Consolidating debt through credit counseling services to consumers? I have about $ 2,000 in credit card debt that I absolutely need to get paid down. I talked to service consumer credit counseling, debt consolidation company, http://www.cccsstl.org/ and it tells me:
Basically, they cut my payments to approximately $ 130 per month for a total of 3 cards to get my interest rate reduced to between 6 and 10%. I pay in 2 years instead of 8 as I would now without consolidating. He said that $ 130 per month including the payment of monthly fees of $ 49 directly to the credit counseling service for their help and services. Is this the normal thing in the consolidation? Is legitamet? I would only pay $ 80 or so a month on credit card debt real and it does not seem much to me.
Anyone have any knowledge in this area? Is consolidation a smart thing to do and does it affect your credit in any way? Is there a smarter way to do?
LONG sorry and thank you!
Do not touch! Instead of going www.daveramsey.com
It is a financial giant. excellent advice there. Read Financial Peace, Total Money Makeover by Dave Ramsey time.
You can visit http://www.cashguru.info and find useful tips and several articles on debt consolidation. Report Abuse
Run as fast as you can away from credit counseling '. " This is a business and they are there to make money not save you money. You can do exactly the same thing they can do for you and you can ask for the money they charge you to reduce your debt.
My suggestion is to cut all your credit cards except for emergencies. Call the people who owe you money and see if their credit manager will help you in lowering interest rates or waive certain charges. If this does not work and you can enjoy a zero rate or reduced rate credit card then yes, go ahead and consolidate. But - do not keep this card. carving. Only use it for your outstanding debt. Cancel all other cards.
Seek help from a friend or family member to be your mentor to get you out of debt. Use them as a partner AA. Whenever you feel the need to "charge" call that friend and talk about the purchase you feel you need to do. Speaking more he will give you time to realize that you probably do not need those new shoes or whatever. Get a part-time job and use the income from that employment for payments debt reduction.
Alternatives: If you own a home, you can consult a mortgage. The interest is generally tax deductible. You can ask a parent or grandparent of a loan, but make sure you give them a note and repay it quickly if they give you a loan. Consolidation most banks do not offer "ready - and if they interest rate will be close to credit card so it is not so advantageous.
$ 2,000.00 is not a small amount but it is doable. Good for you to recognize that you need to repay this debt. It is a painful process, but you can do it!
Posted on March 5, 2010.
