Combining Debt - Financial Debt Consolidation Scams
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Pay Off Debt Dues Faster. Low Interest Rates - that is the publicity. The fact is that only the debt consolidation company benefits from this one. They buy - yes buy - a lower rate of interest from the company you owe money to by negotiating payment of thousands of dollars of debt. You are charged an amount for this facility and a monthly fee thereafter. The debt consolidation company pays off your loan fast, you don't. You keep paying them in its place. If you thought making regular payments by your due date was expensive, try making ONE LOW Payment monthly. These companies only buy bad debt to minimize the interest. They will buy groups of debt - thousands of dollars of debt from a firm to get the lower interest rate - and in addition they get a percentage kickback from your credit company to reward themselves for payment of that debt. Debt consolidation scam fees are included in your monthly payment - So literally you pay as much as you would have if you had sent that extra payment to your credit company and paid off your higher interest rate credit card sooner by adding that extra fee to your payment every month. Actually, you pay a bit more. They don't re-negotiate your payment date. That means that they pay everyone's payment at the same time, once a month. If they repay on the 15th of the month and your payment was payable on the first, then your credit will take a 30-day late payment once a month - every month-on all three of your credit records. Late payments stay on your credit history for 7 years (or more). Feeling good now, I'll bet! That's not over. You could also be one of those people whose payments get missed once in a while - Yes it takes place all the time with Debt Consolidation procedures. Negotiation is something you can do on your own. If you just hate talking to these people you can even empower someone you know and trust to negotiate a lower interest rate for you on your advantage. If you can't get anywhere negotiating with the initial person you talk to, ask to talk to a supervisor. If you can't get anywhere by the third supervisor, you're stuck. - Negotiate your own reduced Interest rate - Stretch your repayment schedule - Pay off the highest interest debts First and add extra money - Write 2 checks: One for the lowest payment and One for any additional money with a note in the memo that states: "Principal Only Payment." This one simple measure can save you tons of money. If you don't do this, your money is automatically applied to the interest and you'll pay more interest for an extended period. Yeah, that really sucks, certainly not for them. For you. - Figure out - there are free debt calculators all over the internet - what it would take to repay your highest interest cards first. I plugged in my own and got up to the fact that if I add $60 a month to my minimum credit card repayment, I can have a $1300 debt paid off in 12 months with $66 interest. - If I continue with the minimum payment, It can take more than 6 years and cost me over $2500. Actually that one action on my part put over $1134 back in my pocket - in one year. And I did it on my own. Without debt consolidation fees! I don't recommend any debt consolidation firm. They prey on your despair and the doom and gloom of the length of repaying your credit cards at minimum payments. What You Need To Know About The Debt Elimination Programs And How They Can Help You Should You Be Submerged In Personal Debt If you do not know how to control your spending, you will soon find yourself buried in debts that are hard to shake off. Ways To Help Cope With Your Enormous Credit Card Debt And Never Worry About It Again You've run your credit card debt up so high you don't see any way to pay this debt off. 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