Debt Consolidation -- Do these places really work?

[Mr. Goodbytes]

I feel your pain Gouki. Beginning to think that CCC is the way to go for me too. I have saved up here and there and made significant headway. I got one credit card completely paid off by just saving up enough to pay half the balance all at once, and they accepted that as half being better than none, and cleared my debt with them entirely.

[discreet]

I tried debtfree. They charge a minimal fee for their service, my monthly payment was $100 including their $25 charge. But after a couple months I decided to get out of it because they didnt lower my payment by that much, if you use them the up side is that half of whatever your paying to the CC companys are not going towards interest. I figured I could get rid of the debt so I just settled on an amount with my mastercards.

[Skywalker[TSG]]

I owed Amex $2200 not that long ago.

Gave them a call and said "I have $1000 take it or leave it"

and they accepted

[Toddly]

I have been told that people call the credit card companies and have been able to negotiate lower rates because of financial problems. It is worth considering and is only a phone call. Others focus on paying the cards with the hightest interest first, and then move on to the next highest and so on down the line. I would urge you not to declare bankruptcy unless absolutely the last resort.

[vass0922]

Ya I tried with my Master Card to lower interest rates... they said nope!

[Hey-Todd]

Same here, vass. I asked them to lower my interest rate and they said no... so I called Colsolidated Credit Counseling Services and let them negotiate for me and now my interest rates are lower.

[Tomteriffic]

Gouki,

What vass said. There are a bazillion ripoff organizations around and the only two I know of that aren't are CCC and debtfree, and of the two, CCC is the most helpful overall.

Trust me, do it now and get the process going. The alternatives (riposs organizations, bankruptcy, etc.) can screw you up for years. Like it or not, your life in front of you is very largely governed by your credit rating. It can affect your insurance rates and all kinds of stuff.

Tom (who learned the hard way)

[Toddly]

Originally posted by vass0922
Ya I tried with my Master Card to lower interest rates... they said nope!

Tell them you want cancel your account and are going with another card and see what they say. If you are like me you get a number of offers in the mail for transfer of accounts when opening a new card. Some of those rates are pretty good but be sure to read the fine print.

[vass0922]

btw, out of curiosity does going to the CCCS effect your credit rating? I was wondering if there's a sign on there "Credit Counselling Involved" or something on the credit rating after signing up.

[Chuckiechan]

I would start by calling the companies and getting them to waive the yearly charge if they won't cut the interest rate. Mastercharge dropped mine to % 12.5 (Was %19.5) when I asked the phone drone if she could spell "Citybank"? Went to talk to her supervisor, I got my rate and no yearly fee!

Next, I would look for cards to transfer the balance to the are low interest no fee. You can keep rolling balances along forever! Set a payment amount for yourself that you can live with and cut up the card any pay it off. Give them your tax refund if you have to.

Cut up all cards as you pay them off.

When you are cleaned up, get either a Mastercharge or a Visa. You only need one credit card now a days. If someone won't take it, go somewhere else. But only have ONE card, that way (if you are married) both of you are looking at the same bill.