What would be a credit consolidation company to use?

Credit Card Debt Consolidation?

• Did anyone use credit card debt consolidation and did it actually HELP them? I hear it may be worse to get it. I want to find a company that will help without me having to pay MORE or end up going to court.

• Answer:

  These programs involve deliberately ceasing payments to all your creditors to force your accounts into default to attempt settlements for less. 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. 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. A better option may be to enter a debt management plan through a non profit credit counseling firm like CCCS. They can negotiate reduced payments and interest but NOT settlements. Use this site for a referral: http://www.nfcc.org