Debt consolidation

Migga · 05-06-2007

I know that these debt consolidation firms try to help by cutting back the interest for credit card payments but do they really actually work? My brother is trying one of these services out and I'm not sure he should do this. Any thoughts on the subject?

grated4life · 05-08-2007

What i don't understand is the need for a company's service like this. they are doing nothing more than joe schmoe the consumer can't do. Write some letters, beg for leniency and ask for a lower rate. So what makes them so miraculous?

Laettner14 · 05-27-2007

You don't even need to write letters. Just call your creditor, tell them you may have to file bankruptcy if they don't work with you, and you will be amazed at how quickly they lower your interest rate and work out a repayment plan with you. You should never pay a fee for this or entrust it to someone else, as it is your finances.

Colecash · 07-18-2007

If the people who resorted to these services were responsible enough to consolidate their debt themselves they probably wouldn't be in position to need the service in the first place. Some are legitimate but most are taking advantage of people who are not educated about their money.

Deirdre · 10-13-2007

By consolidating he will be combining all his outgoings i.e. Mortgage, loans, credit cards into one easy payment. Most companies can arrange it that you pay out less per month by combining all your outgoings than you would be paying now. This is true, however it takes longer to clear the debt.

If your brother had a mortgage, a credit card and a loan the companies can reduce his payments per month by $400 per month however he has to take them all out for the same time as the mortgage which is usually around 30 years, this is why the payments are lower.

He could clear his loans and credit cards in a shorter time frame but if he is in debt and needs to clear his loans and credit cards this is the ideal thing to do however he should get rid of the cards completely after they have been paid off.

matty · 11-06-2007

It is always better to clear the loans on time as it will help you to pay on low interest and you don't have to face penalty and high interest options to clear dues

05-06-2007	#1 (permalink)
Migga Member Join Date: May 2007 Posts: 40 Rep Power: 0	Debt consolidation I know that these debt consolidation firms try to help by cutting back the interest for credit card payments but do they really actually work? My brother is trying one of these services out and I'm not sure he should do this. Any thoughts on the subject?

05-27-2007	#3 (permalink)
Laettner14 Senior Member Join Date: May 2007 Posts: 110 Rep Power: 1	You don't even need to write letters. Just call your creditor, tell them you may have to file bankruptcy if they don't work with you, and you will be amazed at how quickly they lower your interest rate and work out a repayment plan with you. You should never pay a fee for this or entrust it to someone else, as it is your finances. __________________ http://cancertopics.net/ The Best Natural Cancer Treatments http://meteorfreaks.com/ News of the weird and just plain stupid

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05-08-2007	#2 (permalink)
grated4life Junior Member Join Date: May 2007 Posts: 21 Rep Power: 0	What i don't understand is the need for a company's service like this. they are doing nothing more than joe schmoe the consumer can't do. Write some letters, beg for leniency and ask for a lower rate. So what makes them so miraculous?

07-18-2007	#4 (permalink)
Colecash Junior Member Join Date: Jul 2007 Location: Indiana Posts: 20 Rep Power: 0	If the people who resorted to these services were responsible enough to consolidate their debt themselves they probably wouldn't be in position to need the service in the first place. Some are legitimate but most are taking advantage of people who are not educated about their money.

10-13-2007	#5 (permalink)
Deirdre Member Join Date: Oct 2007 Location: Ireland Posts: 46 Rep Power: 0	By consolidating he will be combining all his outgoings i.e. Mortgage, loans, credit cards into one easy payment. Most companies can arrange it that you pay out less per month by combining all your outgoings than you would be paying now. This is true, however it takes longer to clear the debt. If your brother had a mortgage, a credit card and a loan the companies can reduce his payments per month by $400 per month however he has to take them all out for the same time as the mortgage which is usually around 30 years, this is why the payments are lower. He could clear his loans and credit cards in a shorter time frame but if he is in debt and needs to clear his loans and credit cards this is the ideal thing to do however he should get rid of the cards completely after they have been paid off.

11-06-2007	#6 (permalink)
matty Member Join Date: Nov 2007 Posts: 49 Rep Power: 0	It is always better to clear the loans on time as it will help you to pay on low interest and you don't have to face penalty and high interest options to clear dues

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