Hey guys and gals,
Was wondering if anyone here has had any experience with any debt consolidation companies?
I, unfortunately have a mountain of debt. I am in good standing with the card companies and pay my bills on time. But I am looking into trying to consolidate them all into one bill with hopefully a lower interest rate.
I have read and heard that some of these advertised are scams. I don't believe anyone can erase debt but looking for some honest professional help in becoming debt free. Any suggestions would be greatly appreciated. Thank you in advance.
Joey

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1985 Mercedes Benz 300SD, TMU
2015 Chrysler 200S

Whats wrong with a bank?

X2, most of those companies are scams that will affect your credit in a away you dont want.

don't do this. this is a scam.

instead, read a book. i recommend:

Dave Ramsey or Jean Chatzsky (sp?)...

either one will give you a better value and neither will leave you feeling stupid afterwards.

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Ben
1987 190d 2.5Turbo

x2 on the Ramsey - there's your professional help, read his book, follow his radio show, make him a god.

If they operate in your state, I'd go have a talk with Wells Fargo. They seem a lot friendlier to young people and above average risk situations, unless you've got charge-offs and/or repos - which you say you don't. W-Fargo can be pretty forgiving about your lack of equity positions if they think you've got a secure job. I'd be looking at any thing I can collatoralize, car titles, coin collections, any thing, and have it ready to present to them - they like to see some collateral. They have been one of the big winners in the current downturn, they've certainly got the cash. You don't say how old you are, but WF likes to work with young people because they think a mortgage and steady car loans will be in it for them in the long haul if they can get you straight.

Thank you for everyone's quick replies.
I forgot to mention a few things. I am 31 and married. I own a townhouse currently that I rent out. I tried to sell it before I got married (a lil over 2 years ago) but that didn't work out. I was hoping at the time that I would have enough profit left over to pay the debts and also have another down payment for a new house. Due to my wife's job and location we moved close to D.C.
So anyway, I am not sure if a home equity loan is feasable right now due to the downturn in real estate. But I have thought about this route as well.
But by the looks of it, I am paying less in interest CC companies than I would to a bank through a home equity loan. My mortgage company has a rate of 8.5 to 12.5%. My CC's interest rates range from 7 to 10%.
Keep the replies coming! I really appreciate everyones opinion.

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1985 Mercedes Benz 300SD, TMU
2015 Chrysler 200S

just do the dave ramsey debt snowball. itll be paid off in no time. i tried to tell my friend this and he chose debt consolidation instead and he got ripped off big time.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

Yeah, they are a scam. You should seriously consider bankruptcy, if that would be appropriate. In some situations it is the best way forward. Basically you need to have a plan to rebuild your credit afterward. So you need a budget (and income) that adds up right.

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1998 C230 330,000 miles (currently dead of second failed EIS, yours will fail too, turning you into the dealer's personal human cash machine)
1988 F150 144,000 miles (leaks all the colors of the rainbow)
Previous stars: 1981 Brava 210,000 miles, 1978 128 150,000 miles, 1977 B200 Van 175,000 miles, 1972 Vega (great, if rusty, car), 1972 Celica, 1986.5 Supra

Also, when we looked at this many years ago, the consolidation has almost the same effect on your credit as a bankruptcy. And like 80% end up worse than they start.
Talk to your debtors and see if they will lower. Some will some will not.

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83 300SD Dark Silver Dark brown inside

I agree, the best way out of debt it to just pay it off as quickly as possible. Make a budget based on the minimum that you can live on, and put as much as possible towards your debt every month. The sooner you start, the sooner you will be done. There is no "easy" way to do this.

When you are serious, make a decision to stop borrowing money (with the exception of a house that you can really afford). I refuse to borrow any money or use credit cards (I use debit cards to access my bank accounts). When you pay off your debt, start saving as much as practical every month. The best way to avoid debt is to have some cash in reserve to cover unexpected expenses.

Your HELOC rates are 8.5%-12.5%? Your fico must be lower.

HELOC's should be cheap like 4% or less.

Their is only really two ways to get out of this debt.

1. Depending on how much it is you can simply default and try to settle it for less. Naturaly this has repercussions to your credit score and possible legal ones as well. But people do it all the time.

2. Write up a budget and pay it off, thats really the only solution. If you can work OT or get another part time job to throw more money at it even better.

Either way you should cut up all your CC's, just leave one for emergancys.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Best to negotiate with your debtors as politely as possible.. Debt consolidation is a scam. You'll pay most of what you perceive to save to them as their fees and it does effect your credit rating. My sister has been in banking for 23 years now. Her former employer will NOT do any type of mortgage or business loan with you if you've EVER filed bankruptcy. No matter that it was 10-15 years ago and you're credit is good now.. They will not give you one of those loans PERIOD.. Try balance transfers to low rate cards.. If you have more than 1 credit card, try to get them all balance-transferred to a single low rate card. She does that all the time. 3.99% for one year then it jacks up ? Fine.. She just transfers it to another low rate card if she still has a high balance.

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Sharing my partner's 2012 Forte 5dr SX til I find my next 123 or 126..
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Do I miss being a service advisor ???

I certainly could understand not being able to get a loan after filing for bankruptcy. I would never consider filing for bankruptcy. I have transfered balances as well to lower interest cards in the past. I am fortunate to say that I don't have to rely on credit cards anymore nor do I carry a credit card with me. I wish there was a way I could get my creditors to lower their interest rates to pay off the debt quicker. But I pay as much as I can(more than the minimum) each month. Oh well, you live and you learn!

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1985 Mercedes Benz 300SD, TMU
2015 Chrysler 200S

I'm kinda interested in this one too. I have a friend who has medical, car, and other misc bills out there. No CC bills and not earning that much with no home ownership. Any way to consolidate the bills. I advised her against filing bankruptcy for $20K debt as I understand it.

AFAIK, bankruptcy hurts both your credit score, employment opportunities and maybe even your insurance. Anyone know that for sure?

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01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

Sounds like you're top-heavy with unpaid for real estate. My advice, rent for a while - get rid of the real estate that has become burdensome. My first property I paid 50% down - so there was no chance of it ever becoming a burden. Yeah, renting sux, I rented for 13 years in my 20s - early 30s, but it let me save up a mountain of cash/stocks, that eventually took on critical mass. Do I live in an outstanding home? Not really, but it's twice the size I actually need to be comfortable - and am looking to make a lateral move out in the boonies with some acreage. Debt is an immovable object unless you take drastic steps to get out of it. Just don't borrow any more and you're half way there.

Dave Ramsey recommends saving 15% of what you earn, after getting out-of-debt. I recommend saving 100% of whatever is left over each pay period. 'Cause that's what worked for me. Believe me, you'll get ahead a lot faster that way. This is provided you have extra to save/invest after bare necessities. Best of luck to you.