Are credit card consolidation company a scam:
Most aren’t but they are not necessarily a solution unless you have enough self control to get rid of your cards once you consolidate. They are lending companies who’ll loan you enough to pay off your credit card debt at a lower rate but you’ll still owe the money.
It’s hard to find one these day’s that will assist you without a fee. Thing is if you use a credit card consolidation to pay off your debt this actually looks bad to the 3 credit report agencies instead of you doing it yourself. So be carefull before you decide to use a credit card consolidation because it actually works against you even if your trying to do a good thing like get out of debt. it is still reported
Getting a consolidation loan doesn’t require a special company. You can go down to your local band and get a consolidation loan.
What you need to be aware of is that consolidation loans are not reducing your debt. They are just spreading it out more so it will take you longer to pay it off. If you are trying to reduce monthly payments and just can’t scrape together enough to make the current monthly payments, then it might help you. I’d strongly advise trying to find another way and just work on paying you debt down.
Make a list of all of your debts and the percentage rates associated with each loan. Put these in order not by the balances you own or by the monthly amount….but by the percentage rate. Highest rate goes first. Put any extra money that you might have towards paying down the highest interest loan first. Then, when it is completely paid off, move on to the 2nd highest rate.
