Jobless Helper: Little Known Secrets To Credit Card Debt Consolidation

By Jeffrey Paulsen on July 22, 2010, 4:56 pm Posted in Business News

There are debt consolidation programs, debt settlement companies and debt counselors springing up all over the place. The internet and every third commercial are making some promise that there is help for your debt only one click or phone call away. Realistically, you know it took you quite some time to find yourself this deep in credit card debt, so do you really think you’ll get out of debt overnight? It’s not going to happen.

All You Need Is Patience

If you really want to diligently and patiently go about the process of getting out of debt, here is a short list of little known secrets to credit card debt consolidation. Debt consolidation companies will try to tell you that debt consolidation loans are easy to get. Not true! One reason they are really hard to get is because if you are in debt then you are probably delinquent on something and this makes you a credit risk. Because of this they may promise you an easy loan, with a very high interest rate. There are also promises of lower monthly payments. But higher interest fees mean you will pay more in the long run.

What Have You Got To Lose

The other little known secret to credit card debt consolidation that the companies will tell you to mask the real truth is that they will take care of you and all of your problems. They will lump your payments into one. They will negotiate lower interest rates for you. They will also charge you a fee and guess what? They will charge the creditor a fee as well. Yes, they will make it sound like a beautiful, what have you got to lose plan. Little secret reveal: They are no more qualified than you are to do any of these things for yourself—minus the extra fees you’ll pay them.

 

Jump in with both feet to examine any debt consolidation company you are considering to uncover their “little” secrets.

Related posts:

1. Can I Write Off Credit Card Debt On A Debt Consolidation Loan?
2. Worst Case Tips Surrounding Debt Consolidation Loan Consequences
3. Differences Between A Credit Repair Co. And A Debt Consolidation Co.
4. Debt Consolidation: Can I Still Use My Credit Cards During This Period?
5. How Do Bad Credit Debt Consolidation Home Equity Loans Work?

One Response to “Jobless Helper: Little Known Secrets To Credit Card Debt Consolidation”

1. Anne says:

   July 22, 2010 at 11:13 pm

   Also not included, debt consolidation programs used that negotiate with your creditors SIGNIFICANTLY HURT YOUR FICO SCORE…another thing they don’t tell you! Future lenders will see “managed by consumer counseling” or something to that effect on your credit report, and it is viewed similarly to a chapter 13 bankruptcy by lenders internally, and will hurt your score until you have left the program and been back on your own for 2 years…THEY DO NOT TELL YOU THIS! It happened to me, and I actually rec’d MUCH lower payment arrangements when I handled my own credit card payments later on with my credit card companies who often have a “hardship” program available to card holders who are at least 30-60 days past due on their monthly payments, and sometimes will give you a break from payments altogether for awhile if you can prove unemployment, and this program DOES NOT hurt your FICO score at all. Furthermore, not mentioned in this article, along with MANY things left out, is that the “fee” the consolidation company charges can equate to a credit card late fee, and upwards to $300/year…wouldn’t that money be better spent paying down your debt???