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Debt consolidation firms

Know anything about them? Do they hurt your credit?


Asked by maggiebella25 at 8:55 PM on Jul. 25, 2010 in Parenting Debate

Level 16 (2,868 Credits)
This question is closed.
Answers (4)
  • Do not be fooled by what they claim they can do for you. You can accomplish all of that yourself. Your credit will be effected by anything that has you paying less than you originally owed, even if your creditors agree to it. Did you know that if you took part in mortgage loan modifications, your credit score could be lowered by 150 points? You could go to your local bank and see if they can help you by giving you a consolidation loan, or you could contact your creditors personally and speak to them. Be sure to log all your calls and keep note on your conversations. Good Luck to you!

    Answer by WoodWitch at 10:45 PM on Jul. 25, 2010

  • Every financial advisor and lawyer that I've heard speak of them say they are bad news and to stay away from them.

    Answer by admckenzie at 9:01 PM on Jul. 25, 2010

  • I talked to one a few years ago. They wanted more each month than my minimums would have been. They do not actually have any special connections or deals to offer. They call your creditors and make deals, which you can do yourself! It's cheaper to do it yourself, but it is very frustrating. Ultimately, we did not use their services.

    Answer by Pnukey at 9:00 PM on Jul. 25, 2010

  • I've never personally used one. I've always heard to try going to your bank first to consolidate. But a close friend of mine did use one years ago, they 'helped' for 3 months, then he got screwed. Not all are the same kind, some only consolidate past payments, not the whole debt.
    Defeniftly do your research before signing anything! Good luck!

    Answer by MSully3 at 9:03 PM on Jul. 25, 2010