Can anyone explain to me how those debt-reduction companies work?

I%26#039;m about 10,000 dollars in debt, and despite trying, I am unable to crawl out of this hole. I do make more than my required payment on time monthly, only have debt on three credit cards, but my debt stays the same. I was thinking of one of those debt consolidation companies I see advertised on TV all the time, but someone told me they are a bad deal. Can anyone tell me how they work and why they are a bad deal?

Can anyone explain to me how those debt-reduction companies work?

They call the credit and try to negociate interest rate reductions and forgiveness of debts.

They usually charge a percentage for this.

You can do it yourself, and save what they charge.

Any debt that is forgiven, counts as income for your taxes, unless it is discharged in a bankruptcy. So that has to be considered.

Your best bet, is to contact a Bankruptcy Attorney, they can do the same negociations, and are a lot more honest about their fees. They can help even if you do not file for Bankruptcy. Usually, their initial consultation is free. They have more negociating power I think since they know the laws quite well, and collection agencies cringe at dealing with bankruptcy attorneys, since a bankruptcy can stay all their contracts and stop all collection efforts except through the bankruptcy court.

Debt Consolidation is a loan that combines all your payments into one, and you normally pay less per month, but a heck of a lot more inthe long run. They tend to keep you in debt longer.

Can anyone explain to me how those debt-reduction companies work?

They don%26#039;t will scamm you.

Got to a nationwide bank

Citi, Bank of America. Wells Fargo.

Talk to a loan officer and develop a program to reduce your debt

It will be free. The consolidations will pound you for eveyr cent you have

Can anyone explain to me how those debt-reduction companies work?

They consolidate your debt to put you deeper in it; with them. It%26#039;s just another loan. You may benifit by having one lowered payment each month but it will be over a longer period of time. You will pay more in the long run than you would if you paid for the debt you currently have. If you do not pay more than the minimum you will not get out of debt.

Can anyone explain to me how those debt-reduction companies work?

before going to them companies see if you can transfer your debt balance to a intrest free balance account,that way youl only be paying what you owe,you can try diong that a few times! thats what that finance guy on tv used to say anyway

Can anyone explain to me how those debt-reduction companies work?

To consolidate debts, you don%26#039;t need any helper company. You need to find good balance transfer offers that minimize your interest or, even better, talk to each of your current c/c companies to reduce your interest and offer additional credit line for transfer.

To reduce debts, you generally need a helper company. They negotiate with your creditors, trying to convince them to %26quot;forgive%26quot; you some part of your debt. Some creditors will do, if they believe that you can stop paying them at all. If this happens, the debt reduction company will take a good chunk of the money you save, and this whole deal will greatly damage your credit record, so you will be paying more for credit for years and years to go.

If you spend less than you make, keep making payments on time and talk to your creditors yourself, you will be out of this hole on your own.

Good luck.

Can anyone explain to me how those debt-reduction companies work?

Here is a website that may help. They can send you free email information on debts and how to improve your debt load with handy LEGAL tips. They also point you in the direction of reputable legal aid should your case merit one.

Can anyone explain to me how those debt-reduction companies work?

what they do is not pay your creditors for months and then try and settle for less. It will trash your credit and you will be treated as if you have filed bankruptcy if you try to get a home loan.

You can save the fees they charge to do this and do it yourself.

Also, If you use one of these companies and they don%26#039;t pay your debt. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hired.

Can anyone explain to me how those debt-reduction companies work?

Under your circumstance,I suggest here for you to have a visit.http://debt-consolidation.featured-resou...

Can anyone explain to me how those debt-reduction companies work?

Tackling multiple credit card debts can be quite confusing and will require a lot of effort. Consolidation of various credit card debts is an obvious solution. But, finding a company which takes care of this task most efficiently is not an easy job. The five questions mentioned below will help you find a right credit card debt consolidation agency, which won%26#039;t burn a hole in your pocket and get you the best deal.

1. How professional they are?

Checkout the credentials of the credit card debt consolidation company. Did they help out customers with similar problems? Ask for references and contact them. Get a feedback about the company. Know about the professional expertise of the people involved in the company. This will help you gain confidence that your problem of credit card debt will be handled efficiently.

2. Is it non profit?

Yes, there are companies out there who offer free credit card debt consolidation help. Its your duty to find them out. These companies have people who don%26#039;t work for profit. The fact that they don%26#039;t charge you doesn%26#039;t mean that they are inept. Many such organizations are run by people who themselves were once a victim of credit card debt. They bring their genuine experience of tackling such problems. Lookout for one such company and get help without paying a penny.

Read more from: http://www.credit-card-gallery.com/artic...