Aug
8
should I consolidate my credit cards debt with a debt management company ? what do you think? ?
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4 Responses to “should I consolidate my credit cards debt with a debt management company ? what do you think? ?”
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Ramon
no man./
Ronald
It is if you aren’t able to pay any other way.
Consumer Credit Counseling is the best one.
You will still have a SLOW PAY credit History.
If you can pay that without any trouble, do, otherwise, time to File Bankruptcy. Did it..done it.. never looked back…
Wesley
If you go with a debt management company, make sure they are a member of NFCC. You can find one in your area here: . These are legit, non-profit credit counseling companies that offer debt management programs for a nominal fee. They negotiate lower interest and payments so that you can pay off your debt.
Normally they don’t close all your accounts, however, you can’t use them while in the program. Your credit report will indicate you are in a debt management program, but when you complete the program, that notation will be removed and you will have a good payment history and decent credit.
There are for-profit debt management companies out there and you really want to avoid them. They charge high fees and some are actual scams. Check out the company very carefully before you sign up.
Greyson
This is not a good deal. Reducing your payments will not save you anymore at all, infact, often times you will end up paying more in the long run.
The only way a debt consolidation loan is a good idea is if you get a lower interest rate, but continue to make high monthly payments, so more money is going towards principal rather tha towards interest. This is the only way to pay off more of your debts…applying more money towards the principal.
If you don’t go the route of the consolication loan, make extra payments on the smallest debt only…make as big of a paymnet as possible on this one, while maintaining the other minumum payments. When that debt is paid off, move that entire payment amount onto the next smallest debt. COntinue doing this until it’s gone. Again, the key is to make sure the monthly payments stay high, you’re just transfering the payments from one to another as they get paid off. This is the “Debt snowball” strategy that most debt management companies recommend and is also promoted by people like DAve Ramsey, and Richard Kiyosaki.