How do debt consolidation companies make money?

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5 Responses to How do debt consolidation companies make money?

  1. SHANNON says:

    CEDRIC

    by pretty much bilking people further?

  2. BENNIE says:

    ADAM

    They charge a fee

  3. EDWARDO says:

    HOLLIS

    interest

  4. SON says:

    TRACY

    Its fake…..they pay them to stop the debt and then they make you pay them back like twice as much.

  5. ROB says:

    FRANCIS

    They charge you a fee to handle your situation. That’s how they make their money. Sometimes they work their fees into your monthly payment and the total still comes out less than if you were trying to pay all the bills separately.

    Nobody legally reduces their debt from $40K to $10K without filing bankruptcy. Beware of those exaggerated claims.

    If you are really behind in payments and the creditors think you are a heartbeat from filing bankruptcy, they will negotiate to reduce the amount you owe by about 30-35%. That’s how the consolidator gets your debt reduced, but not by 75%!

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