Comments on: are credit card consolidation companys a scam?

By: curiositycat

curiositycat — Tue, 19 May 2009 12:37:40 +0000

Some are. Some aren't. Check the reputation of the company and their track record-how many times have they changed hands or been sold-how many complaints have they received from the BBB-do they make payments on time to creditors-do they have a good reputation in the community-do they charge a lot upfront, or is it reasonable? Find one close to where you live and not in another state, so if there are problems, they are easier to follow up on.

By: KupidGuy

KupidGuy — Tue, 19 May 2009 12:37:40 +0000

Most are, some aren't.

By: St Guido

St Guido — Tue, 19 May 2009 12:37:40 +0000

no. check the BBB on any company you wish to do business with

By: smartypants909

smartypants909 — Tue, 19 May 2009 12:37:40 +0000

Some are, and its hard to tell them apart. Its better if you contact each of your creditors and negotiate a payoff with them yourself. Some companies will tell you that they don't do that, but if you are ready to pay them off, they might work with you.

By: proud nana m

proud nana m — Tue, 19 May 2009 12:37:40 +0000

You are better off to go to your bank and get a consolidation loan.

By: baby gyrl

baby gyrl — Tue, 19 May 2009 12:37:40 +0000

I currently work for a consolidation company and we make sure we reassure all of our clients that we're registered with the Better Business Bureau. It's never a bad idea to ask them once you get them on the phone though just to reassure yourself…and do a little research on the company first.

By: williegod

williegod — Tue, 19 May 2009 12:37:40 +0000

Most aren't but they are not necessarily a solution unless you have enough self control to get rid of your cards once you consolidate. They are lending companies who'll loan you enough to pay off your credit card debt at a lower rate but you'll still owe the money.

By: baltimgirl

baltimgirl — Tue, 19 May 2009 12:37:40 +0000

In a manor of speaking… you can negotiate the same terms and lower APR's that CCC companies can. It's hard to find one these day's that will assist you without a fee. Thing is if you use a CCC to pay off your debt this actually looks bad to the 3 credit report agencies instead of you doing it yourself. So be carefull before you decide to use a CCC because it actually works against you even if your trying to do a good thing like get out of debt.. it is still reported.

By: rlc_60504

rlc_60504 — Tue, 19 May 2009 12:37:40 +0000

Getting a consolidation loan doesn't require a special company. You can go down to your local band and get a consolidation loan.

What you need to be aware of is that consolidation loans are not reducing your debt. They are just spreading it out more so it will take you longer to pay it off. If you are trying to reduce montly payments and just can't scrape together enough to make the current monthly payments, then it might help you. I'd strongly advise trying to find another way and just work on paying you debt down.

Make a list of all of your debts and the percentage rates associated with each loan. Put these in order not by the balances you own or by the monthly amount….but by the percentage rate. Highest rate goes first. Put any extra money that you might have towards paying down the highest interest loan first. Then, when it is completely paid off, move on to the 2nd highest rate.

Good luck.

By: Ralph H

Ralph H — Tue, 19 May 2009 12:37:40 +0000

Hi
In my opinion Credit Card consolidation companies are a rip off because what they do you can do yourself with some effort on your part.
If you have stopped paying on the cards then refuse to talk to them and regardless of what they threaten, at some point they will negotiate for a far lower balance then what you owe.
The consolidation companies do the same thing, they just negotiate on your behalf for that large fee ofcourse