Has anyone used any kind of Debt Consolidation service? If so, which one? How did it work out?
I’m thinking about using debt consolidation, but they all seem kinda shady. I want to know from people that have used a service like this, who they used and if it was a good or bad experience.
I joined my credit union and as soon as I was eligible to apply for a loan, took out one with a much lower rate of interest than the existing loan I had got elsewhere. This allowed me to pay off that loan in full, and I saved thousands as a result. I had only the one loan, but if I had several, I could have cleared them all and be left with just the one to pay. I could have consolidated several debts into one.
Debt consolidation companies are businesses out to make a profit – from the fees you pay them. This money would be better off in your pocket, or paying off your debt. Giving it to them, it is dead money. And there is nothing they can do for you that with a bit of application, that you couldn’t do yourself.
Hey,
I have a lot of personal financial consulting clients who’ve used consolidations through a mortgage broker and it worked out well. Ask around for a good referral in your area.
Now, the reason it worked out well, was because I taught my clients tips on budgeting that they could use to avoid getting into debt trouble again. For instance, I recently did a little article about how my clients can save $50 a month on groceries just with a few little changes here and there. There are many others they can do as well.
Good Luck,