Consolidating Credit Cards

katsy · #1 (**permalink**) 12-04-2007, 04:53 PM

I have quite a few credit cards and would like to consolidate them. I already spoke with someone a CCCS and they told me they can have my credit card debt completely paid up in 4 years as opposed to 14. This sounds great! My questions is --- What's the catch? Should I trust them?

PrincessPerky · #2 (**permalink**) 12-05-2007, 09:26 AM

that depends on how much you owe, how much you think you can pay and what on earth they plan on doing differently..not to mention I bet others here know but I don't. what is a CCCS?

Coleroo · #3 (**permalink**) 12-05-2007, 10:04 PM

how good is your credit score? can you swing for a low intro rate (0% for 12 months) or a low permanent rate (perhaps 9% apr) or something? If so, why not try applying for a "consolidation" credit card, do a balance transfer for all your other cards and then cut up the physical new card and simply pay off the balance in your own chosen way (i.e. balance divided by 36 months..or whatever).

I have never personally dealt with a consolidation company but i would be very very cautious of them myself - i've heard and read some terrible rumors about some companies.

if you do choose to go with them make sure you know every detail of their plan - what are the transfer (or "initial") fees, what is the percentage rate..is it fixed? are you getting a one time loan from them or another revolving line of credit (they reflect differently on your credit report)... are there any annual fees or customer service fees? what's in it for them?

loanstar · #4 (**permalink**) 12-08-2007, 02:53 PM

I think you should trust them, since they're a non-profit organisation, they have no motive to lie to you. their services should be free.

Quote:

Originally Posted by PrincessPerky

what is a CCCS?

CCCS = Consumer Credit Counselling Services; a UK charity aiming to help people that are struggling with debt.

Pleasenodebt · #5 (**permalink**) 12-19-2007, 10:26 PM

Credit card counseling agencies receive kick backs in the form of "Fair Share" contributions. Credit counseling companies also do charge an upfront fee and monthly fees to manage your creditors for you and they get paid from the credit card companies so they definitely make a profit. Recently many credit card counseling companies have come under scrutiny for their aggressive non-profit marketing strategies when based upon examination must be turning a profit.

Tree0164 · #6 (**permalink**) 12-20-2007, 04:05 AM

I think you can do it yourself. There are alot of fees etc associated with these credit consouling companies even though they call them selfs non-profits.

Get yourself Dave Ramsey's book from the library-he has top notch plan to pay off the debt.

Make a budget, get a second job etc and you can probably do it yourself within 4 years too.

We can help you too-post your budget, your credit cards etc