Thread: Know, How Can We Get Out From Our Credit Card Debt ?

Credit counseling is a very common form of online debt consolidation. It is also known as credit card consolidation. Currently rising interest rates and mounting credit card debt is prompting many consumers to look for ways to consolidate their credit card bills and so credit card counseling gained recognition among people.

Credit counseling helps to make one payment directly to them, which then they distributes to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your creditors by contacting your credit card companies and negotiating for lower interest rate on your behalf. You can usually expect to pay back your entire balance on the debt that you owe and anywhere between six and twelve percent of the interest. This is about half of what your normal interest would be currently.

On average, most online credit counseling programs take around five years. As such, credit card consolidation does not affect your credit rating. In fact, the results of consolidation are often positive simply because it's easier to manage and you pay less interest.

May be a good idea - IF, please note BIG IF, the credit card companies want to participate.

There are other methods to lower your debts which are free and will not hurt you. Before you consider debt consolidation please read Why Debt Settlement Companies Will Make Your Situation Worse

Originally Posted by CreditCardGuru

There are other methods to lower your debts which are free and will not hurt you. Before you consider debt consolidation please read Why Debt Settlement Companies Will Make Your Situation Worse

yeah man.
it makes me very clearer.
thankz

These debt settlement outifts that are popping up everywhere are a scam. Sounds good at first but you dig a little deeper and see they are going to ruin your credit and you might not even save any money. I'd resort to about anything else including bankruptcy before I would do that. They will hurt your credit score as bad as bankruptcy so you might as well do that instead it's a helluva lot cheaper than paying the debt consolidation fees.

Good thinking.

Originally Posted by AnthonyBarone

These debt settlement outifts that are popping up everywhere are a scam. Sounds good at first but you dig a little deeper and see they are going to ruin your credit and you might not even save any money. I'd resort to about anything else including bankruptcy before I would do that. They will hurt your credit score as bad as bankruptcy so you might as well do that instead it's a helluva lot cheaper than paying the debt consolidation fees.

That's good thinking IF you qualify for a Chapter 7 - a total wipeout of your debts. Unfortunately the Bush/Republican 2005 bankruptcy laws sentence more and more folks into Chapter 13s.

debt consolidation is the biggest scam out there. i skimmed over that link and that pretty much summarizes it. they are a bunch of bottom feeding scum that are trying to profit off of your bad credit situation.

bankruptcy as already said is impossible because of bu****. but if the process of debt consolidation hurts your credit as bad as bankruptcy (don't know if thats true or not tho) then it may be better to file bankruptcy even if you can't wipe out your debts. reorganizing debts that way sounds like its cheaper than paying some bottom feeding scum debt consoling thousands to ruin your credit and not save you anything.

Honestly the best way to get out from under debt is just to buckle down and live cheap. i had to do that for over a year and yea it sucked but at least I was able to pay it off. Cut back on everything you possibly can to save money. never pay for parking, never eat out, buy cheap cheap food at the store, no new clothes. Like I said it will suck while you are doing it but a year later you will be glad you did.

Here's what I did [in order]

1) cut back spending on EVERYTHING
2) sold junk I no longer needed
3) increased my income

If you cut back on your spending that gives you extra money and if you can increase your income that gives you even more extra money. Put it all towards your debt to pay it off faster. I know many people can't increase their income easily but if it's possible look into a part-time or weekend job to give you a little extra income. Every little bit helps in paying off your debt that much faster.