I am thinking of using a credit consolidation service? Will I regret it?

Question

I am becoming overwelmed with debt and do not qualify for a consolidation loan. What are the consequences to joining one of these programs? Can anyone give me additional resources? I have been searching the net, but all I seem to get are advertisements for different companies. I am searching for detailed information on the programs in general. HELP!

Answer 1

If your debt is over a certain amount, and you really cant afford repayments etc, look into an IVA - Individual Voluntary Arrangement.

The short story is that they take all your debts on. Arrange with you an amount you can afford a month, take this to a meeting with all your lenders and say that you cant afford to pay them what you owe, so by accepting an IVA they'll get, say 60% of what you owe, otherwise you'l declare bankrupcy, where they would only recieve, say 20% of what you owe - so its within their intrest to aggree to the IVA.

Then all your interest gets frozen, and the new amount is put in place!

I did this last year, it lifted a whole weight off my shoulders, and i had £9k wiped off my total debt ammount.

It does mean you cant have any credit for 5 years, but this doesnt affect any mortgages as its your name affected, not the property - but you have to shop around for a good rate!!!

Hope this helps!!!

Answer 2

You will not find alot of details as most of these "services" are just higher loans to you.  That are really just interesting in getting you to "sign-up" (read pay a fee), to see if you qualify Once you are hooked there are fees to pay and more interest.  A lot of them are scam to read the follwoing

http://www.crimes-of-persuasion.com/Crim...