Credit card debt

[petereater]

Has anyone ever used one of those consolidation companies that promise to lower your payments by working with the credit companies to lower interest rates and outstanding balances? A recent move and a whirlwind of circumstances out of my control have led me to suddenly being overwhelmed by debt. I need a solution and I was thinking of using one of these services. Any recommendations?

 

[tonyboy]

Be careful about that step man. If you REALLY need one of these services you may have to go there.
Very often the credit rating services will lower your credit score just for the fact thay you have one of these services.
They may be very useful as a last resort, much better than declaring bankruptcy. But once you fill out the app and they submit it it appears on your credit history.
If you must do it then do it. Far better if you can get out of the debt on your own though. The main thing is to get out of the debt.
Good luck man.

 

[jft245]

I have used one call InCharge(original name Porfina). I had about ten different accounts when I started with over $10,000 due on them. After 49 months I am debt free. The good thing is that the interest rates are lowered and the accounts are closed so that you cant charge to them. My monthly payment was $420 month of which $40 went to InCharge as a service fee. Even in the middle of using the service I was able to open a charge account with Dell and Home Depot. After I finished paying off all accounts I was also able to open a credit line with a national bank. The down side is that for these new accounts I do not get the lowest possible interest rates. The credit line account charges me 10% over their lowest rate. All in all the sevice helped me because I never would have been able to pay off the accounts without charging on them and keeping the balances at max. I have learned to keep my account balances low and to make more then the minimum monthly payment. If need be, I could pay off all the balances on my new accounts in 4 months.

 

[2pourvous]

go to the Bank and put yopur credit card in the FREEZER so you wont use them

 

[versa39]

it's better to cut them up and make the temptation go away. i only use a visa check card and life is decidedly simpler, if i don't have the money, i don't get the toy.....but i do have a credit card for car rental when i travel, because you can't pay for that with a check card...it has like a 500 limit so there is no way to get in trouble with it.l

 

[JayHew]

You can call and talk to the individual credit card issuers and see about reducing the interest rates and making payment schedules. Most will work with you on getting things under control. Next, sit down with yourself and work out a home budget and be honest while doing so. As part of the budget, there should be a savings amount to pack away (even if $5 a month) but that gets paid first, then work out all the other stuff. Stick to it come hell or high water. Plan out what it will take to pay off all the debt and how long it will take and pack all credit cards away not using them at all. Any purchases wanted, use cash, if you don't have the cash, don't buy.

Not always easy but if you follow a course of caution and paying for things with cash, you develop a good sense over time of what the difference is between a need and a want. Most often we get into trouble because of our wants, not necessarily what it is we actually need. Delayed gradification is better to learn then to have mounting debt all the time.

 

[unclaimedblessing]

My cousin just tried that and was disgusted to find out that there are so many unscrupulous lenders out there. They must sell your name to others because that was 3 months ago and she's still getting calls (all of which are "hard sell", so they're not doing it in a spirit to help her, there must be profits to be made).
She ultimately joined a credit union and they worked with her to determine what she could borrow to consolidate her debts and pay off her credit cards at a fixed low interest rate.
She is very satisfied with what they did for her.

 

[sexylad]

It's a major issue here in the UK. We have something called IVAs which is the next step down from bankruptcy... but it screws your credit for about 5 years I think, and you have to pay back fixed amounts each month... much better if you can do it without going down that path.

 

[RicanDAB]

I am on a debt consolidation, have been for 4 years now. I had about $20,000 in debt and now I owe just under $2,000. Helped me out a lot by having them get my debts and interest rates reduced. Glad I will have this train wreck resolved by next year!

 

[pills]

I was about $7k in credit card debt about two years ago. My work offered voluntary overtime so I would work about one or two hours extra per day. My goal was to be debt free within a year and it happened in 9 months. If this is an option for you, it worked really well for me.

Haven't charged anything on the couple of cards that I had since. I hear it's best to keep the card open with a zero balance so you can display a long credit history with the card company.

 

[smelter]

Every time you have an urge to use a credit card, do what the Credit Card Company does to you .......... grab your balls and squeeze the shit out of them!