Has anyone used a debt consolidation company before? We've been having a difficult time keeping up with our bills since I lost my job last fall. I have still not been able to find another job and our financial situation just keeps getting worse. I don't even know if those companies work, but I'm willing to try anything to keep the credit card companies at bay for a bit longer until we get back on track. I'm not trying to avoid paying altogether, just need a little time or relief to get back on our feet.
From what I know I would not go through a debt consolidation company I really suggest getting the Total money makeover book from Dave Ramsey we have been on it for over a month and are doing great it's amazing how it really works once you put it into effect. Good Luck!!
Don't do it! Please! I have two magic words for you: Dave Ramsay.
Go to the library and get Financial Peace or Total Money Makeover YESTERDAY. It will make a HUGE difference in your life. I promise.
Tara,
Go to my site http://www.marriagemoneymatters.com - there is a lot of information and resources on it at the Basic member lvl which costs $0. If you become a member at Intermediate level still very affordable and I can work with you on different things. You have 24/7 access in the comfort of your home.
All I know is we were advised NOT to use any of those companies. We went through the Dave Ramsey seminar and learned how to live debt FREE! We have one credit card and two cars that are paid off. No new furniture...no fancy schmancy new anything right now, but we have paid off all our cc and student loans AND we had a preemie baby in 08 and I had surgery and those are paid too!
All the debt consolidation companies do is contact your debt and make arrangements to put everything off. You can do that all by yourself and not have to pay anyone anything. It's not that hard. Dave is a good guy. He's been through bankruptsy and all kinds of financial desasters...he's your m an!
Tara,
I am not sure those are the best way to go. Have you ever listened to Dave Ramsey? He does Financial Peace seminars and has a show on Fox News Channel.
One thing he recommends is to find the credit care or bill that you owe the least on and pay as much as you can on that one while making minimum payments on the other. When that one is paid off, do the same for the next one and so on.
Make sure you contact your creditors and see how willing they are to work with you.
Good luck and God bless.
Victoria
I know someone who is using one, basically hers works by making one large payment to the debt company instead of several to different companies. It's working for her, but I wouldn't recommend it because your paying the company a fee that would be better spent by paying the credit card companies.
You don't need a debt consolidation company, you can do it yourself. Call your creditors and explain your situation. If you can't make the payment try to make arrangements for something you can afford (won't work for credit card companies, but may work for the mortgage, car payments, utility bills).
Do you pay your bills on line using your bank or a bill pay service? I use my bank and there's no fees. If you or hubby get paid weekly, you may find it easier to send the credit card company 4 $10 payments (one each week), rather than 1 $40 payment and it'll save you some interest.
I second the Dave Ramsey recommendation! You can check his book(s) out of your local library. He is amazing!
- Best wishes to you
My husband and I just completed the Dave Ramsey "Financial peace University" course. DON"T DO THE DEBT COMPANY!!! Honestly, I would encourage you to sit down with your husband and look at your finances. Honestly, credit card companies are low on your todem pole.
1. Shelter, Food, gas in your car, and utilities are MANDATORY! Those needs need to be met first before you even think about paying down on your credit cards.
2. Credit cards companies are going to try to get you to pay them first, threatening you, don't let them intimidate you. I would love to give you the budgeting form my husband and I use every month. It really helps stretch our dollars.
3. There is a website, which is highly recommended to help you save on food every month by providing meal plans for families. My hubby and I SWEAR by it. www.e-mealz.com
4. Listen to Dave Ramsey on 103.5 weeknights from 7-9p if you want. He offers callers some awesome advice. he has a number you can call and ask questions if you need to.
There are alot of helpful things, trust me, this course helped my husband and I get outta debt really fast. We are not debt free or anything but working on it.
Please email me if you have any other questions: ____@____.com
B.
I can't find it but the Chicago Tribune recently did an article on debt consolidation companies and many were in trouble with the law for misrepresenting themselves. I would be very wary. Maybe you could talk to a financial planner who could help you do things on your own to more quickly reduce your debt.
