Here’s something to keep in mind. The credit card companies are NOT working for you. They are only in the business of making money for themselves. The main goal for these major credit card companies, is to cash in on the late fees and finance charges. The more difficult they can make it for you to pay, the more money they’ll receive. Stop handing them your hard earned money! By hiring a reliable debt consolidation firm, you’ll begin seeing an immediate improvement in your financial status.

Once you make the decision to obtain the services of a debt consolidation firm, a financial specialist will be assigned to compose a personal debt management plan, which will, in essence, be a road map that will lead you out of debt. When you hire a reputable company, you’ll be given seasoned advice by professionals that are working for YOU. Instead of making three or four payments each month, a good debt consultant will be able to reduce your payments to just ONE.

How do you find a reputable debt consolidation company? It just takes a little research. Look online for a company that offers low rates, has a qualified staff and is certified. You also want to weed out any firm that has had any complaints filed against them with the Better Business Bureau. A less than reputable company will not be beneficial to you, and can make your situation worse.

Begin your search by asking A LOT of questions. You want to deal with a company that can answer any question you have, and offer a comprehensive solution to your problem.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website – where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

Credit Card Debt Consolidation FAQ:

Question: Is it wise to pay off credit card debt with a home equity loan?
Is there a better option? My credit union is offering a consolidation loan and telling me that the average in our area is about 13.87 percent.

Answer: A home equity loan if often touted as a good way to pay off credit card debt, especially in areas where homes have greatly increased in price; however, you should know that technically, the interest on such a loan is NOT considered deductible by the IRS unless the loan is used to improve the property. It’s likely that you could claim it anyway without the IRS auditing you, but it could happen, and in that case, you’d have to pay any back taxes plus interest to the IRS. This is a position you seriously want to avoid.

Secondly, you’re betting against your house that you can afford to pay this loan, Are you willing to close all the credit accounts if you take this loan, so you won’t be tempted to run the balances up again? You won’t have a way to pay them off again if you do.

Remember that you’re possibly putting yourself in the position that, should you need to sell the house for some reason, that you’d lose the equity you’ve gained over however long you’ve owned it. Is this a good risk?

Question: Credit Card Debt Question?
I currently have about $30,000 in credit card debt between 7 different cards. I make slightly more than the minimum payments every month, which total around $1,000 a month. This eats up half my income. I have never been late on a payment, ever. Does it make sense for me to seek some kind of debt consolidation or debt counseling service to negotiate with my credit card companies?

Answer: I have taken and taught the Dave Ramsey course and what he recommends is paying the minimum amount on all you credit cards except the smallest amount owed. On that card you apply all the “extra” money you’ve been paying. When that debt is payed off you then apply the money to your next lowest debt. Keep paying the same amount of money you were sending to the first company to the new target debt which is the new lowest debt. In the meantime don’t use your credit cards anymore. This will work and you will have learned a lesson in money management that will benefit you forever.

Question: Credit Debt Consolidation?
I only have two credit cards ($750.00 limit on each; each just about to their limit). I try to make more than my minimum payment each time, but money’s been a little tight the past couple months. I’m thinking about Debt Consolidation but I’m not too sure if that’s the best thing, or if I should just keep making the payments on my own. Also, I was thinking of transferring one of the balances to a lower interest rate credit card. What do you think would be best?

Answer: If you are paying extraordinarily elevated interest rates on one or more of your credit cards, you should consider consolidating all of your payments. It could provide you with a single periodical expense plan with low interest rates and a favorable pay-back period.

Question: Credit card debt…
I have about $3,500 in credit card debt. What’s the best way to pay it off?

Does anyone have any experience with those debt consolidation services seen on TV?

Answer: Most likely there are two ways to consolidate your credit card debts. One of the way is Credit Card Consolidation Loan, which is a type of unsecured personal loan. When you have several credit card debts, you can consolidate it into one lower, fixed rate loan. You make a single lump sum payment each month to your credit counselor and he in turn will pay off to your current creditors.The added advantage would be, it will also improve your credit score as subsequent payments are made to pay off the new loan.

Another way is credit card debt settlement plan wherein a debt settlement company would negotiate a lower lump sum payment to payoff your creditors and as a result you end up paying fifty percent or even sometimes lower, of your outstanding balance to them.

Question: Please help! Credit card debt!
Over the years I have acquired a lot of credit card debt. I was paying my cards just fine but then suddenly lost my job. Ever since then I have not been able to even pay my minimum payments. I want to get out of debt and improve my credit. Can anyone recommend a good credit consolidation company that I could contact for some help?

Answer: Call National Foundation for Credit Counseling or search their website for a credit counselor near you. Credit counselors on this site are there to help you — not to make money for themselves. They will assess your situation and help you.

Please do not go with a company that promises to reduce the amount you owe. They often advise you to stop paying your cards so they can get a settlement for a smaller amount (that will ruin your credit).

Question: Is a debt consolidation loan different from filing bankruptcy?
I want to consolidate my credit card debt with the hopes of averaging out a lower apr. Negative effects of consolidation loan on credit?

Answer: Debt consolidation and bankruptcy is two totally different things.

The biggest problem with a debt consolidation loan is that if you don’t solve the problem that caused the need for it to begin with you could very well be forestalling bankruptcy. Get rid of the credit cards, budget your expenses, live within your means.

Question: Which is a better route, a “debt- consolidation loan” or a “personal” loan to pay off credit card bills?
How does either loan affect credit scores etc? Which one tends to get the better interest rate? Any reccomendations on what financial institution to go through? How much money do you need to make to take out approx. 10k?

Answer: Your options depend on your income and your credit. Higher income and better credit will enable you to get better loan options. Poor credit and low income will push you into finance company loans and other sources of high interest debt.

There is actually no difference between a debt consolidation loan and a personal loan. You can use a loan for debt consolidation or any other personal use.

Question: Any options besides Debt consolidation?
I have about $23,000 total in credit card debt. I have great credit just too much. Total is probably 6 different credit cards. I am interested in debt consolidation thinking that it will help me pay these off faster. I have canceled all of my credit cards and will never open another one. Is there any other option or is debt consolidation my best option?

Answer: The key is, will debt consolidation result in a lower interest rate or simply a longer period of time to pay off the cards? Pay the minimum on the low interest cards and apply all the funds you can to the highest interest card to pay it off first.

Do you own a home? A home equity line of credit may make sense if it helps you pay off these bills and you can control your spending afterwards. Go to a credit union that you qualify for and see if they have credit counseling; many do. They may be able to give you a loan for your debts that will result in a lower interest rate overall.

Most US people are tensed as they are unable to pay off the unpaid sum of money. One of the key payments one needs to make is for his credit card. There are innumerable banks that issue the credit cards and when the money is not paid in time, they start nagging the payer. In some cases, the debtors declare bankruptcy in order to get a debt relief. This is because most of these payments come under the unsecured mortgage. When you file bankruptcy, these are surely written off. Now Obama’s Stimulus Package 2009 has made an attempt to stop this wrong means of getting rid of the payments.

Credit Card Debt Forgiveness

It refers to any process that helps you pay off the due amount but in parts. The payer in such case requests the bank or the lender to allow you some time to make the payments. Then you clear it up slowly and steadily. The best way to do so is debt consolidation.

Here are some details of the same:

· Debt consolidation is almost like refinancing. In this case you centralize all your debts with one bank. This helps you save the money paid as the rate of interest. This also helps you get some personal loan to pay off at least half the amount of the credit card debt. Once you pay that sort of lump sum, the other can be paid in easy installments.
· While looking for consolidation plans for credit card debt forgiveness, you shall come across two types of plans.
· For the home owners the deal might get cheaper & simpler. They can keep the house as collateral security and can get any amount at lower rates of interest to pay back.
· On the other hand, the one who do not have that strong collateral security, would get a big amount as loan at a higher rate of interest.
· In case you take up debt consolidation with your house as the security, the taxes on your debts are written off. This benefit is not even available to those people who get forgiveness of the money from the lender himself. This is because the law treats the spend amount as an income for which you must pay the taxes.

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Credit Card Debt Consolidation FAQ:

Question: Anyone had luck with a credit card consolidation company? Have you really eliminated your debt?
I’m talking about these companies you hear on TV/radio that ‘claim’ they can negotiate your balances and cut your debt up to half and have you completely out of debt in a few years? What if any companies have you found that have actually done this?

Answer: All I have heard are nightmare stories — my advice to you is run not walk away from any of these companies!!! Example, they will tell you to not pay your bills which in turn will make the credit card companies post all kind of true but awful remarks in your credit report which will lower your score and than the company will try to settle with the credit card company and all the time you are pouring money into them so they can destroy your credit. The best option for debt trouble is negotiating your debts with your credit companies yourself to keep the payments from swallowing all of your income.

Question: Where is the best place to go for a debt consolidation loan that won’t hurt my credit?
I have a ton of revolving debt (mostly credit cards) and just bought a house 5 months ago so I don’t have much for collateral. I’ve already been denied by a bank so is there anywhere I can turn to for cosolidation purposes that isn’t going to kill my credit? I want to consolidate my high interest credit cards onto a lower interest loan and need suggestions.

Answer: You are headed in the right direction. Go to another bank, and another if they say no. The wrong thing to do is give-up. Make sure that whoever you go to provides money, if they have a fee that you have to pay up front, they are a CON.

As long as your interest is under 12.5% you should accept it, even if they place a lien on your house. HOME EQUITY LOAN is good for you, it is deductable on the taxes.

Question: Is it bad for your credit to use a debt consolidation company?
I owe more than $15K in credit card debt with mostly high interest. This doesn’t even include my student loan payment, car payment and all of my living expenses. I’m living paycheck to paycheck trying to pay them down and it’s moving so slowly – almost barely at all! I have really good credit (still have available credit on the cards and pay more than minimum well before the due date) but I let myself get into way more debt than I can pay back. Should I consolidate? If I do, I’m assuming the consolidation company will pay off my balances at an agreed upon “settlement” – which would hurt my credit, right?

Answer: STAY AWAY from “debt consolidation” companies that promises to cut your debt in half through debt settlement. This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator, this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. You can never predict how your creditors will respond to the deliberate defaulting of your accounts, they might settle at 50% or they might serve you a summons, take you to court and if they win, you could be looking at wage garnishment. None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.

A better option is entering a Debt Management Plan (DMP) with a non-profit credit counselor like CCCS (Consumer Credit Counseling Services). Contact your local Red Cross for a referral. They can negotiate lower payments and interest rates. They do not negotiate settlements.

Question: What is the easiest way to consolidate credit card debt?
I have two credit cards that have about $8,000 in debt between them. I am serious about paying them both off, and pretty much will go as far as starving to get it done. It would just be so much cheaper and easier if this was one bill instead of two. I have played the balance transfer game, but at this point it seems like adding another bill would be more problematic than consolidating. I just don’t know how to do it or who to trust.

Answer: Consumer Credit Counseling. They’re nonprofit, and universally recognized. They can usually get creditors to reduce interest. They helped me get my finances right after my ex-wife ran up our joint credit cards and split. DO NOT go with a consolidator that charges a fee!

Question: Is credit debt consolidation really helpful in lowering your bills? Is there a down side?
Have too many credit card bills, I want to lower the charges without damaging my credit.

Answer: If you are thinking of using one of those debt management companies, be extremely careful and check them out thoroughly. Many of those companies may leave you in worse shape than you are now.

Bypass those companies and get a loan on your own to pay off the credit card bills. Not only will you be saving money by not having to pay that company, you will be saving money on interest, since you can probably get a short term loan for a much lower interest rate than your credit cards have.

Question: Are there any legitimate credit consolidation companies?
I’m looking to find a legitimate credit/debt consolidation company. I need to consolidate about $9k in unsecured debt from both credit cards and student loans. None of the payments are past due at this time.

Answer: In truth there are legitimate loans for debt consolidation but not really companies. Most companies doing this are frauds.

Do some careful checking of your numbers. I suspect that the student loan is far cheaper left alone than combined with others. Also 9K of debt is so low you could simply pay it off if you were serious in short order. Consider all alternatives first. Debt consolidation is nothing more than a “con” because you think you’ve done something about the debt problem. The debt is still there, as are the habits that caused it – you just moved it! You can’t borrow your way out of debt. You can’t get out of a hole by digging out the bottom. True debt help is not quick or easy.

Question: Which is a better route? A “debt- consolidation loan” or a “personal” to pay off credit card bills?
How does either loan affect credit scores etc? Which one tends to get the better interest rate? Any recommendations on what financial institution to go through? How much money do you need to make to take out approx. 10k?

Answer: Your not solving your problem. Your just relocating it so it looks like it is in check. Just pay off your credit cards and then cut them in half and throw them away. Your still going to have an interest rate no matter how you do it. Your best bet is to try and make as big of a payment as your budget will allow each month and pay them off. I strongly suggest getting rid of them afterward and don’t use them while your paying them off cause you’ll just be adding insult to injury.

Question: In credit card debt-any suggestions?
Real estate was horrible this year and I have gotten into debt w/credit cards. Haven’t been using them for a while but the minimums are killing me. I have done balance transfers and its just not helping. I don’t want to use the house equity and I don’t want to use debt consolidation because it affects your credit. Any suggestions? PS. husband doesn’t know.

Answer: Be honest with your spouse. You will not be able to fix this as long as you’re hiding it from the most important person in your life. He might be mad, but you’re working on ending your marriage if you don’t fess up ASAP. Then the two of you can sit down together and look for spots where you can cut back on spending to work on paying off these cards. You might need to take on a part time job to help pay the bills, but certainly start writing down everything you spend and work on cutting back on anything unnecessary.

Debt consolidation companies work to reduce your monthly payment, lower interest rates, have fees removed, and lump your payments into one monthly bill. Instead of trying to come up with several different payment, each and every month, you’ll only have to worry about one. Debt is so much easier to manage, and pay off, when you have a reliable debt consolidation company working for you.

Worrying about excessive debt can cause a lot of stress, which can lead to depression, marital disharmony, fatigue, and other negative health risks. By obtaining a resourceful debt consolidation firm, you’ll alleviate the worry of paying your bills and literally turn your life around. Bothersome collection calls will come to a halt, and you can feel free to enjoy life again.

Don’t just settle for any debt consolidation firm, though. If you obtain the services of an unprofessional agency that cannot answer your questions adequately, they will be of no assistance to you. You need a reputable agency that will work for YOU and make a positive difference in your financial future. By investigating several options, you can find the one that will work best for you. Here’s some things you’ll want to look for:

- A company with a good reputation that is certified in their field.
- Low rates.
- Qualified debt consolidation specialists that offer personal debt management.
- A company that will work with your specific financial situation.
- A company that is clear with the Better Business Bureau, and has no complaints against them.

Once you have selected a debt consolidation team that you are comfortable with, arrange a one-on-one meeting and work in a financial plan, clear and concise about your credit card debt.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website – where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

Credit Card Debt Consolidation FAQ:

Question: Credit counseling or debt consolidation? So confused!
My husband and I are in credit card debt of 35,000… medical bills around 1,800 and school loan about 5,600. We are stuck right now and really don’t want to file bankrupt. My question is since we are paying things on time can we even do credit counseling or debt consolitation? I heard that you need to be behind on your debts, is that true? And what is the difference between credit counseling and debt consolidation?

Answer: Be careful, the dirty little secret about credit counseling is that most are actually collection agencies. They collect the debt for the bank, at usually pennies on the dollar, then turn around and get you to pay say 60 cents on the dollar, the difference is their profit.

Credit counselors do NOT work for free, and most make lots of money and are unscrupulous, so be very careful. They promise you the moon but can’t always deliver.

Not all banks go along with the CCC program, and many will negotiate with you directly at a better rate, if you just ask.

There is no simple answer just be careful, and research the company you choose thoroughly.

Question: How do credit consolidation programs work? Are they worth it?
My bf has about 14000 in various credit card debt. Most of it interest. What credit consolidation programs (if any) would be worth looking into?

Answer: Debt consolidation programs can work but it requires research to determine what the programs offer. The best ones offer, which should be included and not a separate fee, counseling or personal finance advice particularly how to establish and maintain a budget. The biggest thing to remember is that for debt consolidation to work a person has to stop using the credit cards or incurring more debt.

Question: Where can I get a Debt Consolidation loan for my credit cards without owning a home?
I am looking for somewhere to get a consolidation loan for my credit cards even though I dont own a home?

Answer: Are you a member of a credit union or do you qualify to join one in your area? If so, check with them about debt consolidation loans. If you can’t join a credit union, talk to your bank or investigate banks in your area that may have loans. There are programs out there that don’t require a mortgage. Typically, they allow you to borrow up to a certain percentage of your salary.

Question: We have $8,000 in credit card debt; we live in GA. What’s the best non-profit credit consolidate. company here?
We live close to Blue Ridge. APR on credit cards are 23%. We are looking for a credit consolidation company that will help us lower APR

Answer: You aren’t looking for consolidation — that’s taking out one big loan to pay off the small loans. You want credit counseling. Check for a NFCC member in your area. These are legit, non-profit companies that offer debt management programs. They don’t settle your debt. The negotiate lower interest and payments so you can pay off your debt.

While in the debt management program, it will be noted on your credit. However, upon completion, that notation will be removed and you will have decent credit.

Question: I have been with a debt consolidation for about 14 months, now I’m being sued by the credit card. What do I do? Do I need to find a lawyer? The debt company is telling me not too. Do I contact the law firm suing me? What are my options as a consumer?

Answer: Debt consolidation? Sounds like your in a Debt settlement plan. Debt consolidation will pay your debt monthly. Creditors don’t normally sue when their getting paid monthly.

You should have a whole lot of money stashed away after 14 months. Do you have any funds to resolve the situation. Is the settlement company contacting the law firm? Have you been issued a summons? If so you need to respond to the summons. If you have been served and you ignore it then you will have a mess to deal with.

Chances are you were mislead when you signed up as a client. Happens all the time, now that you know what the stakes are you need to be proactive and find out whats going on. This is your financial future, you have a right to know.

Question: Need to pay off credit…is a consolidation loan the best way to go?
I am $11,000 in Credit card debt. Would like to pay it down as quickly as possible at the lowest rates possible. NO DEBT CONSOLIDATION COMPANIES!! Was thinking about going to my local bank and asking for a personal loan, but I don’t own a home. What are my options??

Answer: Your best option is to just pay down the cards yourself. Pay the minimum on your cards. Then, starting with the card with the highest interest rate, pay it down first. Once this is gone, pay down the card with the next highest interest rate etc. until they are all gone. This minimizes your interest.

Question: Credit Card Debt Pay Off Advice?
I have several accounts in collections due to late payments and what not. Right now I am in a position to pay off the 8,000 dollars that I’ve accumulated and was wondering if anyone could help me find a suitable debt consolidation company.

Answer: There is no reason whatsoever to use a debt consolidation company if you have already defaulted on your debt.

If you’re going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest, rock bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report, regardless of whether the charge-off is paid or unpaid. …Offer 25%

DO NOT admit in writing to owing the debt…if you do you might trigger a lawsuit against yourself. Offer 25%. Mail them a vaguely worded statement.

Question: Does consolidation of credit debt appears or has a bad effect on credit history?
Is there any way to consolidate credit card bills and past due debt without having any bad effect on credit history?

Answer: The past dues only affect your credit if the credit lender reported it to the credit bureaus.

Debt consolidation has been seen to be the best way to obtain financial freedom. People who have been juggling from one debt to another see this as a way to totally eliminate the problem. Debt Consolidation has been known to have two types, unsecured and secured debt consolidation. Recently, debt consolidation has now been used to consolidate debts acquired from different credit card companies. Unsecured credit card debt consolidation is the type of debt consolidation usually considered as means of handling credit card debts because it does not require collateral.

Unsecured type of debt consolidation offers the same idea as of the secured one. It technically just sums up all credit debts into one easy single monthly payment with no collateral involved. That is why most people think that unsecured type of debt consolidation is their best option. Since no collateral is involved, the debtor will not worry about any repossession. Common collateral used are house, lot and car and is usually repossessed by the time the debtor failed to pay the dues.

This type of debt consolidation has the fastest processing time making it more convenient for debtor to easily get approved. It will surely work to their advantage since no evaluation or assessment is needed before the loan gets approved. Truly a time-saver and hassle-free, with the loan getting approve quickly, the debtor can easily tend to all his credit card debts in the least possible time. The fact that the process is easily approved only means that there is less or no documentation needed at all. You can avoid all the troubles of preparing needed documents and waiting queues. Most debtors if not all target to refinance their credits as soon as possible, so if there is no documentation needed, this will again work to their advantage. With all the benefits being offered by unsecured loans, surely people will be adamant about applying for this kind of loan.

On the other hand, the most foreseen downfall of unsecured credit card debt consolidation is the payment of a higher interest as compared to the lower interest rate being offered by secured one. But it totally makes sense, the fact that there is no collateral involved; lenders are taking a huge risk in lending you the money. To cover this up, a higher interest rate is given. Collaterals serve as assurance for the money being lent but since it is absent in this type of loan, you need to make sure that you have obtained a clean credit history to be considered.

Still the best way to be out of debt is self-control and proper handling of finances. Even if there are institutions that are willing to be of service to those who have been caught in a never-ending spiral of debts, this should not be an excuse for causing such financial mess. The unsecured credit card debt consolidation is no doubt one of the best options to pay off credit card debts; make sure to put into consideration its advantages and disadvantages before deciding to apply. Financial freedom could never be achieved if you do not refrain from the uncontrollable and unwanted spending. Remember that you hold the key to unlock a life without debts.

Learn more about unsecured credit card debt consolidation Find comprehensive information about the best ways to deal with overwhelming debt at http://www.debtconsolidationhelp.com

Credit Card Debt Consolidation FAQ:

Question: What is the best solution for unsecured credit card debt?
No home ownership. Debt settlement vs. consolidation? Too many companies to choose from & they all boost their offers! Scam or legitimate?

Answer: If I understand your question, you are having difficulties making the monthly payments on your credit card debt. Consolidation is not really a good answer because your credit score is probably pretty low right now and if you can get one your interest rate will be pretty high. You also have those credit cards still available and you could (and most people that go this route do) end up running up the credit cards again. Now you have twice the debt and no solution.

There are a bunch of scams out there and a lot of people that will try to rip you off under the guise of repairing your credit. Go with a reputable organization that will help you and not rip you off. I have worked with Consumer Credit Counseling Service for a couple years and they have been great. They can help you work with your creditors to reduce payments and interest and they have educational information to help you to manage credit better.

Question: Do court systems force people who have no ability to pay unsecured credit card debts?
My wife, just out of pregnancy with a newborn, is being sued by Capital One for a $2000.00 credit card debt. We offered to pay the minimum but they refused. I’m unsure if I could even afford bankruptcy. We have a large mortgage, living expenses with no disposable income for any debt-consolidation. Facing pending foreclosure. If we are summoned to appear before the court, what would the court possibly expect us to do except what we could afford to do? What could we expect from the court from credit card company suits?

Answer: Is your wife being sued? Or are there just threats of a law suite. If you were being sued, you would have already received a summons to appear in court, which sounds like you have none.

If you indeed wind up going to court, you can petition the court for a settlement for Penny’s on the dollar. Capitol One will try and get the whole amount and make you believe you have to pay the entire amount, but what they want and what they get are two different matters.

Question: I have 67,000 in credit card debt. I am going to a consolidation/counseling place, how much will my payments probably be a month? I make 97,000 a year but have 2 kids in college so money is tight. And how many years do you get to pay those payments off?

Answer: If you were to pay $400 a month and had to pay only your debt with no interest, it will take you about 13 years. So, stick the interest on top and good luck.

Question: Getting out of high interest credit card debt?
We have a high balance on some high interest rate credit cards. We own our home, I am wondering if there is any tips or info on refinancing and including our credit card debt into the refinance or debt consolidation. I don’t know much about it. How much is normal to be charged for these things? What is a good trustworthy business to go through? What are my options? Am I just going to get myself into deeper debt?

Answer: A home equity loan will be at a much lower interest rate and you can write the interest off your taxes. This will be a delaying tactic unless you change your spending habits.

Cut up the cards but don’t close the accounts it can hurt your credit rating. When you do pay off your cards, they will up your limit, send you checks, etc. Your monthly payment on your equity loan will save you a lot of money, versus the finance charge on the cards. Find a debt consolidation company that is not-for-profit, many states regulate this business.

Question: Debt consolidation will leave you with a huge debt ratio, and close all your credit cards?
When you consolidate debt, it shows all old debts as being paid, etc, but the one new debt ratio, which is the amount being owed to the consolidation company will be huge. QUESTION: Does It lower the credit score to have a huge debt ratio like this?
OTHER QUESTION: and you also want to have say, 3 credit cards, (3 of them is the number you want to have a good credit profile, right), then the debt consolidation companies close your credit cards or do they not? How does it work?

Answer: The temptation is to have lower payments, but that does mean you’ll take longer to pay off the debts, and so you’ll end up paying a huge amount more in interest rates over time. Possibly thousands more.

Be careful–think this through very carefully and do the math.

Question: Debt Consolidation Company Referral?
I’m looking online for a credit card debt consolidation company and would much rather go with a referral from someone rather than randomly choosing one that “looks good.” Any suggestions?

Answer: The Better Business Bureau is a great place to go for referrals. They can show you local agencies that you can visit in person as well as to identify those which have the best record of satisfaction.

Question: Debt consolidation vs just paying credit card? What would you do if you were me?
Which is the better route to take?

I have $21,000 in debt spread out between 6 credit cards. I don’t use my cards anymore and I can probably pay this off in 2 1/2 years if I make $1000/month payments.

I called a debt consolidation company and they are willing to take on my case. They said they can reduce my debt to $11,700 and reduce my monthly payment to $326/month for 3 years but it will temporily hurt my credit score because they will settle with the credit card companies. My credit score is 704-740. I hate to see that happen but I’m kinda struggling.

Answer: Debt consolodation is as bad or worse than bankruptcy and it will hurt your credit for a long time, as most of the CC will report it as charge off.

Question: Does debt consolidation of credit cards lower your credit score?

Answer: If you enter a Consumer Credit Counseling Service (CCCS) plan, yes it will lower your score at first, but if you complete the plan it will raise your score. A CCCS plan is one where you pay them and they pay your creditors. Be careful though, CCCS is reputable but many are not. if you go with an out fit that says they will “settle your debts” for less than what you owe, your score will go down the drain.

Many debt consolidation organizations do not have a set minimum amount that they will work with, but most reputable and experience professional experts in this field will tell you that there are minimum amounts that are set based on a practical study of a person’s situation. This is where employing the services of a reliable professional counselor comes in very handy, and where you can benefit from their experience and expert advice.

If you are not that buried in credit card debts and your debt to income ratio shows that you could probably take care of your financial obligations on your own, then your advisor will present this to you as an option. Taking on a new loan to eliminate your indebtedness is a big step, and you want to be sure that you really need to take that step before you sign any agreements. If your money owing is in such a way that a few more dollars a month and maybe a second job on your part will solve the problem in six months or so, then that would be the best solution for you.

Sometimes you can feel like you are buried in monthly credit card debts when in reality all you need is a plan based on your current income to help you out of your situation. Your debt consolidation company can look your situation over with you, and determine a course of action that will benefit you now and in the long run. Remember that they want you to be a satisfied customer giving out referrals to the people they know, so while there may not be an expressed minimum there are parameters to consider.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website – where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

Credit Card Debt Consolidation FAQ:

Question: What is the best way to resolve credit card debt?
My husband and I are struggling to pay our mortgage, two car loans, consolidation loans, two credit cards, student loans as well as medical bills for new baby. Should I see someone in a CCCS organization, or just try to stick it out for as long as I can? Our debt to income ratio is now 74%, by the way.

Answer: As long as you’ve been making payments on time, you probably shouldn’t get credit counseling because it will be a bad mark on your credit.

Pick your card or consolidation loan with the highest interest and put all the extra money you can into paying it off, making the minimum payment on everything else. If you get a chunk of money from a tax refund or whatever, put it towards the highest interest card. When you have that one paid off, take what you were paying monthly towards that one, and now use that money to put towards the next card, in ADDITION to what you were already paying the next card.

Do research on frugal living and money management to find out exactly where your money is going and tips on how to reduce your day to day spending on food, groceries, and other extra items. You can find all kinds of ways to reduce your spending by finding cheaper alternatives to the things you buy every day or every week.

Question: What resources will provide us with honest Debt Consolidation of our Credit Cards?
I’m looking for companies or Non-Profits that will help, not hinder in this process. I would prefer to pay the debt off in 4 years, however, the problem is we might need the Credit Card in case of an emergency. NOTE- Some services require that you cancel the card once paid off and/or suspend the credit while paying this debt off.

Answer: Get out of debt on your own…downsize your life style and get rid of wants now and take part of the money and put in a rainy day fund for emergencies!!! Give everyone an IOU for Christmas and use that money to also reduce debt! I have faith you can bounce back…yes it will take hard work and time but you can do it.

Question: I am looking for information based on bad credit consolidation or a credit card that has at least $7500.00 credit limit. I’m wanting to combine/transfer all of my existing credit card balances onto one credit card and have only one monthly payment. Does anyone know of a credit card or a trustworthy debt consolidation company? I would like to take the credit card route only because it’s faster and easier and there’s not a million questions, but any advice would help. I need to get this done as as soon as I can.

Answer: Debt consolidation is an option, and you should look into it. Just be careful about WHAT you’re getting into. Some plans, because of their higher APR rates get you into more trouble than you were.

Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.

Take a good hard look at all the options and plans offered, and don’t let a single company pressure you into something you just can’t do. Make sure that you’re comfortable with the plan offered before you commit to it.

Question: I signed up with a debt Consolidation company. One of my credit card company’s says no deal-I must still pay the minimum payment of 2.15% of the outstanding balance. Well of course I cant that’s why I am doing the debt managment. So in other words unless I pay them what they want per month they wont accept payment is what I was told. Do I have any recourse? Because the only other option is to just not pay them.

Answer: No you don’t. Your credit card carrier is under no obligation whatsoever to accept settlements or any other agreements from debt settlement or negotiating firms. If you can’t pay 2.15% of your balance that’s not a good sign. I can’t see where a private firm or even CCCS can negotiate a lower payment agreement than that.

Question: Can someone tell me the best way to pay off credit card debt?
I am open to debt consolidation loan or whatever. Whats the best way and who do I need to contact?

Answer: You can try to get a consolidation loan but beware of the biggest pitfall with this…continuing to use the credit card(s). The best plan is to pay off the smallest balance first. Next, take the money you were paying to that account and apply it to the next largest balance. Continue with this process until you are free from debt or in better control of your finances.

Question: How can I consolidate my credit card debt if it is less than 2000?
All of the debt consolidation places I’ve been to you have to have at least 2500 in debt…do I need to wait till it gets that high?

Answer: Most balance transfer offers will accept a smaller amount. However make sure the transfer fee does not wipe out the advantage of the lower balance transfer rate.

Question: Do debt consolidation companies pay off credit cards that are already in the hands of a law firm/collector?
Chase filed a law suit against my husband for a delinquent credit card. He never had to go to court but they (the law firm) wanted $300/mt until the card was paid off. We’re still paying on it and it’s a huge budget buster! We only have a few other outstanding/low amount bills. I was wondering if debt consolidation companies would consolidate this Chase bill as well so we can get these people out of our lives!

Answer: Well you could borrow the money from some other source. The source would make a check payable to Chase and the other folks you owe money to. But do not fall in the trap a lot of folks do…they are out of debt except for this one big debt and than they take there credit cards and go on a spending junket.

Question: Is it worth it to use a consolidation loan to pay off mounting credit card debt?
I am thinking of applying for a consolidation loan to pay of my credit card debt. I owe much more than I can pay even though I have a full time job with a fair income. Has anyone out there dealt with a consolidation loan? Did it help you or not?

Answer: A consolidation loan can be a very useful tool, but only if it is managed properly. I got a consolidation loan earlier this year, and it has really helped in that I now have lower monthly payments. However, the only way a consolidation loan will be successful is if you cut up your credit cards. If you get the loan, pay off your credit cards and then begin using your credit cards again, you’ll be in even worse trouble. You have to cut up those credit cards.

Debt consolidation companies advertise their ability to condense all of your debts into one bill each month. Sure, that sounds really nice. But is that sort of option even feasible? To you, you are just taking on another debt to get rid of debt. Sounds like a mess of contradictions, does it not?

Unsecured credit card debt consolidation has proven to work for many, many people. But, some of us would rather try to remedy our struggles with debt on our own. These people have a mindset that essentially tells them since they got themselves into all of these problems in the first place, it’s on their shoulders to get themselves out. You can call it taking initiative. But whatever you call it, you must face the inevitable realization that, somewhere along the way, you will need some help. That doesn’t mean you shouldn’t be wary of the business practices of your potential helpers.

The turn-offs of unsecured credit card debt consolidation

When you take a peek under the hood of debt consolidation you are sure to find the possibility of many seemingly easy fixes. Initially, you are probably shocked at the possibility that someone has the power to package all of your loans into one monthly bill. But human nature can be a cruel beast from time to time. Sometimes, debt consolidation companies fall short of glory by only meddling in other people’s business for the sole purpose of personal gains.

Watch out for these two red flags:

Our loans are easy to obtain
One of the biggest myths in the world of unsecured credit card debt consolidation is that the loans are extremely easy to be approved for. The fact of the matter is that if you really needed the loan in the first place, chances are you do not have a particularly esteemed credit history. People who are already in a deep hole with piles of loans on top of them are sucked into debt consolidation thinking it will be their one and only saving grace. But, contrary to what certain programs will promise you, these loans are not always easy to obtain. In the event that a debt consolidation loan seems to be overly simple to obtain, you ought to be very suspicious of the intent of the company that you are dealing with.

We promise to take care of everything. Don’t worry about it!
Another myth that fraudulent debt consolidation companies enjoy baiting potential customers with is that they will magically fix all of their customers’ problems. Debt is more complicated than saying a few simple words and waving a magic wand. Don’t let a company trick you into believing a company will reduce your interest rates and monthly payments without any need of your opinion. You need to take part in your debt consolidation plan if you are going to go that route. A company simply does not have the power to do it all for you without you putting any work into it yourself.

Taking initiative in your quest for the elimination of your debts is a very respectable decision. However, you need to remain diligent throughout the process of your debt consolidation if you want to come out successful on the other side. Communicate with your unsecured credit card debt consolidation organization daily to make sure everything is going according to plan. The opportunity for you to get involved in the shaping of your financial future, even if you are in a heap of debt, is still wide open. Don’t let a company steal that opportunity away from you.

If you would like to read more about debt consolidation, credit card consolidation or any other financial information visit credit card consolidation loans

Credit Card Debt Consolidation FAQ:

Question: How can I resolve my $40,000 credit card debt.?
I have about $40,000 debt from 3 different credit cards and would like to know my options on getting rid of this debt, considering my credit score is already down the drain. At this moment, I’m not concern about saving my credit score anymore. I can deal with the bad credit for 7yrs. Should I work with a debt consolidation company or stop payments and deal with the creditors directly? Hoping that they will reduce my balance.

Answer: STAY AWAY from “debt consolidation” company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

Question: What is a good credit card consolidation company to go to? My debt is about $6000.

Answer: Do it yourself and save the fees and headaches. You should be able to clear that up within 2 years.

Start with the highest interest debt and put every penny you can squeeze out of your budget on that, while paying the minimum on everything else. When the highest interest rate debt is paid off, move to the next till they are all paid off.

Cut out the extras and concentrate on clearing up your debt.

Question: About getting a loan for credit card debt elimination…
I’ve had a company called CDS contact me about debt consolidation of my credit cards. Does anybody know if they’re reputable or a scam?

Answer: Consolidation is combining your debt to one easy payment, usually at a lower rate. They can loan you money at a lower rate than what you owe your creditors and payments are spread over a longer period of time. Check with the BBB first to see if there have been complaints filed on them.

Question: Credit Card Debt Consolidation?
These companies that offers debt consolidation and credit management, do they really cut your credit card bills to 40%?

Answer: Most of them are bogus. What they offer is to negotiate with your creditors to reduce your payment but from what I read in an article in Business Week, many times they do not succeed. This sometimes takes months and these companies will take your money in advance. Eventually, you will be stuck with late fees plus the original amount. So do not go for this.

Instead go in for credit counseling. The counselor will work out a debt management plan if you qualify or work out an alternate plan.

Question: What is the fastest way to get rid of credit card debt?
I’m not talking about those debt consolidation programs, where they settle your debt and you make payments to them. That actually adversely affects your credit. But what other ways are there?

Answer: Pay the minimum on all cards except one. Put every extra penny you can find towards paying off that first card. As soon as that card is paid off, close the account. Then add everything you were sending to the first card plus the minimum you were already paying to the second card. Start with either the card with the smallest balance or the one with the highest interest rate.

Question: What is the Statutes of Limitations in Florida for credit card debt?
I have a debt that’s over ten years old and a collection company threatening to sue. I think they’re fishing. The last payment was made around the year 2000 through a credit consolidation company. Nothing since. I didn’t agree to pay them anything, I didn’t say that I owe the amount they claim but I also didn’t deny it.
Is this something I should worry about?

Answer: In Florida the limit is 4 years. If it’s been 9 years since you made a payment, and you’ve lived in Florida the entire time, you can tell them to pack sand. If they make any threats at all tell’em you’re going to file a complaint with the Federal Trade Commission.

If you lived in Florida, then left the state, then came back, the time you lived outside the state does not count toward the 4 years. So the time stops, then starts again when you come back.

Question: I have 40000 in credit card debt, what is the best consolidation company to work with?

Answer: The idea is to find a loan at less interest than you pay now, and fixed interests.
Whoever you go with, you should always check if they belong to the ABA or at least the BBB.

Question: Credit card debt consolidation??
What is the best and most trustworthy company/organization that does credit card debt consolidation? Which companies should I avoid?

Answer: Anything non profit is a good way to go. Try www.nfcc.org. That is a wonderful resource. They have several accredited non profit credit counseling agencies on that web-site. You can probably even find one in your area.

How many times have you heard a person saying that credit card debt consolidation is the best way to get out of debt? You must have heard it many times but you may not be aware of the fact that there are certain things that should be taken into consideration before going for this particular option.

Actually, debt consolidation is a form of combining your high rate debts into one single debt having lower interest rate. Most people don’t believe that it can actually happen in reality but it’s a fact that you can consolidate credit card debt to enjoy a lower interest rate. By the way, it is no magic as the duration to repay your debt is extended by negotiation and that’s the reason why you can afford to pay a lower interest. But, in reality, you may end up paying more, especially if you are not working with a right company.

While working with unscrupulous companies, you may have to deal with several issues. In fact, there are people who have been sued by their creditors only because their debt consolidation companies were scam. In this situation you can not blame the creditors because there remains no other choice for them to receive unpaid bill but to go for collection agencies.

Here, it is also crucial to mention that not all companies are fraudulent. What it means is that the option of credit card debt consolidation works for many. But, there is something that can hurt the benefits associated with a debt consolidation program. This something is the temptation to use your credit cards again after getting in a consolidation program. This is probably the worst mistake that a person makes after getting helped by a credit card debt consolidation company.

You must keep in mind that if you want to get rid of your debt, you need to think a lot before making any purchase through your credit card. In fact, it is wise to stay away from credit cards until you get out of your debt. The best way to shop after getting into a debt consolidation program is debit card. Or, you can use cash, which is the best thing to do to avoid getting deeper in debt.

The fact of the matter is that there are lots of reasons why credit card debt consolidation is a good option to get out of your debt but there are some strings attached to this particular idea. So, if you want to make life better for you, it is essential to find a better company to get into a debt consolidation program. Plus, you need to change your spending habits as if you will continue to use your credit cards, nothing on earth can bring you out of your credit card debt.

For a perfect credit card debt consolidation program visit consolidate-bills.com as it is the best site offering help to those who want to get out of their loans by paying less money as monthly installments.

Credit Card Debt Consolidation FAQ:

Question: Where can I get a Debt Consolidation loan for my credit cards without owning a home?

Answer: Are you a member of a credit union or do you qualify to join one in your area? If so, check with them about debt consolidation loans. If you can’t join a credit union, talk to your bank or investigate banks in your area that may have loans. There are programs out there that don’t require a mortgage. Typically, they allow you to borrow up to a certain percentage of your salary.

Question: Loans for credit card consolidation?
A friend mentioned to me that there may be some 0 interest programs out there for helping with debt consolidation. Anyone have any ideas?

Answer: None.

Better to try and roll the cards together and pay off the debt as you can.

Most any program that says it can eliminate your debt is on the scammy side. They want like $2500 up front to do it.

Question: Need to pay off credit…is a consolidation loan the best way to go?
I am $11,000 in Credit card debt. Would like to pay it down as quickly as possible at the lowest rates possible. NO DEBT CONSOLIDATION COMPANIES!! Was thinking about going to my local bank and asking for a personal loan, but I don’t own a home. What are my options?

Answer: Your best option is to just pay down the cards yourself. Pay the minimum on your cards. Then, starting with the card with the highest interest rate, pay it down first. Once this is gone, pay down the card with the next highest interest rate etc. until they are all gone. This minimizes your interest.

Question: Credit card debt – payoff options?
I lost my job just before major surgery and took 2 years to recover before I could return to my previous income level. During that time I incurred considerable CC debt – $25K. I’m now back at work and I have substantially increased my salary but because of some slow pays and maxed out cards my FICO has dropped 100 points and my interest rates have shot up to 30%! I expect to have enough extra income to pay off the debt in the next 2 – 3 years but I’d like to get rid of the high interest rate and repair my credit score. Will my new income level help my FICO score and help me get a low-interest card to roll everything over to? I don’t think I can get an unsecured debt consolidation loan for 25K… or can I?

Answer: Your income has NO bearing on your FICO score. The score is only in relation to your credit.

I don’t think a bank will give you a 25K unsecured loan and even if you found one the interest rate would have to be close to what you’re paying now to offset that kind of risk. You would have to borrow against equity in a home, car or retirement fund.

Since it seems you are in a Catch-22, I believe your only options are to either pay off the debt with the high interest or file for bankruptcy if you have no assets.

It never hurts to call your credit card companies and try to get your rates lowered. Explaining your situation and/or threatening to close your account may help.

Question: My credit score is 723..however, I just got a debt consolidation loan for $7,400…if I leave the credit cards open, which the bank recommends, will my credit score improve with the credit cards paid off but used only infrequently for small incidental purchases?

Answer: Your bank is correct.

Utilization accounts for 30% of your FICO score. Utilization is how much of your credit limits are you using. If you are at 90%+, they will lower your score for being maxed out. 30% is better. Less than 10% is best. What FICO looks for is that you use your credit and use it wisely.

Payment history is 35% of your credit score. Whether you pay in full each month, or just the minimum, make sure you pay on time, every time.

If you close your accounts, you risk your score going down, because it will lower your overall limits.

Question: Please help me, I need a personal loan to put credit card debt together?
I have $15,000 in credit card debt and I need a loan to help me put my debt together and make only one payment. My credit score is 615. Does anyone know who can help me with this. I don’t want the debt consolidation consultants.
I don’t have any late payment history or other negative input.

Answer: Instead try this. List all your debts by amount you owe from smallest to largest. Then begin by paying the most amount you can each month to the smallest debt with the idea of paying it off quick, and only pay the minimum payment on the larger debts. After you have that smallest one off, then start the next in line and go on from there. Every time you get any extra money, apply it against your debt even if you have already sent in a payment. Have a garage sale, sell on eBay, get a second job, anything to help you get money to apply toward that debt. It’s not about obtaining the best credit score, it’s about eliminating the debt.

Question: If you use credit card consolidation companies to help pay off debt, does this effect your credit rating?
I understand that no new credit lines can be open until debt is paid off using this service.

Answer: They do not trash your credit. What happens is all of your accounts show on your credit bureau as being “Managed by credit counseling”.

This doe’s make it harder to get more credit while you are in credit counseling but not impossible. I get people approved every week to buy a car that are in credit counseling.

I would recommend Consumer Credit Counseling Services. They will work with your creditors to lower both your monthly payments and your interest rate. I used them several years ago and was debt free in 36-months.

Question: Where can I go to get a consolidation loan to pay off credit card debt without having to cancel cards?

Answer: Not a good idea if you are trying to get out of debt. The loan will only put you further into debt and by keeping your cards open you are likely to keep using them. It would be better to work with the credit card companies and get them paid off by yourself without gaining more debt.

Remember signing up for all those credit cards promising easy credit? You didn’t have to see a loan officer and try to convince them to give you a loan. You didn’t have to fill out a long application. All you had to do was sign your name and you got a little rectangular piece of plastic.

You were in business! You could go out and buy everything you wanted but didn’t have the money to buy. You could party and cover all your friends. Until the bills came due, anyway.

It was very easy to get into debt. Not so long ago easy credit wasn’t so easy. But that was before credit cards. Back then people took debt much more seriously. Bankruptcy was pretty much unheard of. Well, maybe it was a long time ago.

Then easy credit showed it’s face. All you needed was a Social Security number and a job and you could get a card. I don’t know if you saw the story on the Internet about a man who got a credit card for his dog. It really happened, it was so easy.

But having a credit card didn’t necessarily mean that you had good credit. It meant you had easy credit. And that easy credit could turn around and ruin the good credit many people had.

When people get into serious credit card debt – debt that they can’t repay – they often seek out a credit card consolidation loan.

Credit card consolidation loans can be of great help to people are over their head in debt on their credit cards.

If it’s happening to you, you’ve got to go cold turkey with the cards you have. Stop using them until you pay off your debt. You can apply for credit cards again after you’ve paid off your debt. And you’ll probably get them and will have (hopefully) learned how to control your credit card debt.

To find out more about credit card consolidation loans, how to do a background check on debt reduction services, and more free information about debt relief go to http://www.FindReliefFromDebt.com now.

Credit Card Debt Consolidation Loans FAQ:

Question: Best source for credit card debt consolidation loans?
Whats the best place for this type of loan? Banks?

Answer: Start by calling the credit companies and working out a lower rate (if you’re current). Next, STOP SPENDING!!! Then – pay the minimum on all your cards but the one with the highest rate, use the money you saved from your decreased spending to pay that one off more quickly. Then use the money you were sending to the first company and pay off the next higher interest rate. Keep going until all your cards are paid. After that, if you can’t buy it with money from savings – YOU DON’T NEED IT!!

Question: Credit Card / Debt Consolidation Loans?
Could this help me? I owe about 12k on my cards right now.

Answer: Depends on where you are getting it. If you can buckle down and pay them you will be better off unless you have high interest and can get a lower rate. The reason it is better it is so your credit will survive.

I would pick the highest interest rate and pay the minimums on the others until that is paid off and then move on to the next one. Always pay on time and at least the minimum to survive bad marks.

Question: Consolidation Loans for Credit Card Debt?
Should I look into this? I owe about 6k, and the interest rates are terrible!

Answer: Do it yourself… there are a lots of credit cards with low APR for balance transfer. After the transfer, put the cards away and make monthly payments. If you want, try your bank. Stay away from internet debt consolidators. There is nothing they do that you can’t do it yourself.

Question: Debt consolidation Loan/Credit Card?
I have a bunch of credit card debt and am looking to consolidate it. I don’t use my credit cards anymore and I have a perfect payment history on all my accounts on my credit report. Never one late payment on anything. I am looking for some way to consolidate the credit cards to one loan with a reasonable interest rate since some of my cards are very high interest( over 21% for one of them). The problem is being in a lot of debt i don’t get enough credit when i apply anywhere to transfer the balances. I have some equity in my home but not nearly enough to tap into it or i could risk being “upside down in it” Does anyone have any suggestions how someone with a perfect payment history but high debt to available credit ratio can consolidate?

Answer: If you’ve never missed a payment then your best bet would be to call each credit card and ask to see if you could get onto an internal program. That will lower your interest and maybe even the payment. Keep sending the same amount, don’t send the lower payment obviously. But the internal programs are for a limited time only so ask how long it will last. Before you do that, you may want to check how much more you could pay a month. The other would be to consolidate with a debt management company but that would close all the accounts. I wouldn’t recommend it unless you feel you can’t afford the payments and expect to start struggling.

Question: What is the difference between credit card consolidation and loan consolidation?
I am confused. What is credit card consolidation? What is loan consolidation? What is a debt consolidation loan?

Answer: A loan consolidation and a debt consolidation are the same. A bank loans you enough money to pay off credit cards or loans (like a car loan). They group it all into one single loan through them (hence the word “consolidation”). So they take all your outstanding “debt” and put it in one single loan with a fixed monthly payment.

A credit card consolidation can be one of two things:

First – You take a credit card and “transfer” the balances of all your other credit cards onto it. Then you have only one single credit card bill.

Second – A debt consolidation loan where you get a loan through a bank to pay off credit card debt. Sometimes the bank will want you to cancel the cards too. Not always.

Question: Which is a better route? A “debt- consolidation loan” or a “personal” to pay off credit card bills?
How does either loan affect credit scores etc…?Which one tends to get the better interest rate? Any recommendations on what financial institution to go through? How much money do you need to make to take out approx. 10k? Any other info you can provide would help out a lot!

Answer: Your not solving your problem. Your just relocating it so it looks like it is in check.Just pay off your credit cards and then cut them in half and throw them away.Your still going to have an interest rate no matter how you do it.Your best bet is to try and make as big of a payment as your budget will allow each month. and pay them off and I strongly suggest getting rid of them afterwards. Oh yeah one more thing don’t use them while your paying them off cause you’ll just be adding insult to injury.

Question: Is it better to pay off your credit cards with a debt consolidation or just pay it off yourself?
especially if you don’t’ have the money to pay off the monthly balance? i have $8,000 worth of credit card debt and not sure if it was a good idea to get a debt consolidation loan to pay 3 of ‘em.

Answer: Debt consolidation affects your credit; you are marked as a “slow pay” and your credit rating goes down. If you can manage to pay them yourself, even if it takes a long time, that’s the better way to go about it.
If you don’t have the money for the minimum payment every month, then maybe debt consolidation will work out for you, because not making the payment will mess up your credit also. But cut up your credit cards and don’t get new ones, so you don’t go through this again in the future.

Question: College Student With Credit Card DEBT?
I am currently a junior in college and I desperately used credit cards to pay off college since financial aid didn’t cover it all so now I owe around 4,000 in debt. What is the best thing for me to do, since all of the accounts are closed, is there a college student credit card debt consolidation loan?

Answer: This happens all the time to college students, credit card companies prey on people just like yourself. I don’t recommend debt consolidation. It can back fire and make things worse for you.

Don’t ruin your credit score by ignoring the problem. Whatever you do don’t be late on any of your payments. Maybe you can pick up a part time job to pay it off.

Lately, it’s no surprise to see most young adults smothered in debt. What used to be one simple jewelry credit card to help establish credit has now piled up to be school loans, credit card bills, mortgages and auto loans. It seems as though the only way to help most young families in America is to seek debt relief consolidation options to escape a life filled with debts.

What’s to blame for so much debt in young adults? Well, most believe it’s the rising cost of living; the rising interest rates of school tuition and the ease of obtaining credit cards. But, only if they would analyze the consequences of building so much credit will do to them, maybe the outcome of living in debt wouldn’t be so fierce.

Did you know that almost no Americans have a savings account? Is the cause because we are getting so rich, there’s no need to save? Or, is it that as a community, we are getting so poor we have no money to save?

Well, statistics show, that we are, indeed getting richer, but our spending habits are getting much worse. Inevitably, were spending more and digging ourselves deeper and deeper in debt.

What are they buying? Young adults these days are living a carefree life. They are not budgeting. They are buying luxury this and luxury that; cars, wine, cloths, food, you name it.

That’s why the need for young adults to seek some sort of debt relief consolidation program early on is the best option for them. You see, with no knowledge about needs vs. wants, in about 10 years, they will feel the effects of their debt plus more. Later in life, they will most likely have a family to support and other important financial obligations.

But, in order for any solution to work to help young adults learn about their problematic and tricky spending habits, the nation must come together to put systems in place that help educate young adults about the future risks involved when they run into debt. And, yes, debt relief consolidation companies can be an intermediate in getting this message across to the young adults of the country.

CLICK HERE to see if you qualify to have your debt reduced instantly by 50-60%. Turn your monthly bills from $1000 to $500 or less.

Credit Card Debt Consolidation FAQ:

Question: Credit card debt consolidation companies, Anyone know of a good one?
I’ve become over whelmed with my credit card debt and I’m getting those phone calls because I’m missing payments and such.

Answer: Call your credit card companies and tell them that you are in danger of bankruptcy and you would like to work out an alternate payment plan. The regular customer service people usually can’t do this, ask for loss prevention. They will probably freeze your account so that you can’t use it anymore and then set up a payment plan. They want to avoid you being pushed into bankruptcy because then they lose their money.

Question: How good does my credit have to be to get credit card debt consolidation?
If I let my cards slip for a while I don’t know how much they’ve hurt my credit. I need credit card debt consolidation, will they accept me if my credit cards have been beating up my credit a little in the last month or 2?

Answer: The easiest way to really answer this question is to call around. Different Debt consolidation places have different rules and rarely is it based on credit score. The norm is based on the amount of debt and your ability to pay those creditors on time. I would not recommend skipping payments just to see a debt consolidator it will hurt you in the long run more then just having the break of contract with the collectors.

Some debt collectors are non profit which means there won’t be a fee to you if you don’t make enough money to pay there fee and your collectors at the same time. You also have to be careful as some debt consolidators will not post your first payment to your collectors and will keep it as fee causing you a non-payment on your statements for the first month.

Question: What is the min. amount credit card debt you must have to do debt consolidation and is this a good idea?
I wanted to do credit card debt consolidation but I am skeptical if this is a good idea with the economy. I am very far behind on my credit card bills and the only reason I can’t afford them now is because the min payment has gone through the roof. The all together debt that I have is less than 2,000.

Answer: I would caution you against any type of consolidation if you only owe a balance of $2,000.00. You could make payments of 112.00 monthly for 18 months and have your card paid off. I suggest you call your card company and offer a payment plan that you can make. Most will cooperate with you. I don’t understand how a $2,000.00 balance could “go through the roof”. Are you sure this is the problem ?

Question: What is the benefit of using debt consolidation for credit card debt?
I am trying to decide to either call the credit card companies myself and negotiate for a lower payoff/settlement amount, or to use a debt consolidation company? If I negotiate with the credit cards directly, will that be considered a charge off? I would want to settle myself if I can to avoid paying all the months of high interest. But if I use debt consolidation, then they will charge me a fee every month for so many years? What is their purpose? What would be the best route to go financially?

Answer: You have to make sure you have a reputable debt consolidation company. There are many out there that are not. I know that Consumer Credit Counseling is good because NCUA backs them and I have to work with them to coordinate classes for our members. The thing about debt consolidation companies is that sometimes they can get a better payment plan or rate because they have deal in place with the cc companies. Also, the credit card companies feel better because they know you are working with someone to actually pay down your debt.

You could also look into a consolidation loan through a credit union or bank. You have to look around and make sure you are getting a decent interest rate.

I think that you can get free consultations with the debt consolidation companies. This should tell you what the costs/fees would be. You can always try the calling the credit card companies first to work out a deal.

Question: Considering credit card debt consolidation, would this be a good choice; recommendations who I should use?
Is there way to consolidate my credit card bills and get a lower payment without affecting my credit?

Answer: Its best just to pay em off one at a time. Make min. payments on all but the smallest and pay off the smallest as fast as you can. Then move to the next smallest.
The reason for paying off the smallest amount first is the feeling of getting somewhere. don’t worry about the interest rate because that’s not the real problem.
I wouldn’t use one of these so called “debt consolidation” places either. The fees they charge are better off used to pay off your debt.

Question: Bank loan or debt consolidation program for credit card payoff?
Due to a family tragedy, my husband and I are currently in $26,000 of credit card debt. All of the payments are current and the cards are paid on time with the accounts still open (we are not still charging, though). We are looking to seriously pay this down before the interest eats us alive. My husband wants to take out a bank loan and pay the cards off that way, but I am wondering about the debt consolidation programs you hear about (I know some of those are scams and some are real). Any advice or experience?

Answer: A bank loan will require some form of collateral, like a house. If you can’t pay the loan, you lose the house. Debt consolidation will trash your credit score.

You are better off negotiating with each credit card. Mention to them that you may have to declare bankruptcy due to the high rate and could they lower the rate. In most cases, they would do that.

Question: Is it recommended to use debt consolidation for credit card debt?
I am approximately $25k in debt, should I use a debt consolidation agency?

Answer: Talk to a credit counselor first. Then see what the consolidation firms can do. Many times credit counseling firm has better rates or can get your debt combined for little or no fees.

Question: Any recommendation for a credit card debt consolidation firm?
A firm that you’ve been satisfied with and helped you to eliminate your debt with a competitive rate

Answer: I recommend Delray. They’re non-profit and don’t require additional loans or collateral. They negotiate with your creditors and consolidate your payments into one lower monthly bill.

When looking for debt elimination services, it’s best to search for settlement firms based on fees, terms and rates. Failing to go through this process, although timely, can eliminate potential problems in the future. So, when looking for a company to fit your financial needs, it’s best to focus on certain qualities to ensure a pleasant experience.

One thing you should be aware of when you are researching debt elimination services is to evaluate the representative you speak to on the phone. When talking to the company’s representative you want to make sure they are calm in nature and are willing to spend as much time you need to answer all your questions, efficiently. You also want to watch out for companies who make account representatives rush through your process; hence hurrying you off the phone. So, before getting off the phone, make sure they have explained every debt solution option available to help you get out of costly financial obligations effectively.

The right debt elimination services will also prove their cautiousness with keeping and organizing your records. So, if you ever have any questions regarding your bills, they are able to immediately pull up your records. Additionally, each preparer should be able to give you a complete itemized report of how long it will take to pay off your creditors, including any interest fees that might be owed.

Before starting your search to find the best settlement company, it’s best to write a list of all the qualities you are looking for in a company that will help you reduce your financial obligations. You may also want to do a little research on the type of companies you will call on, such as regular finance companies, non profit organizations or companies affiliated with government agencies. But, none the less, the best settlement firm you choose will be a long lasting partner in helping you better manage your finances.

CLICK HERE to see if you qualify to have your debt reduced instantly by 50-60%.

Debt Consolidation FAQ:

Question: Debt consolidation?
I have about 15k worth of debt and have tried applying to two companies for a debt consolidation loan and was denied both times. I thought about writing to the individual companies threating a voluntary bankruptcy order. I have about 10k in the bank, but I don’t want to borrow from that lender because I wouldn’t be able to use the money in my account. My credit is only good. What other options do I have?

Answer: Forget debt consolidation and any of quick fix they both will look as bad as bankruptcy on your record == take the 5k out of the bank and paid toward the debt and keep the other 5k back for rainy day fund == then downsize — computer internet service and the cell phone and its service and cable tv goes — then live this type of life till you credit score gos north and you have the 5k back in the bank!!! may seem like a jail sentence but until you get your debts paid off you have stolen the money from the people your owe money to!!!

Question: How Many Cards Can You Enter Into A Debt Consolidation Program?
Can you enter only 2 cards into a Debt Consolidation Program?? They are both high balances…one is $7500 & the other is $8500

Answer: Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

Question: My mother has a lot of credit card debt and asked me to research debt consolidation.?
She has over $25,000 of debt and has trouble making the minimum payments. We do not own a home and pay rent and auto loan monthly as well as the usual expenses. I looked at debt consolidation loans, and debt counseling sites and there is so much conflicting information. Anyone who has gone through the same or works in the field any advice?

Answer: We are in the same situation. Married and new kid with lots of bills from remodel, hospital, taxes etc. We are close to 30,000. I called all my credit card company and got the interest rate lowered or transferred to a fixed rate. I set up auto pay so don’t miss any payments and cut up those cards. I got 3 cards one fixed at 3.9, 4.9, and 6.9. We are paying as much as we can on the 6.9 and then 4.9. We have a set amount so we make min payments on the first two till we pay the others off. Set up a BUDGET and stick to it. If you call them ask about getting a fixed locked in low rate. If they don’t budge call again or ask for manager.

Tell them your in financial bind and they will work with you and set up a lower monthly payment. Also check the interest rates she has and what penalty she is paying. Few phone calls and you can lock in your rate. Then DON’T USE THOSE CARDS.

It is slow and painful but you will see the progress.

Question: Trying to get help with debt by a debt consolidation loan but I can’t get approved?
Trying to get help with debt by a debt consolidation loan but I can’t approved. I’m behind on payments so I just keep sliding deeper into debt with late fees and I’m trying to pay it but can’t get the help I need. help!

Answer: Home equity is a bad idea. If you put all that money on your house and something happens and you cant make the house payment then they will come and take your home.
There is no easy way out. A written budget would be the first thing you do. Cut back on the things you don’t need until you get the debt payed. take a second job for a while.
you could try daveramsey.com and listen to his radio show. he has lots of good advice on money and debt.
i wouldn’t go with any company to handle it. They don’t do anything that you cant do yourself. What they do is not pay your creditors for months and then try and settle for less. Something you can do yourself if that the route you need to go.
Just remember that if you go with some company to pay your debt and they dont pay then You, and you only are responsible for the debt. Your creditors will sue you and not the company you hire.

Question: Who do you recommend for a good debt consolidation service? Any personal experiences?
I have approximately $15K in various credit card and hospital bill debt. I am looking for a good company that does debt consolidations/loans.

There are lots and lots of companies available but I’ve heard there are both good and bad ones out there. Personal experiences are highly important so if you have any – please share them.
Also, is there any rating/review service or consumer guide that has written about this field? Web Links?

Answer: Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But beware — just because an organization says it is “nonprofit” doesn’t guarantee that its services are free or affordable, or that its services are legitimate. In fact, some credit counseling organizations charge high fees, some of which may be hidden, or urge consumers to make “voluntary” contributions that cause them to fall deeper into debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Question: Does it seem true that banks view debt consolidation as a bankruptcy?
Will you be able to get a loan after a debt consolidation? Does it depend on the amount of debt?

Answer: Debt consolidation is nothing more than getting one loan to pay off all previous loans and then paying off that loan. It doesn’t negatively affect your credit as bankruptcy would as bankruptcy is asking your creditors to forgive your debt after proving that it is impossible to pay them off.

Question: What is the best debt consolidation for people with bad credit?
I would just like to know of some good debt consolidation companies that people have used that are friendly to people with fair credit and that are simple to receive help from.

Answer: I used Balance Pro, www.balancepro.net. It is non-profit, therefore, free. It really helped me get my debt in order. If your credit is already ruined, you will probably not be approved for a consolidation loan. This company works with your creditors to lower your monthly bill, and combines all your current bills so that you only have to make one payment. Even if you choose not to go that route, they can give you excellent advice on what steps to take.

Question: I need help with debt, who will approve a Debt Consolidation Loan?
I’m am not very far in debt but need help getting back on my feet. Every time I apply for a Debt Consolidation Loan I am denied. Who would approve me?

Answer: I have been told that banks look at Debt Consolidation Loans as a bankruptcy. They feel that you can not handle your debt alone so you are a big risk. Pick one debt to concentrate on to pay it off. The two different methods are to either pick the highest interest debt or the lowest debt amount. Once you paid off that debt then concentrate on the next debt until it is paid off.