Combining Debt - Debt Consolidation Frauds

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Combining Debt - Debt Consolidation Frauds

Settle Debt Dues Faster. Low Interest Rates - that is the buzz.

The fact is that only the debt consolidation company benefits from this one. They buy - yes buy - a lower interest rate from the company you owe money to by negotiating payment of thousands of dollars of debt. You are charged a fee for this service and a monthly fee then.

The debt consolidation supplier pays off your loan fast, you don't. You keep paying them rather.

If you thought making regular payments by your due date was expensive, try making ONE LOW Payment monthly.

These companies only buy bad debt to lower the interest. They will buy groups of debt - thousands of dollars of debt from a company to get the lower interest rate - plus they get a percentage kickback from your financing company to reward themselves for payment of that balance due.

Debt consolidation scam fees are included in your monthly payment - So practically you pay as much as you would have if you had sent that extra payment to your credit company and paid off your higher interest rate credit card faster by adding that extra fee to your payment monthly. Actually, you pay more.

They don't re-negotiate your due date. That means that they pay everyone's debt at the same time, once a month.

If they repay on the 15th of the month and your payment was payable on the first, then your credit will take a 30-day late payment once a month - every month-on all three of your credit reports. Late payments stay on your credit history for 7 years (or longer). Feeling good now, I'll bet!

That's not all. You could also be one of those persons whose payments get skipped once in a while - Yes it takes place all the time with Debt Consolidation techniques.

Negotiation is something you can do on your own. If you just hate talking to these people you can even authorize someone you know and trust to negotiate a lower interest rate for you on your behalf. If you can't get anywhere negotiating with the first person you talk to, ask to talk to a higher authority. If you can't get anywhere by the third supervisor, you're caught.

- Negotiate your own reduced Interest rate

- Extend your repayment schedule

- Pay off the highest interest debts First and add extra money

- Write 2 checks: One for the minimum payment and One for any additional money with a note in the memo that says: "Principal Only Payment." This one simple step can save you tons of money. If you don't mention this, your money is automatically used to the interest and you'll pay more interest for an extended period. Yeah, that really sucks, definitely not for them. For you.

- Figure out - there are free debt calculators all over the internet - what it would take to pay off your highest interest cards first. I plugged in my own and came up with the fact that if I add $60 a month to my minimum credit card payment, I can have a $1300 debt paid in 12 months with $66 interest.

- If I proceed with the minimum payment, It can take more than 6 years and cost me over $2500. Simply that one action on my part put over $1134 back in my pocket - in one year. And I did it myself. Without debt consolidation fees!

I don't recommend any debt consolidation company. They prey on your desperation and the doom and gloom of the length of paying back your credit cards at minimum payments.

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