Combining Debt - Debt Consolidation Ripoffs


Pay Off Debt Faster. Low Interest Rates - that is the buzz.

The fact is that actually the debt consolidation company profits from this one. They buy - yes buy - a lower interest rate from the company you owe money to by negotiating pay back of thousands of dollars of debt. You are charged a fee for this service and a monthly fee then.

The debt consolidation company pays off your loan faster, you don't. You keep paying them rather.

If you thought making regular repayments by your due date was expensive, try making ONE LOW Payment every month.

These companies only buy bad debt to lower the interest. They will buy collections of debt - thousands of dollars of debt from a company to get the lower interest rate - as well as they get a percentage kickback from your financing company to reward themselves for payment of that debt.

Debt consolidation scam fees are built into your monthly payment - So practically you pay as much as you might have if you had sent that extra payment to your loan company and paid off your higher interest rate credit card faster by adding that increased fee to your payment monthly. Actually, you pay extra.

They don't re-negotiate your due date. That means that they pay everyone's payment at the same time, once a month.

If they pay on the 15th of the month and your payment was payable on the first, then your credit will get a 30-day late payment monthly - every month-on all three of your credit reports. Late payments stick on your credit history for 7 years (or longer). Feeling good now, I'll bet!

That's only a few. You could also be one of those persons whose payments get missed once in a while - Yes it happens all the time with Debt Consolidation techniques.

Negotiation is something you can do by yourself. If you just hate discussing to these people you can even authorize someone you know and trust to make a deal for a lower interest rate for you on your behalf. If you can't get anywhere negotiating with the very first person you talk to, ask to talk to a higher authority. If you can't get anywhere by the third supervisor, you're stuck.

- Negotiate your own lower Interest rate

- Extend your repayment schedule

- Pay off the maximum interest debts First and add more money

- Write 2 checks: One for the minimum payment and One for any additional money with a word in the memo that says: "Principal Only Payment." This one simple action can save you tons of money. If you don't mention this, your money is automatically applied to the interest and you'll pay more interest for a longer period. Yeah, that really sucks, definitely not for them. For you.

- Figure out - there are cost-free debt calculators all over the web - what it would take to pay off your highest interest cards first. I connected my own and came up with the fact that if I add $60 a month to my minimum credit card bill, I can have a $1300 debt paid in 12 months with $66 interest.

- If I continue with the minimum payment, It can take longer than 6 years and cost me over $2500. Simply that one action on my part put over $1134 back in my purse - in one year. And I did it myself. Without debt consolidation costs!

I don't recommend any debt consolidation company. They prey on your desperation and the doom and gloom of the length of paying back your credit cards at minimum payments.

Debt Elimination Programs Can Save You If You Are Having Difficulty Paying Your Bills
If you do not know how to control your spending, you will soon find yourself buried in debts that are hard to shake off.

Know How Helpful Credit Counseling Non Profit Services Is
Many people happen to get into debt and require credit counseling non profit services. While there are many different types of organizations and companies which offer credit counseling, however the credit counseling non profit services are considered to be the most beneficial for the debtors.

How To Be Able To Get Out Of Credit Card Debt Situation And Thus Continue To Be Credit Card Debt Free
Its not hard to become credit card debt free but it requires you to learn to say no to those purchases.

Credit Card Money Information An Individual Ought To Know To Help Your Financial Situation
Being in credit card debt is a growing problem. Most of the time it starts out slow and before you know it you are deeply in debt. Learn some things to help you eliminate this growing problem.

Measures To Help You Manage Your Credit Card Debt
Managing credit card debt should be on the top of your to do list if you are struggling with keeping debt under control. Credit card debt can often times be very difficult to eliminate. Below are some tips to help better manage your debt.

Information About Government Debt Consolidation Loans That You Ought To Take Into Account Prior To Signing A Contract
There seems to be a great deal of talk about government bailouts these days. Each time you hear the latest financial news it seems that some company or group of companies are asking the government for help to get them out of a financial mess.

Methods To Cope With Your Enormous Credit Card Debt And Finally Eliminate It
You've run your credit card debt up so high you don't see any way to pay this debt off. And, you won't pay it off if you keep living like you have been.

Tips On Getting Rid Of Your Debt While Preserving Your Credit Score
Falling into debt has many consequences. One of the major consequences is the damage to your credit score. Learning how to manage your debt can help minimize the damage done to your credit score.