Debt consolidation company claims

I've signed up with a debt consolidation company, and they say they can negotiate my debts down. I'll supposedly be paying about 60% of my debt. Here's the part that has my "Spidey Sense" tingling.
They say that I should just stop paying my bills, and when I start getting calls from the creditcard companies ( when I'm in default ) I respond to them by saying this debt company is now handling my business.

They say that can only act if an account is not in good standing.

They also say that after they negotiate the settlements, they work with the companies and reporting agencies on a "credit improvement plan" to help your report look better.

Am I carzy to try this or will my credit suck for years after this?. I'm kinda desparate to get this debt paid down as quicly as possible. HELP! I'm in the state of California

Yes, you are crazy to even consider this scam. Your credit will be ruined and you could very well end up owning more than when you started. Spend some time surfing the net on some of these chat boards and you will see postings by hundreds of people burned by these scams.

Try to work with the credit card companies themselves to get a lower interest rate. Its difficult but it can be done. Ask them if they have an "assist" program and give them a sob story...then when they lower the interest rate, pay them as much as you can until its paid off.

You would be better off just not paying the credit card companies and deal with the collection agencies yourself when they come calling (and they will!). Your instincts about the company you are considering are right on. Don't do it!

Jackrabbit & Solange Farewell,

Thanks for your counsel. I've actually already lowered my interest payments with all the cards. It was remarkably easy. I just called them and asked them to lower the rate an when the amount they were going to lower it was pretty small, I asked to talk to a supervisor, and it got lowered more. Jackrabbit, you were talking to Consumer Credt Counselours and yes they are ru byt the cedit card companies, and don't give you all the options , like bankruptcy. This company that I'm dealing with is endorsed by the consumer advocate David Horowitz or rather I got the reference through his endorsd website: lowermybills.com.

I'm going to ask a tax attorney or credit person about this and I'll report back**************Thanks for the feedback

Jackrabbit & Solange Farewell,

Thanks for your counsel. I've actually already lowered my interest payments with all the cards. It was remarkably easy. I just called them and asked them to lower the rate an when the amount they were going to lower it was pretty small, I asked to talk to a supervisor, and it got lowered more. Jackrabbit, you were talking to Consumer Credt Counselours and yes they are run by the cedit card companies, and don't give you all the options , like bankruptcy. This company that I'm dealing with is endorsed by the consumer advocate David Horowitz or rather I got the reference through his endorsd website: lowermybills.com.

I'm going to ask a tax attorney or credit person about this and I'll report back**************Thanks for the feedback