Need some debt consolidation help if possible

[Quetzal]

a friend of mine has about 15000 in credit card debt that he is looking to pay down. He lives in a very small town and I don't think there is any debt-consolidation merchant there that he trusts that can help him with this.

I know there is a lot to be wary of with debt-consolidation agencies - is there any organization out there (non-profit preferably) that has a credible streak with it?

what are some of the issues involved with debt-consolidation companies out there? I know you may be drawn into a package that is actually worse than what the debt is - such as paying more on the debt or having an even worse interest rate.

Is there any debt-settlement companies out there that can be effective with his debt payments?

thank you in advance

Quetzal

[Starbucks Anarchist]

1. He should try Take Charge America.

www.takechargeamerica.org/

They're very reputable and put you on a five-year plan (maximum) to pay off your debt with monthly payments.

[Quetzal]

4. thank you

I will recommend if it comes to that

I told him try to go to his local credit union first but if that doesn't work out I will keep this option open.

[Starbucks Anarchist]

7. No problem.

Let me know if either of you has questions.

[MrsBrady]

2. we got a consolidation loan

and at a reasonable percentage rate.


credit cards are in the desk drawer and not used.

that way our credit stays open and we pay down the debt in reasonable time.

why not try this option?

[Quetzal]

3. wow, that's smart

sounds like a good idea I can share. thank you.

i just explained to him the difference between deficit and debt.

[Curmudgeoness]

6. One caution, do not do a debt consolidation loan if you

will have to put any collateral up (like home equity loans). Credit card debt cannot take any assets if you find that you are not able to pay it, but once you put collateral up for this uncollateralized debt, you stand to loose your house (or whatever it is that you sacrifice for collateral).

[MrsBrady]

9. as per the other poster...

our loan was strictly a consolidation loan through our credit union.

We did not borrow on our home equity. It was just a consolidation loan...no colateral needed.

We bank with the credit union, I have my car payments through the credit union...
And we are both employed...so I guess they just gave us the loan. no colateral.

[Curmudgeoness]

5. I am told that credit counselors associated with the NFCC

(National Foundation for Credit Counseling) are the only ones you should go to, although I would have a problem trusting anyone.

My niece got into a lot of credit card debt, and she borrowed enough money to make offers on her own to the credit card companies, she did not go to any credit counselor. But what worked was that she could offer to pay X amount immediately. This is still hurt your credit ratings, but it costs nothing to lawyers or credit counseling companies. All the money used goes to the actual debts.

Good luck to your friend.

[applegrove]

8. Try the local credit union or bank.