debt consolidation, credit pay offs, etc.

[CYMBOL]

Hey guys,

I keep seeing these commerials, or hearing radio adds saying these companies can cut your interest rates in half, and help pay off your credit cards in half the time, etc.

Anybody ever used one of these services or known someone who has? Did it help, or was it a rip-off?

Which company's are known to be scams vs. ones that are legit?

Basically, I keep having credit card companies screw me complete scams (major companies).

One scam is: They move your due date up a week or two, you don't notice and send it at your regular time and now it's late. They spike your interest rate waaaay up.

Another scam is reducing your credit limit. So, if you have a 10,000 credit limit, and owe 6,200, they lower it down to 6,000. Now, your are automatically OVER your limit - BAM, they spike your interest rate because you are "high risk". Even though, nothing changed.

Total scam artists. I would love to just be able to honestly pay off my cards at the interest rates I accepted, but they make it impossible.

I'm ready to try one of these programs just to get back at these companies. I am pretty sure this will look bad on my "credit report", but you know what, the companies don't even care about that anymore, so I don't really care. I'd rather have the cash in my pocket then in there's - they can keep their cards, I don't want them.

[mikejet]

Contact the credit card companies directly and try to settle on your own. You can get good results if you have the cash on hand to make a lump sum payment.

A lawyer is better at helping than those consolidation companies. Many of those companies ask for a fee upfront regardless if they can help or not.

[fatediesel]

The debt consolidation companies can't do anything the average person can do. If you are going to use one at least make sure it's a non-profit as you're less likely to be scammed.

As for your credit lines being lowered and interest rates being raised, that is because of the new credit card legislation that is being passed that will prohibit companies from raising interest rates or lowering credit lines for no reason. Most credit card companies raised rates/lowered lines before the legislation went into effect. 2 of my credit cards raised their interest rates for no reason.

[jw]

Originally Posted by mikejet

Contact the credit card companies directly and try to settle on your own. You can get good results if you have the cash on hand to make a lump sum payment.

A lawyer is better at helping than those consolidation companies. Many of those companies ask for a fee upfront regardless if they can help or not.

What makes a lawyer any different?

[mikejet]

Originally Posted by jwbbud

What makes a lawyer any different?

They'd be better at helping you with your rights and working with a company. My coworkers have successfully used lawyers to help them renegotiate their home loans, they should be able to help with debt too.

Of course the hard part is being able to afford a lawyer when you are in debt.

[CYMBOL]

Originally Posted by fatediesel

The debt consolidation companies can't do anything the average person can do. If you are going to use one at least make sure it's a non-profit as you're less likely to be scammed.

As for your credit lines being lowered and interest rates being raised, that is because of the new credit card legislation that is being passed that will prohibit companies from raising interest rates or lowering credit lines for no reason. Most credit card companies raised rates/lowered lines before the legislation went into effect. 2 of my credit cards raised their interest rates for no reason.

Yeah, I know the new legistalation (which doesn't go NEARLY far enough) is what the cards are using as a "reason" to screw people these days. The only difference between now and then, is they can hide behind a "reason".

I had one card spike for no reason - and two cards (which I payed off several months ago and haven't touched), both got cancelled on me.

All my cards are paid way over the min, but they keep spiking and I'm tired of it.

Usually, contacting the companies myself has done little to no good. Besides, the worst I can threaten them with is that I'm going to transfer the balance - which I've done, but usually end up with a card company that is just as nasty.

They make this so tiring.


According to this, basically, these companies don't truly do anything.

http://www.msnbc.msn.com/id/18155301/