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 Posted: Sun May 08, 2005 8:07 pm Subject: Is Debt Consolidation really good ? |
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debt consolidation sounds like many things that are bad....it sounds great....
The problem is that having these companys on your credit report is almost as bad as a bankruptcy except if you actually filed bankruptcy creditors would know you wouldnt be able to file again for a really long time...plus now you have the new laws which go into effect shortly....but even after a bankruptcy creditors will give you credit but not with consolidation companies....plus what the company does for you you can actually do yourself.....they just make small payments to all your bills per month while lining thier pockets as well....why would you want to spend even more money on your debts. These ppl are getting rich by not avoiding collection agencys where most ppl hate them. Can say from experience 90% of agencies will work with you as long as you are making consistant payments of some sort on a regular basis. NO ONE CAN REJECT ANY PAYMENT NO MATTER HOW SMALL.
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john_johnson702
Joined: 08 May 2005
Posts: 4
Debtcc Points: 337
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| Posted: Sun May 08, 2005 8:23 pm Subject: |
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I see it's your second post..So Welcome to the debt consolidation Care forums  .
To some the relief of paying their debts and not being chased by the CA hounds is a good feeling.
Some who have used disreputable Credit repair Agencies...they may have horror stories.
Same with some Ca's, they buy Debt for pennies on the dollar in order to make a profit. do they care who owes it or if the account is in error......Not in most cases...it is just so much $$$ Profit for them.
The secret is to make sure before completing and agreement that you have it all in writing, have time to review it, etc.
DCC to the best of my knowledge strives to work with the most reprepartable organizations, and their are good people here to answer your questions to the "BEST OF THIER" knowledge.
Jerry
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NOTE: Not all will agree with me, nor am I a Lawyer offering adivce, just offering my Opinion.
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jtucker
Moderator
Joined: 01 Mar 2005
Posts: 121
Debtcc Points: 7276
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| Posted: Mon May 09, 2005 11:29 am Subject: I will defer |
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Hi John_Johnson702,
Welcome to the forums, we welcome all views about debt consolidation and related topics. We love to discuss the issues and we repeatedly tell the people that there are many solutions possible for the debt but choosing the most suited is the bigger task. Let me try to put my views on your post.
| Quote: | | The problem is that having these companies on your credit report is almost as bad as a bankruptcy except if you actually filed bankruptcy creditors would know you wouldn't be able to file again for a really long time |
This happens with the company which doesn't know how to deal with the case. Good Companies surely take care of these issues to provide a cleaner report like,
- Good Companies ask their clients to close all the accounts properly before the program starts and they keep only the once that will offer a better interest rate and that the client wants included.
- Proper follow up, properly changing due dates and they make sure that all proposals are sent.
- Proper fixing of payment dates before the client gets started.
- Once payment is done, the account should reflect "paid in full" or "paid" or "paid as agreed". Some companies' doesn't follow up on this issue which debt consolidation care feel is very important.
- Good Companies calculates the interest on each account before including few under the program. Bad ones just include few in random that would result in a higher interest rate through the program.
- The assigned counselor of a good company should be able to tell you the exact payoff time on each and every account individually. There are two exceptions which are namely MBNA and Discover accounts. These are the only 2 creditors that don't offer any set interest rate that they offer for credit counseling until after the proposal is sent and accepted.
Points are many but we stress on high quality, transparency and honest advice. We know that debt consolidation is not always the best solution; our partners try to offer the best suitable debt solution.
I hope this will help you see the better side of debt consolidation and debt settlement.
Thanks
Denny
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DebtConsolidationCare - Largest Community of people in debt.
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Denny
Site Admin
Joined: 19 Oct 2004
Posts: 1745
Debtcc Points: 76104
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| Posted: Mon May 09, 2005 12:25 pm Subject: |
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Hi john_johnson702
As a matter of discussion, I feel that there is nothing in this planet which does not have advantages and disadvantages. If debt consolidation stands in comparison, then naturally there should be some positive and negative sides of it. Debt consolidation stands unique because the response of it by the people has been great and it acts as a solution to so many problems.
It was a general discussion and I have just posted my views.
Thanks with regards
Roxette
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roxette
Moderator
Joined: 18 Mar 2005
Posts: 4140
Debtcc Points: 50413
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| Posted: Tue May 10, 2005 10:50 am Subject: I agree with Jerry and Denny |
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I agree with Jerry and Denny,
Let's take two case:
Person A : He has a charged off account and applied for mortgage.
Person B : She also has a charged off account but she goes through debt consolidation and then applies for mortgage.
The Result: Since the account is charged off it will remain their as R-9 in the credit report but since Person B was able to settle it with a little extra effort (with just 30% to 50% amount) She will get the mortgage while Person A will be refused.
Settlement and Consolidation has many advantages but nothing is as better as complete normal and timely paid off account.
Mr. Johnson there are many who were helped with debt consolidation and settlement, all you need is a good customer caring company. A BBB certified company with good history can be really helpful.
Tintin
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BlogTintin
Debt Samaritan
Joined: 16 Mar 2005
Posts: 183
Debtcc Points: 12
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| Posted: Wed May 11, 2005 10:45 am Subject: Well Said |
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Well Said Tintin, this is special place where settlement is helpful even if it is charged off account.
Once an account is charged off it becomes R-9 in your credit report and it will remain for next 7 years no matter what you do. This is one case where settlement has made mortgage possible.
If the consumer is not aware then they can be tricked by few cheap companies. We are working hard with the community to educate the masses. We have plans to conduct classes for elderly citizens and youths in the coming months.
Denny
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DebtConsolidationCare - Largest Community of people in debt.
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Denny
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Posts: 1745
Debtcc Points: 76104
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