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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » How does debt consolidation work, and is it worth it?

How does debt consolidation work, and is it worth it?

Im trying to clean up all my past debt before it gets out of control, and I want to know if this is a good idea


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5 Responses to "How does debt consolidation work, and is it worth it?"

  1. Chris L says:
    I’ve did the debt consolidation many years ago and I also went to a Credit Counseling Service about 10 years ago. I’d recommend the Credit Counseling Service due to the fact that some are non-profit, requiring only a small monthly fee for their services, but chose wisely. They’ll work with your creditors and add up all your debts into one total and disperse your monthly payment to each creditor. You’ll agree to send the Credit Counseling service a set monthly amount until all your creditors are paid off. Most times, they’ll be able to negotiate a lower interest rate or none at all for credit cards and others because, above all, the creditors had rather have some money than none at all.

    The Credit Counseling Service we went to saved me YEARS, not to mention money, in getting them all paid off. What would’ve taken me 15 years, took only a little over 3 and saved me from having my credit in total shreds.

    The key is not to continue to accumulate debt while using the Credit Counseling Service. You’ll need to tighten the purse strings and be frugal for a few years. Instead of saying “No” to a purchase, say “No, not right now”. When you’re free of debt you’ll be happy you went this route. Your credit score will be much better and you’ll have a better understanding of how to keep yourself from falling into the debt trap again. It’ll take some willpower and restraint on your part but if I can do it, anyone can. Just be sure to sign on with the most reputable service you can find. Mine was Arkansas Credit Counseling but you should be able to find one in your area that you can work with.

    Good Luck.

  2. bdancer222 says:
    Most debt relief/consolidation companies take their fees up front and trash your credit. There are a lot of scam companies making promises they can’t keep.

    If ;you need help dealing with your debt, check this site: . This is Consumer Credit Counseling Services (CCCS), a legit, non-profit company offering free credit counseling. They also have debt management program available, if you qualify, fo no fee.

    They can look at your financial situation and advise you how to proceed.

  3. Nicki W says:
    They charge you 15% of the total debt and usually get you out for about 50%. You save money in an account instead of paying the creditors then pay them when settlements are reached. The free evaluation form at could be the first step in you getting out of debt.
  4. burt says:
    A small loan consolidation with low interest is the best I found interesting information about your answer & options here. luck!
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