I was thinking about consolidating my debt with a company. My credit is about far shot.
So far I read some reviews about these companies but they seem as they are not as good as people think. I read where they just have you save your own money in a separate bank account and that's what you use to pay your debt.Well what good is that couldn't you do that on your own and no one would have that problem.

I have an apt. set up by phone tomorrow and just want to be prepared of what they may have me try do. I think the company is too good to be true because they tell you no up front fees. I forget the name of the company as I've searched so many. I'm pretty sure it's because they want me to use my money. I'm not exactly sure how that works.

They contact your creditors and work out a plan for you to pay less than you are now but while it gets you out of debt in an orderly manner, the chances you get a loan or credit card, or buy a house or car are virtually NIL. Yes it's your money they use as they pay off nothing for you, or give you any money. You will have more of your own money though, with one place to pay, rather than many, and will have to keep up the new payments or be in default.

Takes years though to repair your credit rating. Personally I would prefer working extra jobs and paying my debts off myself.

so just one payment to them only.. I was checking out some companies and looking at some reviews.

thanks

NO! You will make ALL your payments to them, however many the contract calls for. I meant some charge a fee, some roll the fees into the payments. Some have NO fees. Sorry for the confusion.

Also, in several states these are illegal.

They do nothing that you can't do for yourself, call and ask for easy payment or to lower payment. This will go as negitive on your credit report. If you are that bad, one may just consider bankruptcy.

There are tons of horror stories on these types of companies, where they don't pay on time to the deals they make, or can't make deals and don't tell you. And you end up owe lots of late fees

Yea I was reading on that stuff. A lot reviews I read where this happened.

Credit counseling is not necessarily a bad idea, there is quite a bit to digging your way out of debts and trying to negotiate with your debtors.

Quote:

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Originally Posted by https://www.consumer.ftc.gov/articles/getting-out-debt

How do I find a credit counselor I can trust?

Most reputable credit counseling agencies are non-profits with low fees and offer services through local offices, online, or on the phone. Look for a credit counselor you can meet in person. You often can find non-profit credit counseling programs offered through:

credit unions
universities
military bases
U.S. Cooperative Extension Service branches

Your financial institution or local consumer protection agency also may be able to refer you to a credit counselor.

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There are tons of resources and articles online, but know it involves a lot of hard work. It took me more then 3 years to pay off my bad accounts and clean up my credit. Really worth it though.

https://www.experian.com/blogs/ask-e...credit-repair/

Good luck keep us in mind if you have questions.