Combining Debt - Debt Consolidation Swindles

Settle Debt Dues Faster. Low Interest Rates - that is the buzz.

The fact is that only 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 thereafter.

The debt consolidation supplier pays off your loan fast, you don't. You keep paying them rather.

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

These companies only buy bad debt to reduce the interest. They will buy collections of debt - thousands of dollars of debt from an organization to get the lower interest rate - and in addition they get a percentage kickback from your credit company to reward themselves for payment of that balance due.

Debt consolidation scam fees are included in your monthly payment - So practically you pay as much as you would have if you had sent that extra payment to your credit company and paid off your higher interest rate credit card quicker by adding that increased fee to your payment each month. Actually, you pay a bit more.

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

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

That's not over. You could also be one of those people whose payments get skipped once in a while - Yes it takes place all the time with Debt Consolidation techniques.

Negotiation is something you can do on your own. If you just hate talking to these people you can even approve 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 initial person you talk to, ask to talk to a supervisor. If you can't get anywhere by the third supervisor, you're caught.

- Negotiate your own reduced Interest rate

- Extend your repayment schedule

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

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

- Figure out - there are free debt calculators all over the internet - what it would take to pay 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 repayment, I can have a $1300 debt paid off in 12 months with $66 interest.

- If I proceed with the minimum payment, It can take more than 6 years and cost me over $2500. Simply that one action on my part put over $1134 back in my pocket - in one year. And I did it personally. 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 repaying your credit cards at minimum payments.

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