Question by : has anyone used a credit card counciling service for debt consolidation?
I am thinking of dealing with Clear One Debt Relief and it sounds to good to be true. What makes me leary is that they want me to go delinquent on my cards before they will step in and they will take my payments out of my checking account each month. They say they can take my $ 15,350.00 credit card debt and reduce it 47% but they will not deal with the company’s until I am delinquent for at least 2 months and there is no guarantee that these company’s will take their offer. I want to read the contract but I have to sign up first. Has anyone else been screwed by any of these company’s?
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Answer by Daphers
My bestfriend has been screwed by one of these companies. They let her go delinquent and even though they were taking out the money every month, they never paid off the credit cards. I would deal with the credit cards myself..call them and see what kindda deal they can offer you.
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Tags: anyone, card, Consolidation, counciling, credit, Debt, service, used
I tried once, but since I could not afford to put all of my debt with them they still charged me the fees like I did and I still ended up in bankruptcy.
Don’t allow that to happen(going delinquent) call & deal with the credit card Company yourself. One of the first things you should do is call & ask for a lower interest rate.
Stay away from any “debt consolidation” company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
See this as an example of what can go wrong with debt settlement:
http://www.ripoffreport.com/Credit-Debt-Services/Debt-Settlement-Amer/debt-settlement-america-dsa-6a285.htm