what is a good credit card debt consolidation company?

debt consolidation company

anyone have any experience with dealing with these types of companies? recommendations?

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Categories : debt consolidation



Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way.

A. Have a garage sale and sell anything that you no longer need or want.

B.Get a temporary part time job, if you have one, get another.

Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an “emergency fund” category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for “fun” to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

You can do it and it isn’t as hard as you think. Just follow the plan.


Only ones that belong to NFCC are legit. has a list.

October 7th, 2009 at 12:28 am

Don’t Consolidate. Consolidation debt can cause you in the long run. Here are the reasons:

1. Consolidation programs asks consumers not to pay their creditors for a long period of time.

2. During the process, your FICO score goes down because you will now have late payments. Your FICO score is important because it determines a lot of things, from car payment to job opportunities.

3. Consolidation programs asks you to collateral some kind of your assets, most of the time your House. If you don’t pay them, they will take away your HOUSE!!!

4. In order to receive lower interest rate, you have to collateral something for them.

5. Extending the debt for a long period of time DOUBLES yours debt.
so, instead of paying 8,000 of the original debt, you will now pay 9000 to 10,000 from additional interest rates they acquire.


Instead, call your creditors. They would negotiate with you. As Suze Orman quotes, “They’ll rather have something, rather than nothing.” which is reasonable right.


hello there, My name is Lenny and I work for a debt settlement firm in Midtown New York. If you are having credit problems or need some advice I can help. My specialty revolves around settling debt for consumers (THAT HAVE A HARD TIME PAYING OFF THEIR MINIMUM BALANCES). If you’re interested give me a call at 917-386-7039 (Ask for Lenny), or email me at


most if not all those companies charge for the service and dont get you any results. i know of someone who had a debt and paid a company 3600$ to “consolidate” the bills and they did NOTHING for her and she didnt get anyof the money back/.

Dont do it , buckle down and just pay off as much as you can, with discipline it will be fine.


Make sure they are a reputable company and have a good track record. I was also in deep debts last year and I took help of freedom debt relief to consolidate my credit card debts, now I am almost debt free. I am happy with their service and recommend you go for them.

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