Help me with a loan

who are you with, so we can alert other members of a bad consolidation company??

Benofied, are you with a consolidation or a settlement company? Please do let everyone know who you are with and what exactly happened.

Another loan to get rid of your current debts is not a good idea. Consolidation loans are long term loans, so you end up paying more and more as interest. Moreover, it might ask you put your home as collateral. So there is the risk of losing your home if you default in future.

I think you should deal with a good consolidation company that will look after all your problems and queries. BTW, has your lender sent you legal papers already? Or they have threatened you of a lawsuit?

well they haven't sent legal papers but my father is really good friends with the bank president. and he gave my father a heads up. credit solutions is the name of the company i am dealling with right now.

What was the problem with Credit Solution? Didn't they disburse the fund among your creditors?

credit solutions hasn't even contacted this bank yet. and it is really frustrating.

How long ago did you sign up with the company? When I signed up for consolidation, I was told it could take up to 60 days for each company to recieve letters from the consolidation company. So, it might be best if you give the bank the consolidation company info, and have the bank contact them instead.

Very true, it usually takes a couple of months for the payments to reach the credit companies. It is the responsibility of the consolidation company to communicate with you and give all the necessary updates.

I had applied with credit Solutions in August. They advised me that they are a SETTLEMENT company. The money they collect from you is their payment for lowering and settling your accounts. They told me that I had to set up a reserve account so that the money to pay the settled debts would be withdrawn by me and then sent to my creditors. Imagine I was going to have to pay them 340.00 a month for 3 yrs to settle 19k in debt. You do the math..... RIP OFFFFFFFFFFF

$340.00 per month for 36 months equals $12,240..you would save $6,760 with that type of program...that is not too bad. Remember that when you do debt settlement, if you end up settling too low, you will have to claim it on your income tax. I don't see anything wrong with the deal you got, unless you are saying that you are paying them $340 per months plus a separate payment for the balance owed. I guess you may need to clarify that.

NOOOOO you misunderstood! The $340.00 a month was their FEE. I was to set up a reserve account and deposit money in it to cover my future debt settlements. NO payment was going to be made to the creditors by Credit solutions. They were just going to SETTLE the debt when my reserve account had enough $$$$$$