I want to consolidate my debt

[muchacho]

the net is littered with services but getting clear advice is tough.

Any links/advice?

Thanks.

[SeveneightyWhoa]

1. Just watch BET for half an hour.

You'll see at least 27 minutes worth of debt-consolidation commercials, I kid you not.

[muchacho]

3. that's just it...

I don't want to be pitched" I want an article from a CPA or a non-profit site with sound advice.

[GOPisEvil]

2. Have you talked to your bank about a consolidation loan?

At least you'd be down to paying one payment and one interest rate.

[muchacho]

5. looked into it...

not an option.

Thanks.

[GOPisEvil]

10. I agree with Bunny.

Consumer Credit Counseling. If I'm not mistaken they are supported by the local financial institutions in your area, so they don't really have a stake in helping you. A friend of mine went with them, and they got his act together totally free of charge.

You have to cut up your credit cards though. All of them.

[Bunny]

4. From what I've heard, the only reputable one is

Consumer Credit Counseling Services. All others are suspect, in so far as the fees they charge, some do not make your payments on time, etc. CCCS is non-profit, and pretty reliable, from what I can tell.

On edit, here's a link to one in NY. You can get the phone number for an office near you on this site:

http://www.cccscny.org/

[muchacho]

7. I'll check them out

thanks

[Carl21014]

13. Don't do it!

Consumer credit services are run by Credit card companies, and they report you as bad debt from the time you enter until the time you get out. Plus you have to pay off 100% of the principal, and some points depending on the program.

If you are going to wreck your credit, you might as well declare bankruptcy and not pay a dime. Plus your credit starts over from that point.

[billybob537]

6. do you belong to a credit union?

best bet for a low rate and no hidden fees; join your local credit union.

[RamblingRose]

8. Try the following web site for some helpful information from Clark Howard.

http://clarkhoward.com/topics/credit_debt.html

Good Luck!

[LuLu550]

9. are you sure you can't pay it down yourself?

Can you make a bit more than your minimum payment each month? If so, here is what you can do; (stop using your cards and pay only cash until you are paid down.)

Let's say you have three cards at various interest rates. Pay the minimum on the cards with the lowest rate and the minimum plus whatever you can afford to pay on the highest interst rate card per month. $100 on card A, $100 card B, $200 on card C. When card C is paid off, take ALL the money you put on card C and put it ALL on card B plus what you were putting on card B. ($300) When that is paid off, take ALL that money and put it on the last card, along with what you had been putting on A ($500).

Depending on your level of debt and how much extra you can afford to begin with, you can pay off a bunch of debt in a couple years.

[sandnsea]

11. Does it hurt credit ratings?

Seems I heard somewhere along the way that debt consolidation hurts credit ratings as much as the debt itself. So if that's your goal, it might not help. But if getting interest rates down so you can manage the debt is your goal, then it might be a way to go. Except I've known a few people who went to CCCS and they were told, wow, you don't have enough money to pay your bills. Well duh. Good luck. Debt sucks.

[villager]

12. lowermybills.com

..has links to a few that seem credible. They're non-profit and "faith-based," but their interest seems to genuinely be to help people bundle up their debts. I don't believe you have to cut up your credit cards...

[northzax]

14. do it yourself

seriously. Assuming that most of your debt that needs consolidating is credit card debt (if it was a mortgage or student loans, refinance already) make up a burdget. Figure out what you can reasonably pay every month. Call your credit card companies and ask to speak to the management center (also known as collections or something similar. Tell them that you are over your head and are finding it very difficult to pay them, and see no practical way to pay them at the current terms. In exchange for closing the card, most banks will negotiate ridiculously cheap payments with you to get their money. I convinced MBNA to let me pay off a ten thousand dollar debt over four years at ONE PERCENT. Ischedule my payments for six months in advance, and watch my bill go down every month. Sure, the account is closed, but I'd rather it be closed by me than by them.

be patient and reasonable, so will they. And then stick to the deal you make. Don't avoid them if they call you, call back within a day. They want their money, that's the first and most important thing, and if they think you are trying to pay them, they will be much easier on you.

[MissMillie]

15. Remember to watch your statements carefully

Credit card companies have a habit of "updating" inactive accounts.

What happens is this:

You enter into a Debt Management program and pay on it for several months.

Then, for what ever reason, one of your creditors decides that they are going to change your inactive MasterCard account to a Visa account. They issue you a new account number and do not notify you of the change.

They continue to accept payments from your credit counselor, and credit the new account, but report the old account as late.

I've been with a Debt Management program for 1.5 years and have never missed a payment. But because of two account "updates" two of my credit cards are listed on my credit report as being > 5 months late.

Keep a close eye on things.

[muchacho]

16. thanks

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