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any one used debt consolidation or debt settlement company?

my sister has 15000 in debt and is not making progress each month. Wondering if any one has had experience with doing this and what company they used.

This entry was posted on Wednesday, September 1st, 2010 at 1:40 pm and is filed under Debt Repayment. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

8 Responses to “any one used debt consolidation or debt settlement company?”


  1. You don’t need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!

    Call all of them and work out a payment plan and try to get your interest lowered or stopped.

    Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

    You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don’t eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.

    Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

    Go to the library and get “The Total Money Makeover”. Read it and follow it carefully.

    Go check out Dave’s website as well. Yahoo is blocking his site again, so take out the spaces in the following:
    www. Dave ramsey. com


  2. I am currently using a service such as this. I spent alot of time researching this and can tell you that you DO NOT need to pay someone to help you with this. The credit card companies pay these services to help them collect the debt. A previous poster is correct – you can do it yourself. However, I got myself into the situation I did by not being thorough enough to stay on top of it. I really benefit from making only one payment and working with one of their counselors. It lowered my monthly payment by about $500. I am paying off as much as possible/month and should have it all paid off within three years. Just look for “Consumer Credit Counselors” in your area.


  3. I know of one person who did and they ended up filing for bankruptcy anyway. Debt consildation companies and debt settlement companies can be a trap. They will tell you that they can get debts consollidated or settled but they DO NOT work with every company. She would be better off finding a non-profit debt counseling service which will call the companies that she is in debt too and set up different payment plans for her and some they might be able to get some consolidated for her. If she has loans with same company\bank then she should go to them about consilidation of those loans. Debt consildation\settlement companies can also end up costing her more than what she is paying.


  4. I was in the exact same boat with $10,000. I was making minimum payments and wasn’t really getting ahead.

    People who say that someone doesn’t need a counseling service has not been in this position. There are companies, although who will charge a fee, that can help you make some headway.

    I am now enrolled in CareOne. They helped to reduce the interest rate and eliminate any late fees. Because of this, I am now able to save a little every month and have reduced by debt by $2,000 already. I do not trust debt settlement companies. The idea of just ignoring my bills so that a creditor will want to settle in the future was unsettling to me. So your sister should check them out.


  5. I used http://www.ezconsolidation.com when few year back I had faced debt problem…They provide debt consolidation and debt settlement too…


  6. The advantage of a debt consolidation repayment plan is that it prevents your creditors from harassing you as long as you go on making lower monthly payments. The drawback of the debt consolidation repayment plan is that all your credit cards are cancelled. You have to make the first payment for the program and an extra fee is levied every month. This fee can range from $10-$50 for all your creditors while others charge $5 for every creditor. This will set you back by about $30 each month that you would have otherwise used to repay your debt.

    http://debt-credit-loan.com/category/Debt-Consolidation-and-Debt-Negotiation.html


  7. Hi,
    I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
    http://urlhawk.com/4ys


  8. At first, they are different between them:
    In debt settlement, negotiations will take place with the creditors. The debt settlement company try to convince the creditors to give up a share of the money owed by the consumer.

    While in Debt consolidation , it simply means making one monthly payment instead of paying several different creditors each month. For example, the consumer would transfer the debt from the multiple accounts to a single account, such as a home equity loan or line of credit.

    There are some articles on how How to Get Out of Debt , How to Stop Debt Collector, Free Credit Card Debt, if you are interest to get further information, you can take a look at http://debt-solution-reduction-relief.blogspot.com

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