Is debt consolidation through a non profit company a good idea? has anyone done it before? recommend it?

We did this a few years back. Basically, what usually happens is that the company will negotiate with your credit card companies for lower rates. They then have you send them roughly what you would have been spending each month anyway or your minimum payments, maybe a little more, and they take that money and start aggressively paying off those account for you. You won't really suffer bad credit because of this - in fact, you'll pay off the debt faster and have lower rates, so it will help you in the long run. But you have to make sure you're in a position where you'll -actively make all those regular payments until the accounts are paid off -not use those credit cards again! You're basically freezing those accounts, to be closed whe you're done. -Not take new debt to take the place of your old card accounts Now, technically, you can do all of this yourself, and probably even save a little money in doing so. But some find that it's easier to have someone else coordinate everything, and just send in a single payment each month (they may even request or require and automatic transfer of funds from your bank account eachmonth). For the record, we did this a few years ago, and it worked really well. We had to change some of our spending habits (no more buying on credit, just used the American Express chage card because you pay the whole balance off each month). But it was worth it to get out from under all that debt. Good luck!

It shows on your report.....worse if you don't "complete" the program.....that should be your last last option.... You should get all your bills together.....call each one and politely ask for a rate reduction....even a temporary one.....then list them smallest balance to largest......focus on paying down that first one w/ every spare cent you find....try to make minimums on all others....once you have that first victory under your belt...you might stay motivated to tackle the next smallest balance.... At the same time.....you gotta take your medicine....lose the internet/cancel the cable/lower your cell/lose your landline....sell your wii on ebay..... get a weekend morning shift at McDonalds...deliver pizzas....sell the baby clothes at a consignment store.....clean your neighbors' garages for $50 a pop.... It is NOT forever.....just bear down and stick to it...