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It is currently Sat May 25, 2013 12:35 pm




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 Post subject: Debt Consoldiation
PostPosted: Mon Apr 29, 2013 3:42 pm 

Joined: Fri Apr 26, 2013 10:44 pm
Posts: 2
Does anyone have any experience dealing with a debt consolidation company? I'm over my head in debt and can barely make my minimum payments since I had to take a job making less than 50% of what I was making.


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 Post subject: Re: Debt Consoldiation
PostPosted: Mon Apr 29, 2013 6:31 pm 

Joined: Mon Nov 01, 2010 5:15 pm
Posts: 962
Paganwilly wrote:
Does anyone have any experience dealing with a debt consolidation company? I'm over my head in debt and can barely make my minimum payments since I had to take a job making less than 50% of what I was making.

I haven't had the pleasure but don't do it. Most are very shady. Try credit counseling instead.


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 Post subject: Re: Debt Consoldiation
PostPosted: Mon Apr 29, 2013 7:15 pm 

Joined: Tue Mar 11, 2008 12:19 pm
Posts: 1505
Location: Ottawa, Canada
Here's how 99% of them work.

1) You sign up with them.
2) They contact your creditors and tell them all that they must now deal with them instead of you directly. The phone calls stop.
3) You pay the credit consolidation company a monthly payment instead of paying multiple different payments to all your creditors. This monthly payment is usually substantially less than the sum of all your other monthly payments.
4) The credit consolidation company collects your monthly payments and sits on them, making no payments at all to any of your creditors.

Here's where it gets potentially shady. If your credit consolidation company is legit, then:

5) The credit consolidation company calls up your creditors (who haven't been paid a dime in months/years) one-by-one and offers them settlement deals for pennies on the dollar. They take the deal and trash your credit.

If your credit consolidation company is a scam, then:

5) The credit consolidation company closes up shop and disappears with your year-and-a-half worth of payments, never having paid a dime to any of your creditors, then re-opens under a new name and pretends they've never heard of you.
6) Since your "representative" is now gone, your creditors all start calling you again, demanding money. Since they haven't received any payments in months/years, the balances have all grown obscenely. You claim you've been making monthly payments, but they're unsympathetic. Those payments were all made to the credit consolidation company, which has mysteriously disappeared. They all still want to be paid, and you don't get any credit for the hundreds/thousands of dollars you've paid in the meantime.

Avoid them at all cost. The vast majority are scammer scumbags.


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 Post subject: Re: Debt Consoldiation
PostPosted: Tue Apr 30, 2013 7:50 pm 

Joined: Fri Apr 26, 2013 10:44 pm
Posts: 2
Thanks for the information! I've contacted [REDACTED] and submitted my info. Hope it all goes well.


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 Post subject: Re: Debt Consoldiation
PostPosted: Wed May 01, 2013 9:13 am 

Joined: Fri Sep 12, 2008 12:29 pm
Posts: 1305
Location: Seattle, WA
You obviously did not read the responses to his own question, and were just waiting to post the name of the credit counseling company you're spamming for.


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 Post subject: Re: Debt Consoldiation
PostPosted: Wed May 22, 2013 4:05 am 

Joined: Sun May 19, 2013 3:18 am
Posts: 1
Just googling debt consolidation brings up alot of shady results. Probably not a good thing.


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