirdEye
Check out Dave Ramsey. This guy saved my ass financially!

I had a very good chunk of debt and although the process was slow and a bit painful at first, it all started coming together more quickly as time passed. I'm on my second year of trying to rid myself of debt, but it's definitely lower than what it was!

Yes, I did end up taking on more sidework to help out with this.

I still take some of his advice with a grain of salt (i.e. I'm not going to try and pay off my mortgage in 5 years), but his books have helped me tremendously!

If you don't feel like reading a book or two of his, you can always just Google the snowball effect. Just try and have a small emergency fund built up (~$1000) first so that you don't have to resort to using credit cards.

Make that two votes for Dave Ramsey.

 

[dainthomas]

Originally posted by: sportage
They actually have little power in lowering finance charges or terms.
So basically, instead of writing out 10 checks a month to creditors, you write out one check for the same total as the 10, give it to the dept consolidation comp., and they do the stamping and mailing to the 10.
In short, you might as well deal with creditors directly, and do your own stamp-mailing.
They have little if any power on your behalf. Do the direct dealing yourself.
And its true, on your credit report it is looked upon as bankruptcy. Your credit will be
trashed on your credit reports.

Not even slightly true. We went through a company who helped us settle 12 accounts. Took about three years, and we saved close to 40% on the original balances. Our credit score was going up not long after starting it. In fact, we were approved for our 30 year mortgage (@ 6%) before we even had the consolidation company paid off. At that time our credit score had gone from the 500s to around 680.

Saying it's the same as a bankruptcy is pure FUD.

 

[ViviTheMage]

Can you explain how they can knock of 40% of your debt just like that dain?

It does not make any sense to me...where is this money magically coming from?

If no where, then it sounds like a 'hot deal'

 

[alkemyst]

Originally posted by: CPA
Purchase The Total Money Makeover, Read it, read it again and follow the steps to the letter.


You don't need a debt consolidation company or bankruptcy to get out of your mess. In fact, by doing so you don't treat the cause, you only treat the symptom. You need a financial lifestyle change.

I know about the Ramsey stuff...it's not really going to help this situation. I haven't been taking on any new debt except in emergencies...with my house purchase last year I paid off a lot of debt. My balances are pretty much the same across cards so I have been focusing on the highest interest one. Outside of a couple >12% cards my rates are decent and my hope was once those two debts are paid I'd then qualify for some 0% deals again.

If I can shave my interest rates down then that would be great....currently about $400 of my $1200 payment is interest.

In regards to the furniture thing...it's 0% and only things we needed...we don't upgrade our furniture at all usually. We did not replace the master bedroom set which was the only thing we saved from our apartment. The dining room table we have was given to us. We could have skipped the living room set, but then we'd not qualify for the 0% interest.

Again it's really not the payments hurting me, it's wanting to burn them down faster. People are acting as if I cannot pay my bills and/or are behind. This is not the case.

 

[CPA]

Originally posted by: alkemyst

Originally posted by: CPA
Purchase The Total Money Makeover, Read it, read it again and follow the steps to the letter.


You don't need a debt consolidation company or bankruptcy to get out of your mess. In fact, by doing so you don't treat the cause, you only treat the symptom. You need a financial lifestyle change.

I know about the Ramsey stuff...it's not really going to help this situation. I haven't been taking on any new debt except in emergencies...with my house purchase last year I paid off a lot of debt. My balances are pretty much the same across cards so I have been focusing on the highest interest one. Outside of a couple >12% cards my rates are decent and my hope was once those two debts are paid I'd then qualify for some 0% deals again.

If I can shave my interest rates down then that would be great....currently about $400 of my $1200 payment is interest.

In regards to the furniture thing...it's 0% and only things we needed...we don't upgrade our furniture at all usually. We did not replace the master bedroom set which was the only thing we saved from our apartment. The dining room table we have was given to us. We could have skipped the living room set, but then we'd not qualify for the 0% interest.

Again it's really not the payments hurting me, it's wanting to burn them down faster. People are acting as if I cannot pay my bills and/or are behind. This is not the case.

If you're using credit cards for emergencies then you have no idea what Ramsey's stuff is about. If you're paying high interest cards first, then you don't have a clue about his methods. And if you think he can't help your situation, which is similar to millions of others, then you are in denial.

Here's a thought, instead of continuing to do it your way, which isn't working, pick up his friggen book and try it for 6 months. Come back to me after that and tell me it didn't help. I have paid off $40K in debt since the beginning of the year because I followed his steps. They aren't magical, they are common sense steps that will take you out of your comfort zone.

 

[dainthomas]

Originally posted by: ViviTheMage
Can you explain how they can knock of 40% of your debt just like that dain?

It does not make any sense to me...where is this money magically coming from?

If no where, then it sounds like a 'hot deal'

I believe how it works is they start negotiating with the companies right away, saying something like "we'll give you 60% in cash today if you report it paid in full". At first most say no of course, but eventually they all came around. Of course they weren't all 60%, but I think that was the average. All I know is, we'd been paying for years on these accounts I'd opened in college with very slow movement downward. Then within three years they were all gone, and showed up as paid in full on my credit report. We definitely saved thousands of dollars and years more of payments.

 

[ViviTheMage]

interesting dain, who did you use?

Did they show up as missed payments on your credit report during the time you let them take over?

CPa can you give me some of the basic info that Ramsey tells you do in this situation?

 

[Kirby]

You didn't happen to buy couches, did you?

 

[tenthumbs]

I used Creditguard some time ago and it worked great for me.

http://www.creditguard.org/about_us.html

My credit score was never affected. I have no doubt there are companies that will hurt more than harm but this group literally saved my credit life and helped me get over a lot of bad spending decisions in my youth. It's cash only for me now (except for mortgage) This was my experience and others may be different. It's been roughly 10 years since my last payment. No idea if rules have changed or if the company has since gone bad.

 

[alkemyst]

Originally posted by: CPA
If you're using credit cards for emergencies then you have no idea what Ramsey's stuff is about. If you're paying high interest cards first, then you don't have a clue about his methods. And if you think he can't help your situation, which is similar to millions of others, then you are in denial.

Here's a thought, instead of continuing to do it your way, which isn't working, pick up his friggen book and try it for 6 months. Come back to me after that and tell me it didn't help. I have paid off $40K in debt since the beginning of the year because I followed his steps. They aren't magical, they are common sense steps that will take you out of your comfort zone.

I understand Ramsey...people here have read him and mentioned him.

Ramsey's belief is paying the lowest balance cards first creates this mindset. I don't need that. Since all my other balances are pretty much identical it makes no sense to do anything but pay the highest interest card. I am no longer using my credit. I am only paying it off. I don't do much outside the home as far as expensive outings go.

When I use my cards for emergencies they are also paid at the end of the month. I take advantage of the cash back. I have savings. I also already contribute to my 401k...these emergencies have been non-existent this year. I keep the cards though just in case.

Ramsey is good to help those using credit to buy into a lifestyle. I am not doing that. I do plan on putting together a full 6 months of expenses into savings outside of my retirement funds.

I don't do the 'monthly clothing' and other fluff purchases. I don't really want to make any other sacrifices that he suggests as well. We shop cheap using coupons and going to multiple stores many times to hit certain combinations of sales.

Being able to payoff $40k of debt in under a year is something many really cannot do. I have paid roughly half that this year towards debt.

My financial practices for the most part are pretty excellent...this is all debt from 10 years back mostly that's still around and I am just wanting to bang it out faster than three years and at the same time not making myself crazy having nothing...the only thing I could eliminate from my monthly bills is my cable bill. The savings of $100 even if applied directly to that debt isn't going to change much on a three year payoff plan already.

My income should drastically change in March/April when I finish my CCNP. I already have jobs lined up pending that cert. I could take new employment now with the CCNA, but that nets me $750 a month now and there is no way a company is going to give me the raise for the CCNP like I would have gotten just starting with one. The compensation diffence is about $1250 more per month which 401k, bonus, etc are all based on. If I could get even a 15% raise from CCNA to CCNP it's not even close.

I have already been taking any raises and putting them into the debt payment...this next one I plan to as well.

 

[citan x]

And people wonder why the US got in such a bad shape. We got the OP who made the decision to get in debt. His debt is for paying for college the second time, not even the first. Now that he doesn't like paying, he just wants someone to make it go magically away. The worse part is that he can pay for it, but he doesn't want to.

Makes me want to get it debt, and then not pay for half of it. Sweet.

 

[alkemyst]

Originally posted by: citan x
And people wonder why the US got in such a bad shape. We got the OP who made the decision to get in debt. His debt is for paying for college the second time, not even the first. Now that he doesn't like paying, he just wants someone to make it go magically away. The worse part is that he can pay for it, but he doesn't want to.

Makes me want to get it debt, and then not pay for half of it. Sweet.

that is not what I am looking for.

 

[alkemyst]

Originally posted by: tenthumbs
I used Creditguard some time ago and it worked great for me.

http://www.creditguard.org/about_us.html

My credit score was never affected. I have no doubt there are companies that will hurt more than harm but this group literally saved my credit life and helped me get over a lot of bad spending decisions in my youth. It's cash only for me now (except for mortgage) This was my experience and others may be different. It's been roughly 10 years since my last payment. No idea if rules have changed or if the company has since gone bad.

I checked it out...they are basing my current situation on a 30 year pay off and they can get me down to about 22 years.

I currently going to pay this 27000 off in about 40 months with nothing else changing on income.

 

[tenthumbs]

Originally posted by: alkemyst

Originally posted by: tenthumbs
I used Creditguard some time ago and it worked great for me.

http://www.creditguard.org/about_us.html

My credit score was never affected. I have no doubt there are companies that will hurt more than harm but this group literally saved my credit life and helped me get over a lot of bad spending decisions in my youth. It's cash only for me now (except for mortgage) This was my experience and others may be different. It's been roughly 10 years since my last payment. No idea if rules have changed or if the company has since gone bad.

I checked it out...they are basing my current situation on a 30 year pay off and they can get me down to about 22 years.

I currently going to pay this 27000 off in about 40 months with nothing else changing on income.

Took me five years but I didn't have as much debt as you. I was also pointing out that not all these groups are scam artists. Good Luck. Get rid of your cards!

 

[ViviTheMage]

Originally posted by: citan x
And people wonder why the US got in such a bad shape. We got the OP who made the decision to get in debt. His debt is for paying for college the second time, not even the first. Now that he doesn't like paying, he just wants someone to make it go magically away. The worse part is that he can pay for it, but he doesn't want to.

Makes me want to get it debt, and then not pay for half of it. Sweet.

wow, to be hontest, that is not at ALL what he is looking to do. He is looking to do it in a faster manner, paying less towards interest. Which I would like to do with my small debt ... but it's too small for even creditors to look me over.

 

[Canun]

I went through Genus when I had over 14k in credit card debt with some outrageous interest rates. They negotiated the interest down to 3-6%, and made direct withdrawl from my account every month. I paid everything off in 5yrs, and it actually kicked my credit score incredibly high. My wife is now using the same company, and it is really knocking out the debt fast.

 

[SP33Demon]

Money Management International (MMI). Haven't had a problem with them yet.

 

[dainthomas]

Originally posted by: ViviTheMage
interesting dain, who did you use?

Did they show up as missed payments on your credit report during the time you let them take over?

CPa can you give me some of the basic info that Ramsey tells you do in this situation?

My wife knows the name of the company, I'll have to ask her. I believe the payments showed up as missed, but for whatever reason when the accounts were paid in full, those went away.

I guess my main point is that using something like that doesn't affect your score like bankruptcy. Just the opposite in our case.

 

[DawsonsDada]

My wife and I used one and it workd for us FANTASTICALLY.

The company is Christian Credit Counselor's. Their website is at www.christianccc.org

A couple of things to note however.

1. They are NOT a debt consolidation company in the sense that they pay off your debt and then you repay them.
2. They charge NOTHING (that is 0, zero, zip, zilch, nada) per month to do everything
3. They contact your creditors and make payment arrangements on your behalf

Check out their website as a part of YOUR RESEARCH. I am not saying use them or that they will solve your financial problems.

I WILL say that they were able to help my family and I resolve over $50,000 in debt, including hospital bills, in a matter of about 3 years and saved us over $20,000 total by the time we had everything paid off.

I wish you the best of luck in everything the future has for you. If you want more info from me PM me and I will share what I can with you.

 

[DawsonsDada]

Originally posted by: OpenThirdEye
Check out Dave Ramsey. This guy saved my ass financially!

I had a very good chunk of debt and although the process was slow and a bit painful at first, it all started coming together more quickly as time passed. I'm on my second year of trying to rid myself of debt, but it's definitely lower than what it was!

Yes, I did end up taking on more sidework to help out with this.

I still take some of his advice with a grain of salt (i.e. I'm not going to try and pay off my mortgage in 5 years), but his books have helped me tremendously!

If you don't feel like reading a book or two of his, you can always just Google the snowball effect. Just try and have a small emergency fund built up (~$1000) first so that you don't have to resort to using credit cards.

Go Dave Ramsey!!!

My wife and I have read his books also and are trying to follow his principles also!

Go Dave!