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  1. #1
    Join Date
    Nov 2008
    Posts
    8

    Default Debt Consolidation Companies

    My question involves personal finance in the State of: Georgia

    What's the scoop on these types of companies? I may need to see about using one and need to know more. I've read they are scams but I have not idea. Can anyone recommend one to use? Tell me about your dealings with them? I don't see how they make their money if "there is no charge for their services".

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Debt Consolidation Companies

    Quote Quoting gary71
    View Post
    My question involves personal finance in the State of: Georgia

    What's the scoop on these types of companies? I may need to see about using one and need to know more. I've read they are scams but I have not idea. Can anyone recommend one to use? Tell me about your dealings with them? I don't see how they make their money if "there is no charge for their services".
    The NON profit ones are the only ones that I would trust.

    Here is a link:

    http://ficoforums.myfico.com/fico/

    These people will give you the names of the ones that would work out best for you.

  3. #3
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Debt Consolidation Companies

    There are two types:

    Credit Counseling services. These services are non-profit, but understand their motives: they receive their funds from the very banks that own the credit cards, so their motivation is not helping you, as much as it is for the cc company to get paid. With that said, these companies are the better of the two options.

    Credit settlement companies. These companies will typically instruct you to stop paying your creditors and hold the money against the day that they can negotiate a settlement for you. In the meantime, they charge fees for the negotiation, and fees for the "savings." Since you stopped paying, and then settled for less than full balance, your credit is trashed. the only real winner here is the negotiating company.

    No matter which one you choose, remember that the overwhelming majority of people who enter any kind of debt program fail, and wind up in bankruptcy anyway.

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