It looks better than bankruptcy…
You have to research debt consolidation companies carefully.
I looked into one once and it’s tricky. You actually have to let your debts go past due, give the debt consolidation company a power of attorney over your accounts so that they can negotiate with your creditors, and then deposit payments monthly into an account for the credit consolidation company to take payments from you.
The problem is that they can’t guarantee that they can negotiate a lower payment with your card company PLUS they charge you fees on top. So they might save you 50% on your outsdanting balance BUT you’ll lose a good chunk of that savings in the fees you pay the consolidation company.
It does impact your credit report (it happened to me!) however, if your credit is already in bad shape, is it really going to hurt you in the long run? Probably not.
You will at least pay down your debt.
Bad credit debt consolidation help permits a person with poor credit rating, to obtain bad credit debt consolidation loan so that monthly installments can be reduced. What a person has to do is ask for apresent debts have been dealt with, the bad credit debt consolidation loan can be paid off easily.
December 20th, 2009 at 9:36 am
Yea, why not? This way you only have one bill instead of 10