What a good credit card consulation company that reduces your debt?
I’ve heard of some companies out there but which ones can you trust that are not scam. I heard that they negotiate with credit cards to reduce the total debt and pay them from an Escrow account that you pay money to. Is this true? How long does it take to bring back your credit rating after this?
one company I was talking to was http://www.greenfinancialservice.com
Can anyone tell me if they are legit.
The truth is that any involving any company in sorting your debts is going to cost you a lot of money and increase your debt. None of these companies work for free, and the payments they arrange will always include generous fees for their services.
If at all possible you should try to tackle your debt yourself. There is help available online, as long as you can avoid the companies that are just trying to sell you something.
There are lots of things you can do yourself, from looking at transfering your credit card balances, to controling your expenditure, working out a Financial Statement and approaching your creditors yourself. With a bit of help you should be able to make progress yourself without paying someone else and making your situation even worse.
Yourself
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Last week on Suze Ormond I heard this:
These companies tell you not to pay any more debts and ignore your bills. For this they charge you a fee.
The thinking is that credit card companies will get scared when no payments are received for a few months and settle. In the meantime you are racking up late fees and interest.
Some companies might settle, but others may just send it to collections. Collections can double or sometimes triple the actual amount because of all the fees involved.
YOU CAN DO THIS YOURSELF. Call all your creditors. Threaten to close the account unless they lower your interest rate. See if you can get a card that offers 0% interest on balance transfers.
bankrate.com has as list of all major credit cards
just click on credit cards and search for the options you want.
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The truth is that any involving any company in sorting your debts is going to cost you a lot of money and increase your debt. None of these companies work for free, and the payments they arrange will always include generous fees for their services.
If at all possible you should try to tackle your debt yourself. There is help available online, as long as you can avoid the companies that are just trying to sell you something.
There are lots of things you can do yourself, from looking at transfering your credit card balances, to controling your expenditure, working out a Financial Statement and approaching your creditors yourself. With a bit of help you should be able to make progress yourself without paying someone else and making your situation even worse.
References :
Unbiased advice on getting out of debt at http://www.debtassistancesite.com – includes info on improving your credit rating, creating a Financial Statement, and dealing with creditors yourself.
Forget the debt reduction companies. They take money from you and let all your accounts go 90 days past due. Then they offer lowball settlements under threat that you will file bankruptcy. Not only does this trash your credit, but most credit card companies refuse to play. They will immediately sue you. The debt settlement company won’t be helping you with the lawsuit either.
If you are current on your credit cards, it is very unlikely that the credit card company will settle for less than the full balance. They have absolutely no incentive to do so. You might be able to negotiate a lump sum settlement IF you have some permanent financial change, like medical disability. But the account would show on your credit report as charge off/settled — a negative. And you would probably receive a 1099 for the forgiven portion which you would have to include on your income tax return.
If you are having trouble keeping up with your bills, consider credit counseling. Check here for a NFCC member in your area: http://www.nfcc.org/. These are legit, non-profit companies that offer debt management programs for a nominal fee. The don’t settle your debts. They negotiate lower interest and payments so you can pay off your debt.
While in a debt management program, it will be noted on your credit file. However, upon completion, the notation will be removed and you will have decent credit.
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