Credit Consolidation

[srjjames]

HI! Does anybody know any good credit/debt consolidation companies. I was getting ready to go with Ameridebt, but when I checked with the Better Business Bureau, they had an unsatifactory record. Does any body know any good companies?

[miss priss]

once i tried to utilize this type of particular service--needless to say it didn't work. i later found out that it is better to call your creditors and arrange what they call a "settlement". Settlements allow you to pay smaller percentage of what was owed on the bill. from my understanding, third party creditors for lack of better terms(debt counselors....if you didn't know they are paid by the companies you owe a debt to to try to get you to pay...some are owned by the very credit card companies,etc. you may owe) are just as bad as filing bankruptcies (according to my brother-in-law who works for a huge credit card company ---he's a credit aficionado.....n-e-ways....). whatever you do let these two options be your last choice. good luck!

[Honeykiss1974]

Go to www.creditinfocenter.com

It is ran by an attorney who fights for the "little guy" (BKA us ). She has TONS of information about credit consolidation companies and just about credit in general.

There is also a discussion board.

The catch with credit consolidation is that all companies will require that you not open any new lines of credit while you are on the program. Which is good, but it includes ANY (i.e. buying a house, buying a new car when your old one is totaled in an accident, etc.) for the whole time you are on the program (which is usually between 5 to 7 years). It's the same thing as filing Chapter 13 bankruptcy (which is when the court basically "consolidates" your bill into one payment for your creditors).

[ClassyLady]

A friend of mine who is a realtor said that credit consolidation is the absolute last thing that you should do to try to pay off your debt. Like miss priss said, you are better off trying to work something out with the individual creditors. Calling them up and giving them a sob story is better in the long run than trying the credit consolidation. When that shows up on your credit report, it makes you look like you can't take care of your bills yourself. I say don't do it.

[Questions404]

Originally posted by srjjames
HI! Does anybody know any good credit/debt consolidation companies. I was getting ready to go with Ameridebt, but when I checked with the Better Business Bureau, they had an unsatifactory record. Does any body know any good companies?

I work in mortgage and truly do not suggest that anyone use credit counseling companies. When these companies pop up on your credit report (which is pulled at the beginning of your loan process) and CCCS or any of the other companies come up on the report, we red-flag it because we already know that you threw your hands up once and couldn't handle your bills. That is the same as declaring bankruptcy to some of the companies I've worked for. Even getting a financial advisor is better than getting some part-time worker to work through your bills with you when you can do that on your own. Get a credit report from the three credit reporting agencies (Transunion, Experian, Equifax); they will give you a credit report without the score at your request. Count your and your creditors. Working out a deal with them is better than any deal an outside company can work out for you -- they take their cut right off the top and your credit takes a hit. Be smart, be concise and document everything so that you will not have any problems later.

[damasa]

Originally posted by Questions404
I work in mortgage and truly do not suggest that anyone use credit counseling companies. When these companies pop up on your credit report (which is pulled at the beginning of your loan process) and CCCS or any of the other companies come up on the report, we red-flag it because we already know that you threw your hands up once and couldn't handle your bills. That is the same as declaring bankruptcy to some of the companies I've worked for. Even getting a financial advisor is better than getting some part-time worker to work through your bills with you when you can do that on your own. Get a credit report from the three credit reporting agencies (Transunion, Experian, Equifax); they will give you a credit report without the score at your request. Count your and your creditors. Working out a deal with them is better than any deal an outside company can work out for you -- they take their cut right off the top and your credit takes a hit. Be smart, be concise and document everything so that you will not have any problems later.

I agree with everything said here.

I work at a bank that also has an established mortgage company and credit consolidation should be your LAST option to take.

It is always better to talk to each individual creditor. Some people don't realize that some creditors will take as little as half of what you owe them in order to secure some type of payment with them (so they don't lose all their money on a bad debt account).

If you are trying to keep your credit history looking good, make sure that you keep the number of credit inquiries that you authorize to a minimum. More than three inquiries within a six month period will look bad on a credit score.

Another thing some people might not know: does anyone have like 20 credit cards and only really use one or two of them? If so, take the rest of those cards and cancel them, it can also reflect negatively on a credit report.

Yadda Yadda, I'm rambling here, but I do work at a bank and I work with credit agencies on a daily basis, if anyone needs any help, just pm me, anytime, I'm more than happy to help.

Blaine

[Mz Destiny]

I went with Money Management International. They came highly recommended to me by First Union. Their website is Money Management International . I had great success with them. Yes, people say that mortgage companies and banks look down on them, but you gotta do what's best for you in the long run.

[Krisco]

Damasa, Your box's full! Empty that thing so I can pm ya! Thanks

[damasa]

Originally posted by Krisco
Damasa, Your box's full! Empty that thing so I can pm ya! Thanks

LOL, sorry about that, it's all cleared out now.