I have a couple of high balance credit cards that i just cant seem to make much progress on, and i feel its definately holding me back a bit. Does anyone out there know much or have any advice about debt consolidation, along with recommendations on who to speak with? I have heard from a couple people that some consolidation companies are a rip-off, but i dont know how true this is.
Thanks Guys

The consolidation companies are generally a rip off. You should devise a plan of action. You need to start with the lowest balance and pay extra each month on that one and just the minimums on the others. Once you have the smallest one paid off add that amount you've been paying to the next smallest amount and so on. Eventually you will have them all paid off.

I believe "don't quote me on this", but if you go thruogh debt consolidation, it shows up on your credit report. Bad.

They are NOT all rip offs but most do cost you some how.

Not sure if this helps or not, but my grandparents were recently in a similar situation. They went to the bank and took out a loan for the amount they owed all the various credit card companies and paid them all off with the loan, so now they have one monthly payment on their loan instead of several monthly payments to several creditors.

Our bank is small and really personal though, so they were able to get a good deal on everything, not sure what sort of luck you would have going a similar route.

whatever you do, you should try and pay as much as you can afford each month on the credit cards. If you pay just the minimum you'll end up paying up to 6x the original cost of what you bought by paying back the interest. The quicker you pay it off, the less you'll be paying the credit card company in interest. (similarly, I'm going to save around $3,000 from my 14k car loan because I'm paying it off in 2 years, instead of 5!)

You can make an appt to talk with a free counselor at yuor nearest Consumer Credit Couselling service. Sometimes they can be a big help and they are FREE.

toastedoats, my advice would be to make an appointment with the financial institution you're presently dealing with since you're probably most comfortable with.
Take all the necessary paperwork re you’re debt and whatever collateral you may have to secure against what they may offer you, be it a loan, line of credit etc. Depending on how much collateral you have, you may have to do a song and dance, in other words sell yourself to whomever you're dealing with.

Be organized, confident don't miss a payment. If your institution rejects your application then you'll have to take the next step.


Good luck!

I would advise to get something (LOC, Loan, mortage refinance) that has a lower interest rate, pay off the cards, and cut up most of them. You will have to change your lifestyle, eat out less, go to less movies, buy less video games, etc.

I've been brought up not to buy anything you can't truely afford. Always save up more then you want to spend, so you're not draining your bank account, etc. That'* why i'm still driving the first car i've owned, and only put a tank or two of gas on the credit card a month (Best way to build credit is to pay a bill ).

But recovering from debt is only the first part. It'* almost more important to learn how to keep out of debt trouble after the fact.

I couldn't have said it better myself, Jason.

It'* a proven fact that those who use a debt consolidation service end up running up even more debt after the consolidation. Paying off debt should not be your only objective. With it MUST come a lifestyle change and commitment to remain debt free.

Check out Dave Ramsey at http://www.daveramsey.com/. His thought process is very logical and proven to help people. It takes discipline and perseverance.