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I'm in a number of different credit card debts right now. Is Debt Consolidation like Debt One Solution a good choice?

I heard they will work with me in consolidating all my debts into one low payments for four years to make it easier to pay my bills. Is it a good choice?

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  • 2 months ago

    These companies that claim they can get your interest rate reduced and combine your debts into one payment wouldn't be doing anything you can't do yourself!

    Fact is most banks will NOT work with you should you get in over your head! They want their money and will take you to court and sue you if you stop paying! These debt solutions companies do nothing but take your money! All you are doing is paying them to do what you can do yourself!

    If you are in over your head I suggest you get a second job to pay off your credit cards because the creditors, debt collectors will keep coming after you! They WILL sue you for a judgement, and win and garnishee your wages!

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  • Anonymous
    2 months ago

    I don't know anything about Debt One Solution.  In order to find out, I would go to the Better Business Bureau and see if they have any complaints.  I'd do a search for "best loan consolidators" or something to that effect.  I'm sure that there are plenty of articles/reviews on these companies advising who's best and who to avoid.

    Either way, what you're doing is a great idea.  Give your debt to a company that will pay it off for you and then turn around and charge you a substantially lower interest rate for repayment.

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  • Anonymous
    2 months ago

    You can do it yourself and save the fee!

    Contact each creditor.

    Have them suspend the use of the credit card, but not close the account.

    Make a schedule to pay the debt.

    Follow your schedule.

    Some will also suspend interest payments.

    You need to stop using credit cards.

    If you don't have the money, you don't buy anything.

    Simple.

    Now get used to it.

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  • 2 months ago

    If they are going to charge you for this service, no. Consumer Credit Counseling Services do not charge--and they can do the same things. 

    You'll only be incurring yet another debt if you use the service or services you listed. That's not smart. No--it's not a good choice, in other words, especially when the service they provide is not 100% complete and costs you more money, and you can get better service for free. 

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  • 2 months ago

    Personally, I think it is the stupidest thing to do ever.  Why pay some company to consolidate your debts when you can put that money toward your actual debts?  You don't need them consolidated.  If you can't keep track of who you owe money to, write them on a piece of paper, along with how much you owe.  You should also get statements each month.  As you pay them off, you should be able to see your last payment made to each creditor.  If you aren't retarded, it shouldn't be that difficult, unless you have 50 or 100 creditors.  That would be hard to keep track of.  If they are offering to do it for free, it's a scam.  They don't work for free.  They will get it out of you in the payments somehow, without your even realizing it.

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  • Judith
    Lv 7
    2 months ago

    I've never heard of debt consolidation working for one single person.  Better to pay off your debt using the snowball method.  Since you obviously live beyond your means, I'd bet the farm (if I had one) that if you consolidated debt to a low monthly payment, it wouldn't be long at all before you go out and incur new debt.

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  • A.J.
    Lv 7
    2 months ago

    That's Debt Solution One, which is one of many private and agency businesses in the field. Their branch of this field, with many competitors, specializes in one of a few options. They only tell you the good parts, and avoid telling you the bad parts. Theirs is generally not your best option.

    First before anything else, you need to think about how you got into the situation and how you will change not to let it happen again. Suppose one of your options is all the debt is wiped out, and all of your credit cards are torn to bits, and nobody will lend you money for at least 5 years? That is a form of bankruptcy.

    Debt Solution One is a private company that contacts your creditors and tries to negotiate lower balances and interest rates and they charge a fee for the service. They also set up an account that you pay into and they pay out of.

    They act as a negotiator and money handler and debt settlement.

    It is generally the method you should avoid as your worst choice.

    https://www.creditkarma.com/advice/i/debt-settleme...

    https://www.consolidatedcredit.org/debt-solutions/...

    Your options are-

    * Work with your creditors on your own. State you are considering bankruptcy, and would like to avoid it by an interest rate reduction and full balance payment plan.

    If you have a way to pay everything off at low interest rates, that is one option.

    * Work with a non-profit or government funded agency-

    They will discuss things with you.

    * Bankruptcy - Two versions. One arranges payments for a few years and then cancels whatever balances remain. The other looks at all of your assets, arranges to wipe out your cash and most things of value, and cancel all the debt.

    In both of these, your credit is bad for a long time.

    * Refinance - Generally if you have home equity or other assets to borrow against. Debt consolidation without assets to borrow against with collateral should only be done through government assistance and charity backed.

    Debt cancelled that is not ordered by a judge will generally be considered income and you pay taxes on cancelled debt. Debt not paid back in principal will hit your credit report badly.

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    • A.J.
      Lv 7
      2 months agoReport

      See if they will offer a lower rate so you do not declare bankruptcy. That is all the paid people will do. You must pay down the debt. Or, see a bankruptcy lawyer..

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  • martin
    Lv 7
    2 months ago

    Yes, it's good advice. Also, add that if you do receive a windfall, use it to pay down your debt balance.

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  • 2 months ago

    I haven't heard of debt one solution but if it's a company that charges then I'd swerve it as in many places there are debt charities that will do the same service for free. It's more time consuming but you can make offers to creditors yourself as an alternative to using a third party to manage it for you. Most creditors accept these arrangements because really they have given you the credit without checking that you can afford it and a judge won't be pleased with them. Number one rule though, even if they reject your offer, still pay the amount that you offered, they still have to accept the payments and that helps you in court if it gets that far. At the end of the day no creditor has to accept a lower payment than the original agreement but a judge can make them accept it if you have given them a comprehensive breakdown of your income and outgoings and, have been paying them at least something. I would not take out a debt consolidation loan, if I couldn't pay I'd just stop using credit.

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