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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » Looking for a scam-free debt consolidation company?

Looking for a scam-free debt consolidation company?

I am trying to hunt down a well trusted debt collection consolidation company. The type where they run all 3 of your credit scores to see who you owe, & consolidate it into one lump sum for an afforable monthly payment. I have heard of many of them being scams, people “paying off their debt” and not actually paying it just paying the company money that supposedly consolidated it. Which in case sickens me that people can sleep at night knowing they screw over all of their customers. Anyways, if anyone knows of a real, scam free debt consildation service it would be much appreciated.

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6 Responses to "Looking for a scam-free debt consolidation company?"

  1. knowitall says:
    Go to http://www.NFCC.org. Do not use any that are not in this – others are scams.
  2. Jane says:
    go to your bank, they can offer loans for this, mine did.
  3. CatDad says:
    In recent years the term “debt consolidation” has come to mean “debt settlement” rather than an actual consolidation loan.

    Stay away from any “debt consolidation” company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

    None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.

    http://online.wsj.com/article/SB122394458494631223.html
    ===============
    Another option is to enter into a Debt Management Plan. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). In general, CCCS can negotiate your interest rate down to just under 10% and your monthly payment to around 2% of your total outstanding balance. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…

    While an accredited credit counseling program like CCCS can be good you need to be aware that these programs are funded by the credit card industry and this can create an obvious conflict of interest in the advise they give you. Such organizations will often tell people to not file for bankruptcy when they really should. As a general guide, if the reduced payment terms negotiated by a credit counseling firm will simply not work for you, then you should consider filing for Chapter 7. Also, if you are more then 3 months behind on your cards, you should attempt to negotiate direct settlements with your creditors like 50%. If you have completely defaulted on your cards, then you absolutely should try to make direct settlements rather than using any credit counseling program. Be sure to get all terms in writing…never accept verbal promises about settlements over the phone that are not backed up in writing…never give creditors/debt collectors direct access to your checking account.

  4. Tony says:
    Before you make any final decisions on any company, you should read the free e-book called Great Credit for a Lifetime. You can find it at:

    http://debtfree.com/downloads/eBook.pdf

    This book outlines in detail how most debt-relief services work and how you can be sure you start off on the right track.

  5. Zoe S says:
    Debt consolidation can be a great way to start tackling your debt – whether it’s just lowering your rates, getting a better loan, or cutting your payments to get debt free faster. Debt consolidation loans consolidates multiple lines into one new loan or debt consolidation program – it typically involves a debt consolidation loan, but could also be referred to as a credit counseling program or other forms of debt resolution that do not involve a new loan. It is important that you know what your options are and what your goals are before choosing a debt consolidation program or company.

    Debt consolidation is a solution to stopping your debt from spiraling out of control. Debt consolidation doesn’t reduce your debt; it merely eliminates multiple high interest rates associated with debt from various lenders. A debt consolidation loan is one viable solution to consolidating your debt. In this situation, you basically get a loan to pay off all your various debt or get a better type of loan (changing from an ARM to a Fixed rate loan).

    It is better to seek help from any reputed debt relief company to choose the right option matching your financial health. I took help of Bills.Com to consolidate my debts. I have joined their debt relief program one year back and now I am almost debt free.

  6. Night Crawler says:
    I actually had a service keep and eye out for a consolidation service for me. The one service that kept showing up with the highest conversion rate was http://www.generate-solutions.biz/provider/show-offers/344 . They follow several different companies and I think that is a direct link but let me look in my email to be sure. Yes, that should get you there. I wish I could tell you more but I won’t talk to them until tomorrow and get mine started. I am very pleased with what learned through the emails with my agent. Much more knowledgeable than any other company I have talked to. Good luck.

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