Edward Scissor hands asked:


What is a good debt consolidation company that will negotiate what you owe by negotiating with the creditor, and then you owe less than before to each creditor, but you owe them for one big new loan , to them for paying your debts?
So they are getting your debts down by negotiating and then give you a consolidation loan to cover the amount owed to them now?

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Sam asked:


Also, can a revolving line of credit (it’s also a atm card) be included in a debt consolidation? And can I choose to leave out a loan or specific credit card where I have 0%?

Debt Consolidation

Kevin B asked:


A friend of mine is considering doing debt consolidation and I’ve heard that these types of businesses may be crooked. Can someone give me their honest opinion on if it is a good choice for someone with an extremely bad credit rating.

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Josh F asked:


I am now working full-time and although I’m not making a ton of money; would it be in the best interest of me to consolidate my loans and start paying them off now rather than later?

Also, does anyone know how you go about getting the bills from your loans sent to you earlier than the 6 month period so that I can take them with me to the bank and set up a consolidated loan?

Thanks in advance for any responses : )

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Heart asked:


When you consolidate debt, it shows all old debts as being paid, etc, but the one new debt ratio, which is the amount being owed to the consolidation company will be huge. QUESTION: Does It lower the credit score to have a huge debt ratio like this?
OTHER QUESTION: and you also want to have say, 3 credit cards, (3 of them is the number you want to have a good credit profile, right), then the debt consolidation companies close your credit cards or do they not? How does it work

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jimmyaven asked:


I have two credit cards that I have used over 5 years ago and never paid back. The total of the two cards FIVE YEARS AGO was $1000. Of course, by now, it should be close to $3000 because of all the interests.

What does debt consolidation do? More importantly, can it REALLY remove or reduce the interest that built up over the last 5 years?

When doing a search for debt consolidation services, I get THOUSANDS of results. Which debt consolidation services are better?

Detailed answers would be appreciated.
Update: Am I correct to assume that if I leave the debt as it is, I can have it completely wiped off my credit card two years from now as if it never happened?

Debt Consolidation

Angela B asked:


I only have $20,500 in student loans. I’ve heard some bad things about interest rates with Sallie Mae, while Nellnet will only consolidate if you have at lease $30K in loans. Any suggestions. I do believe that I only have 2 lenders. I was reading that if you consolidate you might lose out on the borrower benefits that the lenders offer, i.e., lower interest rates if the rates should drop. Please offer good advice. thanks.

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