@Shermy05 I would urge caution on using a debt consolidation company. First, a debt consolidation company is not applying all the money paid to them to the debt itself. I'll use your example below of the $100 payment. Please bare in mind I am making up numbers to illustrate a point. ** Please also realize there is nothing a debt consolidation company can do that you cannot do for yourself. ** You too can negotiate, although it may be intimidating, you can do it!
This company negotiated a $100 per month payment for their client to send them. This same company has negotiated perhaps only $75 total payment due to debtors, pocketing $25 of your hard earned money in their pocket. That is generally how debt consolidation works. So the $100 you thought was going towards debt is really only $75, prolonging everything. Something to think about. I have helped any number of my clients negotiate with their debtors. We literally have a 3-way conversation.
In my experience people generally feel a short-term sense of relief getting the debtors off their backs and stopping those collections calls. But the deeper issue is to understand 'why' you end up in debt in the first place. Sometimes it is due to circumstance beyond our control (extreme medical crisis), but in most cases it has to do with living beyond our means, and not making wise choices with our money. <-- been there, done that - which helped me change my life and become debt free in all things, and saving for the future. 🙂
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