Are there any debt consolidation companies ... - Finance Talking Hub
I want to work with a debt consolidation company that pays off the debt on your credit report quickly and have you pay them monthly. I do not want a consolidation company that only pays the collectors as you pay them.
There is no such animal.
Debt consolidation companies work this way: you agree to pay them a certain amount each month.
The debt consolidation company splits the amount among your creditors.
The debt consolidation company receives a commission of 10 to 15% of your payment from the creditors.
Your creditors are under no obligation to accept this arrangement from the debt consolidation company. Participation is voluntary.
Your creditors can refuse to work with the debt consolidation company. They can opt to continue to collect from you and subsequently take you to court.
They will only pay your creditors when enough money has been paid in by you to settle debts. They take their fees first. Debt consolidation is a risky move to take?be careful
Stay away from any "debt consolidation" company that promises to cut your debt and payments in half through debt settlement?.this is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. you pay a monthly fee to a debt consolidator?.this entire fee goes towards building a settlement account and to the consolidator's fees to ?settle? your accounts in the future. your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances?you can never predict how your creditors will respond to the deliberate defaulting of your accounts?they might settle at 50%?or they might serve you a summons, take you to court?and if they win, you could be looking at wage garnishment.
Many people who sign up with ?debt consolidation? firms incorrectly assume that they have the power to force your creditors to accept settlements?they don?t. your creditors have the right to refuse settlements and take you to court.
Listen to CatDad and Infinit ? there really isn't such an Animal as you describe.
I am busy reporting the "Nigerian fake loan" spammer?.
You want a consolidation loan ? you take out a big loan that pays off all your debt and then you make payments on that loan. this will only work if you are disciplined enough to not run the credit cards back up.
It also depends on whether your credit is good enough for a unsecured loan large enough to pay off the other debts. It it harder to get large unsecured personal loans. you have to have good credit to qualify.
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