Comments on: Is debt consolidation like filing bankruptcy? Does it ruin your credit?

By: julesoriginals

julesoriginals — Mon, 30 Nov 2009 10:17:06 +0000

It isn’t like bankruptcy. It still goes on your credit report for 7 years. Based on how they revised the bankruptcy laws, I think it’s better.

I’d talk with your bank to recommend a consolidator.

Good luck!

By: heybulldog

heybulldog — Sun, 29 Nov 2009 16:03:16 +0000

Depends on what you mean by “debt consolidation”.
If you are looking for one big loan from a bank to roll all or your debt into. It will not be like filing bankruptcy. It just means that you took out another loan.

If you are talking about using some company to consolidate and take care of paying your debt. Then Yes it will. What these rip off companies do is not pay your creditors for months and then try and settle for less. No special skills. They just don’t pay.

If that is the route that you must take. You can do it yourself and save the fees they charge.

Also, Your creditors do not have to deal with these people because it is your debt. If they don’t pay your creditors. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hired.

By: Zach

Zach — Sat, 28 Nov 2009 13:29:00 +0000

If you’re referring to consumer credit counseling, a lot of banks/lenders look at them similar to a bankruptcy. It doesn’t necessarily affect your credit score, but just the sheer fact that you were in one of those programs indicates that you have problems managing your credit. When you join up, they propose a payment plan with the creditor, upon acceptance they report that the account is managed by a credit counseling company to the credit bureau and companies do look at that.

I wouldn’t look at a company that charged you more than a small ($50 tops) setup fee and a reasonable monthly fee ($30 or so). You’ll want to look for a company that can get you a breakdown on what they expect to get you on your rates and could come up with an estimated savings.

Do not use Debt Free Arizona (or anything run under Help Ministries, LLC). I just googled and it looks like Ameridebt is done for you, they were crooks as well.

By: sarnick97

sarnick97 — Wed, 25 Nov 2009 07:57:16 +0000

nope, it doesnt…. all they do is pay off your bills for you and you pay them back with a little extra interest of coarse….
you should check out citi financial

By: Mrs.J.

Mrs.J. — Tue, 24 Nov 2009 12:53:47 +0000

no it isn’t.

no it doesn’t.

don’t do one over the phone. find a reputable place in town. check with the BBB before signing up.