debt consolidation

Hi fly, welcome to the forums. I can only offer you my experience in hopes you can take something out of it.
I had 10 thousand cc debt racked up and like you i didn't have the income to pay any bills let alone eat and have enough for rent etc. I was a graduate student at the time...so I had to call all my cc companies and arrange a payment plan with them. If I remember most if not all worked with me. Then...despite these plans, I had to go into consolidation as i had NO money coming in for months...long story i can tell you another time as to why i had no money.
So... I went the consolidation route and it was great. I called a company (who is now money management international) was assigned a counselor, told him my financial situation, adn we created a plan that would allow me to combine most of my credit debt into one monthly payment that was distributed to my creditors that agreed to the terms of my plan.
Advice: first contact your creditors and let them know what's going on and document the date, time, and the person you talk to as you will surely need this later! Sometimes you'll have to call a couple of times because their databases don't get things right. that way I had the information to tell their cust. rep that i did in fact call and have the info to back that up.
Secondly, should you choose to consolidate, check into the company's reputation with the better business bureau. say you find a company that seems to be a good fit for you, also check them out on this site as there is a search bar for you to use. a great feature of this site. but perhaps the best feature, outside of many knowledgable forum members, is the FREE CONSULTATION that all members are entitled too. Call their toll free number and a debt professional will contact you to give you free advice. what you do from there is your decision. I think that you have many options at your disposal, it's just a matter of you figuring out what is the best for you and your financial situation. I wish you the best of luck, hope this helps!!

All great advice Debt!

You could try to talk to your creditors...the worse they could say is "No". Some of the creditors might have a hardship plan that they could enter you into to help with the payments until you are able to resume normal payments. Some might lower the interest rate for you. Depends on who the creditor is & who you talk to in the company.

I had to go the consolidation route-my creditors still wanted too much money from me when they tried lower payments. So the consolidation company got my payments way down & combined them. I couldn't get the interest rates down that low-like they did.

The consolidation company asked me to fill out a form showing ALL my expenses. Some creditors require this before they even THINK about joining the consolidation plan. Some of them are looking to see how much you make vs how much you owe TO EVERYONE vs how much they are being offered. Some just want to see you are in debt. It varies, so if you do the consolidation route, be sure to ask your counselor.

My experience getting in to the debt consolidation plan has been good so far. I tried dealing with the creditors on my own but they wouldn't help. Once I was in a consolidation plan my one creditor became extremely helpful & told me they were accepting the proposal for consolidation. The other gave me a hard time, kept harrassing me but once I made a payment they were fine as well.

JUST CHECK TO SEE HOW THEY ARE RANKED WITH THE BBB!! Also, apply for a free consultation or call a counselor here!

Hi flyman

It is indeed very important to do proper homework before signing up with any debt consolidation firm. Debt consolidation is a very popular debt reduction option and many debt crunched people consider it to be a way out to lead a debt free life. Hence the poularity of debt consolidation companies is growing at an amazing pace...everyday a new debt consolidation firm crops up. But not all of them have good intentions. So, prior to signing up with any consolidation firm check what kind of certifications they have. Also check whther they are a BBB member or not....its always advisable to check how many clients were satisfied with the services of the firm. Next thing to check is the fess the firm is demanding. These are some of the factors you should look into prior to signing up with a consolidation firm.

Hope it was helpful
Keep us posted n take care
Nelly