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Debt Relief – Insolvency – Bankruptcy Information » Credit Card Consolidation » Do credit card consolidation programs really help & how do they work ?

Do credit card consolidation programs really help & how do they work ?

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3 Responses to "Do credit card consolidation programs really help & how do they work ?"

  1. Dr Owl says:
    You borrow even more money, often at appalling interest rates. You then pay off all your different debts, but owe an even greater sum to a company that will keep you enslaved to them for often 60 months or more and make profit from what they’ve got you to do.
  2. rayvin65 says:
    They negotiate with the credit card company for a lower rate but you have to pay the monthly fee which will include the fee from the consolidation company. I think it hurts your credit too.
  3. Steve B says:
    In UK, TYPICALLY your unsecured credit card debt is converted into a charge on your house (‘second mortgage’) at less than the Credit Card rates but much higher than ‘normal’ Mortgage rates. Further, a multi-thousand ££££ fee is often added to the new ‘loan’ to cover the charges of the ‘adviser’ (hence they can boast ‘no up front fees’)….

    This usually ends up costing you your house as the credit debt is ‘cleared’ so there is nothing to stop you carry on borrowing and running up even more debt you can’t afford …

    Other arrangements (DRO’s, IVA’s) usually involve some degree of ‘default’ (so your Credit Rating is trashed) but are better than Bankruptcy and will allow you to pay it off at a rate you can afford without allowing you to borrow much more (or at least not very easily).

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