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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » Has anyone had any success using a debt consolidation program? If so, which one?

Has anyone had any success using a debt consolidation program? If so, which one?

I am about $55,000 in debt due to school loans and credit cards. I am looking to consolidate my payments because I have multiple lenders as well as credit cards. Has anyone used a debt consolidation service and it has not been a total rip-off? I don’t even know how it works to consolidate debt. Any advice and referrals to reputable services is much appreciated.

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5 Responses to "Has anyone had any success using a debt consolidation program? If so, which one?"

  1. My Take on It says:
    You will not find a legitimate debt consolidation company
    They will take your money and leave you worse off than you were before.
    Go to http://www.nfcc.org to get free credit counseling. Not sure if they can help with the student loans, as those are a whole different ball of wax.
  2. Backhoe says:
    debt consolidation companys will make u worse off than before.
  3. randy e says:
    My take on it, hit the nail, right on the head. That person is 100% correct. You can also contact your local united way, as they also offer free credit counseling.
  4. Kevin F says:
    It will depend on how much is actually student loan debt to determine if it would be worthwhile to use a debt managment program. If the student loans are less than 1/2, it would likely be a good way to lower your monthly payments and be debt free in 3 years.
  5. victor c says:
    If most of the $55k debt is on your student loan, debt consolidation through a credit counseling program or any debt management plan won’t help since they only deal with “unsecured” debt. So you’d be better off refinancing your student loan(s).

    Secondly, if a considerable amount of your debt is unsecured, being that you owe so much, a debt consolidation program may be a band-aid treatment. Although it’s not a rip off, it can only reduce your interest, not your principal debt. Because of this, the dropout rate in credit counseling debt consolidation programs is notoriously high.

    If you experienced a severe financial hardship, you may need a solution that’s much more aggressive than debt consolidation, such a a debt settlement program. Typically, the overall benefit of a debt settlement is a credit card debt reduction of 50 percent. Although the debt settlement letters at the Debt Free League website at http://debtfreeleague.com/ illustrate much greater debt reductions.

    If you do debt consolidation via a credit counseling program, expect to repay about 150 percent of your original debt. Bear in mind that you’d only be reducing some of your interest rate through debt consolidation. This debt elimination approach is only advisable if you need to lower your interest rates. Otherwise, you may be far better off trying out a debt settlement program like the National Debt Relief Stimulus Plan. You can get a non-obligation financial consultation by calling 800 213 9968.

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