Combining Debt - Debt Consolidation Ripoffs

Repay Debt Faster. Low Interest Rates - that is the hype.

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

The debt consolidation provider pays off your loan faster, you don't. You keep paying them instead.

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

These companies only buy bad debt to minimize the interest. They will buy collections of debt - thousands of dollars of debt from an organization to get the lower interest rate - as well as they get a percentage kickback from your financing company to reward themselves for payment of that loan.

Debt consolidation scam fees are built into your monthly payment - So in the real world you pay as much as you might have if you had sent that extra payment to your credit company and paid off your higher interest rate credit card sooner by adding that increased fee to your payment each month. Actually, you pay extra.

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

If they pay on the 15th of the month and your payment was due on the first, then your credit will get a 30-day late payment once a month - every month-on all three of your credit records. Late payments stick on your credit history for 7 years (or more time). Feeling good now, I'll bet!

That's only a few. You could also be one of those persons whose payments get omitted once in a while - Yes it happens all the time with Debt Consolidation practices.

Negotiation is something you can do by yourself. If you just hate talking to these people you can even empower someone you know and trust to make a deal for a lower interest rate for you on your advantage. If you can't get anywhere negotiating with the very first person you talk to, ask to talk to a higher authority. If you can't get anywhere by the third supervisor, you're trapped.

- Negotiate your own lower Interest rate

- Stretch out your repayment schedule

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

- Write 2 checks: One for the lowest payment and One for any additional money with a word in the memo that reads: "Principal Only Payment." This one simple action can save you tons of money. If you don't mention this, your money is automatically taken to the interest and you'll pay more interest for a longer period. Yeah, that really sucks, but not for them. For you.

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

- If I carry on with the minimum payment, It can take longer than 6 years and cost me over $2500. Just that one action that I took put over $1134 back in my pocket - in one year. And I did it on my own. Without debt consolidation costs!

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

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