credit card collection

[guest]

renton,wa. recently my credit cards have went to collections in which the accounts have been closed and credit card company is charging me over the limit fees as all as late charges they keep calling me . my only other option was debt consolidation as this stops all fees is this true? and is this the best solution? sincerly consumer.

 

[Jeter]

There are many factors that must be taken into account before the best solution for you can be determined, such as: How many credit cards ? How much debt? How far behind? Were they all closed? Is all your debt from credit cards? What types of credit cards are they?

Debt consolidation programs work best with a variety of credit cards. Different creditors give different benefits. Some give no benefit at all. However, the composite payment and interest rate is usually better than it is now. Usually creditors will cease late charge and over limit fees as an incentive of being on a debt program.


Jeter

 

[JETX]

A few warnings about these 'non-profit debt consolidators'.

1) Most of them actually work for (and get paid by) the credit issuers. Once they have your information (bank, debts, assets, etc.) they can turn this over to their 'owners' and it can be used against you.

2) There are all kinds of scams in that business. One is that they take your first months 'payment' and escrow it (meaning they get to use your money 'tax free' without interest... this is called 'float'). Then, if you do not fulfill the program that THEY create for you (and it could mean payoffs for years, very few complete the entire program), then they get to KEEP your escrowed money.

I suggest that you do a LOT of research before considering ANY consolidator. Also, for some good information on this scam, click on http://www.budhibbs.com

 

[Jeter]

this is very true and a good warning to consider. If you do decide to go the way of debt consolidation, I know that Ameridebt is a good company. Check out their website. There are other companies that are probably good also. The litmus test is to find out if you need to make a primary payment equal to your monthly rate to get the program started. If so, then go somewhere else. A legitimate non-profit company will let you know up front that there is NO FEE or up front payment required. Your first payment will go to your creditors as will the rest.

Jeter