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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » Is this the way that a debt consolidation company works? They reduce the amount?

Is this the way that a debt consolidation company works? They reduce the amount?

What is a good debt consolidation company that will negotiate what you owe by negotiating with the creditor, and then you owe less than before to each creditor, but you owe them for one big new loan , to them for paying your debts?

So they are getting your debts down by negotiating and then give you a consolidation loan to cover the amount owed to them now?

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2 Responses to "Is this the way that a debt consolidation company works? They reduce the amount?"

  1. mrpaul says:
    go to http://www.payplan.co.uk
    or citizens advice
    i would never pay a company to negotiate my debts. if a company is doing this for you there will be a charge (thats why its registered as a company rather than a charity) for the service nothing ever comes for free.
  2. Jeff says:
    Basically, that’s how it works.

    Debt Consolidation promises to reduce your payments into one check.

    But they don’t tell you that the one check is often just as big as all the little payments put together.

    Plus, if they negotiate to reduce your debt, your credit is trashed just as if you filed Chapter 13 Bankruptcy.

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