Credit Card Debt Consolidation Companys

[ctcsoft]

Can anyone give advice here? My friend who is really nice is going through a hard time while she finishes her 4th and final year of college.

She owes about $4500 in CC debt and wants to consolidate it somehow but doesn't know the best way to go about it. She doesn't want to leech and beg her parents to pay it off so she has asked me what I think she should do.

I've been lucky and never been in debt like that. So I have no real answers for her and don't know the best advice off hand.

Would a company such as Profina be good for her? If she consoldiates the CC debt, will it hurt her credit if she pays it all off?

Anyone with advice please give it to me so I can relay to her ASAP.

 

[Sluggo]

I have heard that Consumer Credit Counseling Services is about the only one that isnt a total rip-off.

Be forewarned, after starting up with one of these companies, I am told that you are basically treated, for credit purposes, like you have filed a bankruptcy.

 

[Queasy]

Originally posted by: Sluggo
I have heard that Consumer Credit Counseling Services is about the only one that isnt a total rip-off.

Be forewarned, after starting up with one of these companies, I am told that you are basically treated, for credit purposes, like you have filed a bankruptcy.

Correct. Stay away from most Credit Counseling services. They are scams meant to take money. Go check out Clark Howard's website.. He's a real consumer advocate and you can find information on credit counseling there.

Credit counseling shows up on your credit report and is generally looked at negatively by lenders. Why? I don't know. If a person takes responsibility and pays off his debt, even if through a counseling service, I would think that would be a positive. Alas, I don't make the rules.

 

[ctcsoft]

any other ideas?

I guess she better beg her parents because until she finishes school and gets a real job she won't have enough cash flow to pay back anything besides intrest.

 

[badmouse]

Have her call the credit card companies and ask for a reduction on the monthly minimum payment. Then, cut the things up and pay in full as soon as she has income.

 

[DaveSimmons]

Originally posted by: jmoe782
any other ideas?

I guess she better beg her parents because until she finishes school and gets a real job she won't have enough cash flow to pay back anything besides intrest.

Either just pay the interest or beg mommy and daddy, if she can't cut her expenses with the power of ramen.

Most of the "non-porfit" credit counselling / debt consolidation services are scams, they arrange for a ripoff loan with the for-profit company that they are a front for.

 

[The Stigenator]

try consumer credit counselling Service. CCCS.

http://www.cccsla.org