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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » Is this a good debt consolidation plan?

Is this a good debt consolidation plan?

I have about 4500 in CC Debt, spread over 6 accounts. The average APR is 25%.

I got the following offer from a Debt Consolidation company: 167/month for 41 months [It includes their $47/month fee].

There are no additional fees and I can cancel / pay off at anytime with no penalties.

Just wanted to get some opinions whether I should go ahead with this.

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5 Responses to "Is this a good debt consolidation plan?"

  1. Vote Republican in 2010 save USA says:
    Absolutely NOT.

    Debt Consolidation is bad for your credit & is not necessary. Simply do a Debt Snowball.

    1. Pay the minimums on all the cards except the smallest (don’t worry about which interest rate is higher). On the smallest one pay as much money as you can find on it…until it is all gone (while paying the minimums on the others).

    2. Then proceed to the next smallest one.

    Improves your credit & makes you a responsible adult.

  2. MVD34 says:
    Are you kidding me? They are ripping you off, big time.

    At $167 per month and 25% interest annually you should be able to pay off $4500 in 27 months.

    What are the “extra” 14 months for? They are tying to bleeping skin you alive.

    Run the number for yourself, below. You don’t need a debt consolidator. Go scan a couple of books by Dave Ramsey in your local library.

  3. My Take on It says:
    If you do that, you deserve to be ripped off.
  4. TheWebGuy says:
    Here is a little article to explain how credit counseling will affect your credit report

    http://www.anewhorizon.org/How_will_Credit_Counseling_Affect_my_Report.asp

    FYI I went through a debt consolidation program and was 52K in debt and was out of debt in 4 yrs. So it does work….

  5. Hector says:
    How can debt consolidation be bad for your credit if you are going to be;

    1.- Paying on time your new monthly payment, 167 timely payments, yes probably that hurt you credit !!??

    2.- You are paying all your debts, meaning you are not defaulting, again ¿¿??

    While there is a hit at the very beggining in your scores, this in the short time is overcomed, fixed and really improved.

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