Is there ANY debt consolidation service that isn't a scam?

[VWolf]

Wife and I would like to consolidate some credit card debt to lower our monthly payments, but every service out there sounds like a scam. Can anyone help?

[NRaleighLiberal]

1. From what I've read, they are all scams. Best things to do:

If you have a home equity line of credit, they typically have lower interest rates and you can deduct it

Or, get a credit card with the lowest APR and move your other debts onto it.

No matter what you do, discipline is the most important thing - make a plan and stick to it, which means spending less.

My wife and I found a good financial planner a few years ago - the first thing she told us is to pay off the cards and, if not cut them up, put them away. Getting out of debt isn't easy, but like all things, anything that sounds too good to be true, is.

good luck....

[VWolf]

2. That's what I figured,

but I had to ask. Thanks!

[lastlib]

3. No. None of them really do anything for you that you can't do for yourself.

If you're paying too high of an interest rate, call them and ask them to lower it, and let them know that if they don't you'll transfer your balance to another card and close your account. If you're current on your payments, ie, not late w/in the past six months, odds are good they'll do it.

I hear most financial planners say to pay down the credit card with the highest interest rate. This is generally wrong--you should pay down the one that is costing you the most in finance charges. It may be a lower-rate card with a higher balance, or it could be the one that has the higher rate, but possibly a slightly lower balance than a lower-rate card. That finance charge (interest) is, as my grandfather once said, like buying a dead horse. You need to "dismount"--get it cut down to a point that it's not costing you so much.

[VWolf]

4. Haven't had a late payment in many years

Thanks for the advice. I really appreciate it.

[lastlib]

5. happy to help a fellow DUer!!

hope you are successful with your debt reduction! Just keep focused on how good it will feel not to be buying that dead horse every month!

[SheilaT]

6. I was under the impression that

the National Foundation for Credit Counselors http://www.nfcc.org/index.cfm is a good outfit. However, I have no personal experience with them, or with any other such organizations.

I am aware of a co-worker of mine who was able to get connected with some debt consolidation service several years ago when she was just completely overwhelmed with debt. They consolidated everything, she sent them money every month, they took care of the payments. It took her about three years, but everything was paid off.

I think it's the consolidation part that is so difficult to get done on your own, and that a legitimate service can do for you.

But do your research carefully, and if possible talk to those who have used the service.

But whether you get help with this, or do it on your own, the single most important thing is going to be to stop using your credit cards completely. It's hard, because we live in a culture that constantly tells us to buy, that we deserve whatever we want, and that it will all be okay. Because of that, I sincerely recommend you stop watching regular, commercial TV, because almost every ad you'll see is exhorting you to buy, buy, buy. I've been without TV for five years now -- I watch what I want on the internet -- and it's made my reduction in income a lot less noticeable to me because I'm no longer surrounded by those messages.