Free Credit Card Debt Consolidation

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Am 32 yrs. old with no house or family as of yet but loads of credit card debt. I joined a debt consolidation program in May (only after joining a different one prior that ended up being a fraud and my credit score dropped 300 points), I am having $600 deducted on the 30th of every month and will be debt free in 3 years. However, is this going to destroy my overall credit? Nothing went to collections, I was in good standing before joining the program and the reason I joined was because I was paying the same amt. on the program as off, I just saw a light at the end of the tunnel with the interest rates being lowered through the program. Anyone in the same situation? Thanks.

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When I was 32 (in 2003) my wife and I went to Consumer Credit Counseling Services because we couldn't cover our monthly bills. We had a high debt to income ratio and I was laid off for three months and we couldn't recover. Like you, we went to CCCS before our debt went into collection. We had a few that were late but we never let the mortgage or car payments fall behind. Luckily, we were able to pay of our program in less than a year and a half. When we worked through CCCS our yearly credit bureau reports included notes like' working in a debt management program" Now that a year has passed they say things like "account paid". The cards we enrolled in the program had notes on the reports like "card cancelled by issuer". Will it hurt your credit? In the short run Id have to say it does but only slightly. in the long run it was good for us and we don't regret it a bit. Since then I would say we've gotten offers from the same companies that cancelled us before. Since then we were also able to finance and build our dream house and we both have credit scores close to 700.

My mother is over $20,000 in debt due to impulse buys and necessary home repairs. She has 3 credit cards and had things paid off or nearly so until the repairs came up. She owns her own home but may lose it due to the debt. What are the pros and cons of debt consolidation? Which places are legitimate if we decide to go that route? (I'm helping her look into various avenues.) Do they charge for their sevices or are they free? How do they work? Any tips on preventing this kind of thing from happening in the future? She does cancel cards as she gets them paid off since she doesn't want to be more in debt. The mortgage on the house was paid off last year. It is the home repairs made since then and a buyout of one of the credit card companies by another bank that has her in financial straits. She has been paying above the minimum amount owed on all 3 cards for some time trying to get them paid down.

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I know someone in similar circumstances. What she did was to call up the banks and arrange a meeting with all the different banks' representatives. During the meeting, present your side of story (it helps if there is someone alongside your mum during the meeting), show them your income documents and explain why you cannot pay them what they require from you - because a person still need to pay for groceries afterall. There are 3 things that can be negotiated to your favor. 1) The past interest charged to you. This can be discounted depending on the bank's policies. 2) The future interest charged to you. Most banks can give you a lower interest or even 0% for a limited period of the next 6 months or 1 year. 3) The monthly repayment amount. Explain what is a comfortable amount you can offer to pay them per month and always highlight that you are servicing the payments to various banks all at the same time. Ask them to re-work on your monthly installment amount based on what you offer. Most times, they can fix it at say for example $100 for the next 12 months with the option of a gradual increment to $150 afterwards. Most importantly, display your sincerity of your willingness to pay. Explain that you do not want to default totally thats why you are hoping that they can help you with your financial situation. Always negotiate. Good luck.

I have a total of eight credit card accounts. The first one that was opened was in March of 2006 and the most recent ones were opened last year (one in November, one in October). I am trying to pay off my credit card debt which in total amounts to about $5000.00. I have paid off three of my accounts (one with credit limit of $300, two with credit limits of $500 each) and the third account is a Macy's charge account that I do not use and gave in to the sales pressure to save that extra 10% and later returned the merchandise because it was overpriced. Which accounts should I close? The majority of my accounts are maxed right now but am working to pay them all off and become debt free. I know I am not supposed to close my oldest card. But which accounts are acceptable to close? Furthermore, what is the best way to pay off the remainder of my debt efficiently? I got into credit card debt while in college and my credit history is rather short so getting a consolidation loan is out

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My husband and I are WAY in debt and I have been trying to talk him into doing debt consolidation cause at the rate we are going, we won't be able to buy a house until our kids are all out of the house!! The thing is, he doesn't believe they actually help all that much and that we would be better off paying it off ourselves. Is it true that they can work with credit card companies to reduce or even remove APR from the debt amount and can give you an estimate of when you can be debt free? We have four credit cards that equal about $25,000 and we've got to the point where we are making payments just so we can get food and gas. Any debt consolidation advice is greatly appreciated!

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I highly recommend debt consolidation, but only through a bank. If you continue to keep paying the minimums on the cards, you will never be debt free. I went to my bank, explained my situation honestly and asked for help. They paid off all of my credit cards and bills and put it all into one payment. It freed up a great deal of money each month, as I only had one payment. Then they gave me a visa with a lower limit that I agreed to pay off each month. It's the smartest move I ever made, believe me, you will never get out of debt the way you are going....you need your bank's help, and if they won't do it, find someone who will. You will have the money to purchase a home much quicker than you think if you ask them to help you come up with a savings plan....also if the bank knows you will get your mortgage through them, they will be more willing to help you.

I have about five to six unsecured debts [no credit cards] that i need to consolidate and make one payment or like. Bankruptcy is not an option for me. The total is around $10K. I am not interested in debt consolidation agencies, so far the ones i have talked to, i know more what to do than them...I can make monthly payments toward the debt and also pay reasonable fees and/or % of satisfactory arrangements. Anyone knows a serious, good attorney in the areas that i can contact for a free consultation. Thank you Mr Gerald, with replies like yours no wonder you have so many answers....I am retired, disabled, soc sec, and yes i still work, as allowed...so your easy out is poor at best....thanks

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Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were. Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option. Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it. In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it. If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there: http://axalda.info/debt-consolidation.html