Bill Consolidation?

Question : Bill Consolidation?
I am about $ 13,000 in debt. I spoke with this company that says they can cut my bills in half by having them settled and make one low monthly payment. Until know I have been paying little by little and not getting very far. Has anyopne used a similar program and is it worth it or will it make things worse?
bill consolidation

Best answer:

Answer by magicbusgone
go to consumer credit counseling service. You can pay your bills down.

When you go into a store and pick something up, ask yourself if you are going to need that thing a week from now. Then put it down.

Stay out of stores!

bill consolidation

This entry was posted by admin on August 31, 2010 at 10:19 pm, and is filed under Credit. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (6)
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#1 written by Johnny B 1 year ago

I haven’t used those services, but I did find something to help me reduce payments and lower my interest rates: Prosper.com

Prosper allowed me to borrow enough money to pay off my high interest rate credit cards and take out a low interest loan. Now I’m getting it paid off way faster than I thought I would have.

Try it out here: http://www.prosper.com/public/groups/group_home.aspx?group_short_name=creditwars

http://prosperloans.blogspot.com

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#2 written by ken_voss12345 1 year ago

By using services from a debt relief organization you will stop receiving phone calls asking you for money. You will pay a fixed rate amount every month which will never go up. You won’t be dealing with your creditors any more. The “debt relief people” will be paying your bills for you, and your credit card company is out.
You then pay the debt relief company.
lots more here:
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
http://credit-cards.ebookorama.com
good luck!

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#3 written by tri_florida 1 year ago

If you own a home don’t consider refinancing. You are converting short term debt to long term debt and you will be paying on the stuff you bought long after it is gone. Typically a person who consolidates their debt just ends up spending again and further in debt than when they started (the lesson wasn’t learned about reduced spending). Try paying off one bill at a time (higher interest first) and maybe some smaller bills (instant gratification). Debt reduction is not easy. It’s like losing weight. Its harder to take off then it was to put on . Good luck.

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#4 written by Beth 1 year ago

If you own a home and have paid your mortgage on time for at least 1 year (12 months) you might want to consider refinancing and paying off your debt. Your mortgage payment will increase, but your debts paid off. As a mortgage broker in Florida I know that the vast majority of lenders/banks frown on consumer credit counseling (CCC), it’s a strong indication that you don’t manage your money/debt very well, which makes you a higher risk for default on any loan, as well as paying higher interest rates. Going into CCC will be reported to the credit bureau’s and may have a negative impact on your credit report. Why don’t you contact your creditors yourself and negotiate your own settlement amount? Hope this is helpful.

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#5 written by butterflyindisguise 1 year ago

There is a program called Oprah’s Debt Diet. Go to her website and read up on it. Even if you don’t follow it you will learn a little about the strategy of paying down debt. If that is one of those programs that close your account then you don’t have a valid card anymore, therefore no credit. I don’t think it’s ever a good idea to close cards, but that’s my opinion. You need to have credit open to qualify for more credit. Good luck in your quest and it really isn’t as bad as it looks. Just set your mind to get rid of it and it will happen!

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#6 written by Mariposa 1 year ago

They usually make things worse. Check with the Better Business Bureau to see if any claims have been filed. When they settle your debts, your debts will show as settled instead of paid, which is more negative than paid. Also, many consolidating companies pocket the first month you pay as a fee, which means your payment does not go to your creditors and is shows as late, making things worse. Also, what percent are they paying things? Are they paying down your debt ratio or paying everything across the board?

You would be better going to a credit counselor or managing it yourself.

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