debt consolidation

[nomorecredit]

Can anyone tell me if there's a website that lists reputable and non-reputable reviews of credit counseling agencies, like who to avoid, who is a scam, etc.? I need direction.

Also, is it true that if you do debt consolidation that it's the same on your credit report as filing bankruptcy? I mean, is there info tnat someone can point me to more about this? My credit report as it stands now isn't great, being that I owe so much, but I have never made a late payment on anything, so at *least*...

As far as background (try to keep this short), our consumer debt has gotten out of control (credit cards and debit cards are all cut up), my husband isn't working due to health issues, and I had to put him on my insurance at work (which is a whopping $432 a month. I've looked for other insurances, but he needs a great plan to cover everything) I'm only 25 and want to get this fixed before it's too late!! I work solely on commission so I've been doing as much work as humanly possible to keep us afloat and so far have been successful (we took the sacarfie of cancelling cable and some other luxuries already) I'm just at a loss of what to do in every sense of the word.

[Tree0164]

I haven't worked with any debt consolidation companies-alot of them are snakes in the snakepit-waiting for folks to jump in. You can do it yourself-just need to make sure you stop using the credit cards.

How about posting how much you are in debt and what your income is. We can help you out.

Also pick up Dave Ramney's Total Money Makeover it can help get you started.

[nomorecredit]

I haven't worked with any debt consolidation companies-alot of them are snakes in the snakepit-waiting for folks to jump in. You can do it yourself-just need to make sure you stop using the credit cards.

How about posting how much you are in debt and what your income is. We can help you out.

Also pick up Dave Ramney's Total Money Makeover it can help get you started.

Thanks for the offer. I started making a list of everything we owe (yikes), interest rates, etc, and I will post it when I have everything together!

[vsjhoc]

There's a lot of confusion in the marketplace about the difference between debt consolidation, debt settlement, and debt management plans (provided by credit counseling agencies).

IMHO, none are worthwhile and you can do a better job yourself. You are already on the right road because you cut up the cards, turned off the cable, etc. Post your list and we'll see what we can suggest.

Debt consolidation: This is only worthwhile if you can get a loan with an interest rate that is lower than the lowest rate of your individual debts. This is highly unlikely; banks generally don't give low-rate, unsecured, personal loans to pay off credit card debt. You can't borrow your way out of debt.

Debt settlement: This is probably the worst option. You make monthly payments to the company but they don't pay your debts until you have accumulated a large sum -- which sits in their account, earning interest. Meanwhile, you don't pay your credit card accounts, which does a lot of harm to your credit.

DMPs: Usually you have to be in default to be eligible for these programs. So ironically while you have high balances, they won't be interested in working with you until you are past due. If you go on a DMP, watch these credit counseling agencies like a hawk -- you have to spend a lot of time confirming that the payments you give them are credited to your individual credit card accounts. If you have to spend your money and your time checking up on them, why not do the work yourself? No one will be more invested in cleaning this up than you.

Good luck!

[jIM_Ohio]

Thanks for the offer. I started making a list of everything we owe (yikes), interest rates, etc, and I will post it when I have everything together!

Facing a problem is a good way to solve it. It is not easy, but feels good when money works for you instead of you working for money.