Why is it that debt consolidation agencies cause your debt to go up if you sign with them?

Yahoo_Asker_G asked:


Are these agencies non-for-profit or not? Example: Credit Gaurd of America

Joyce

Tags: Consolidation Debt, Debt Consolidation Agencies, Non Profit

This entry was posted on Monday, June 29th, 2009 at 11:37 am and is filed under Debt Consolidation. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

4 Responses to “Why is it that debt consolidation agencies cause your debt to go up if you sign with them?”

1. sallyfrmdavalley Says:
   June 30th, 2009 at 11:45 pm

   Michael

   Here’s the deal. They are classified as non profit because they don’t charge a fee. However they make their money by requiring you donate X amount of dollars a month to support their business.

   They’re actually a great idea. They have the ability to either reduce your finance charges if not eliminate them so that you are actually paying down your debt. In addition to that they have the ability to lower you monthly payments. Overall you’re benefiting from using them even though it may cost $20 a month.

2. ekibitz Says:
   July 1st, 2009 at 4:54 am

   Joshua

   I think they’re a good idea if you need some negotiating, like to get fees removed, lower interest rates, etc. If you don’t need the negotiating but need help seeing how to manage and pay off your debt yourself, see this debt elimination calculator…

   One of the problems with lowering you monthly payments is that it usually takes longer to get it paid off and getting it paid off should really be the goal.

3. mark w Says:
   July 2nd, 2009 at 3:24 pm

   Bernard

   May be I Can Help You:

   Just try:

   They Will Definetly Help You

4. Miss Know It All Says:
   July 4th, 2009 at 5:19 am

   Dustin

   To boost your credit score:
   The first thing you will need to do is call the three major credit reporting agencies and request a free copy of your credit report.

   Then once you get those in the mail (7-10 days) there will be a dispute form attached to the reports. Fill those out for every negative account on your report regardless. Fax, mail go online whatever it takes to get those submitted as quickly as possible. Then those companies must answer your dispute within 30 days or it is removed from your credit report completely. So that will eliminate some things, hopefully.

   Then make sure you pay all your revolving accounts to below 50% of your credit limits.

   Make sure that you make all your payments no more than 20 days from the date it is due.

   Good Luck!