Credit Card consolidation advice

iVillage Member
Registered: 11-27-2005
Credit Card consolidation advice
7
Sun, 11-27-2005 - 8:29pm
I'm not making ANY progress paying off over $40K in credit card debt and am therefore considering consolidation. I've read numerous sites on-line and am more stressed out than when I began. I would really benefit from a personal recommendation from someone who's been through this before. Can anyone make a suggestion as to a reputable company to go with?
iVillage Member
Registered: 02-19-2004
Sun, 11-27-2005 - 8:40pm

Consolidating is only going to help if you can get a lower interest rate than the interest rates you are currently paying.

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iVillage Member
Registered: 11-27-2005
Sun, 11-27-2005 - 9:26pm

yes - the two companies I've spoken with on the phone and those I've reviewed on-line all are at a much lower interest rate. I'm currently at 20%+ on each of my cards and the companies gaurantee 8% or lower. They all do have a monthly fee - ranging from $49.95 monthly to 14% of your total starting debt as a fee broken out by the number of months it will take to repay your total debt. But is the $49.95/month too good to be true compared to monthly fees in excess of $500+ that doesn't even go towards the principle repayment?

Supposedly, these companies take all of your credit on, negotiate lowering your interest rates and even reduce the total debt amount where you as the consumer don't maintain contct with your credit card companies. You make all payments through the consolidation company.

There are just so many out there and so much fine print, I was just hoping to hear from soemone who might have use this type of service.

iVillage Member
Registered: 02-19-2004
Sun, 11-27-2005 - 9:51pm

I am not sure what that kind of service is.

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Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Tue, 11-29-2005 - 1:50pm

I think you are referring to Consumer Credit Counseling Service (CCCS or ones similar - basically a Debt Management Program), correct?


I have not done used those services.

iVillage Member
Registered: 01-21-2004
Tue, 11-29-2005 - 3:44pm

I think what you mean is Consumer Credit Counseling?? That is where a company negotiates with your credit card companies to get the interest rates lowered. Then, they consolidate all your monthly payments into one payment that you send to them. They then pay the credit card companies on your behalf.

I did it, and I'm happy to say I'm credit-card debt free. It took me 5 long years but I paid off about 20K in debt. The company I used was American Debt Management Service, they are out of Syosset, NY. They were great to work with. They only charged a monthly fee of $5.00 per credit card account you gave to them. I think there was an enrollment fee of a couple hundred dollars though. I don't remember exactly. But, I know they have a website so look them up and maybe give them a call to see what they can do for you.

Whoever you choose to go through, do your homework. Check them out with the Better Business Bureau in whatever state they're in. My sister got ripped off from a company. They took her money and never paid her creditors.

Hope this helps!

Winnie

iVillage Member
Registered: 11-27-2005
Wed, 11-30-2005 - 9:55pm

That exactly what I was looking for. Just someone who could say they did NOT get 'ripped off'. I've looked at so many companies it makes my head spin.

In your experience, did your credit score go down by doing this consolidation?

iVillage Member
Registered: 02-19-2004
Wed, 11-30-2005 - 10:47pm

But if it's CCCS, they don't do consolidation.

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