How much does it cost generally to pay a debt consolidation company?
Written By: admin on December 15, 2009
6 Comments
I was wondering how much does it cost to pay a debt consolidation company to help you, because I want to know if it’s worth it. I’m in so much debt making barely and I don’t know what else to do. On payday I usually just have 100-200 dollars to myself because the rest goes to my bills.
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Credit Counselors charge between $10-$50/month and get your interest rates cut a bit.
Debt Settlement companies usually charge about 15% of what you owe over the term of your program.
A mortgage debt consolidation will cost you from 1% to 4% of the amount you refinance.
What you should really look at is what is the total cost to get debt free, how long the program will take, and how low each can get your monthly payment.
Try to get a free consultation from someone, this page had a excellent review of your options and considerations so you choose the right path for your situation:
http://www.bills.com/blog/consolidate-debts/
Be vary wary of debt consolidation companies as they will often charge you very large fees and make you go deeper into debt, rather than helping you get out. This page offers some fantastic advice on practical ways to get out of debt: http://www.mahalo.com/How_to_Get_Out_of_Debt
depends on the company but its usually its a one time fee.
A lot of times they take you are charged a percent of whatever you are saving (you’ll still end up saving in the long run). You can also look into certain non-profit debt help agencies that will not cost you. Read more at http://gettingthroughdebt.blogspot.com
possess as much information as you could maybe is one of the options,but it is quite time consuming,here http://www.DebtFreetips.info/debt-free.htm is the resource i have ever had excellent experience.
Sorry to hear about your struggles, but there are better ways out than going through a debt consolidation company. So many of these places are ripoffs that take your money. Sit down and make a budget, starting with necessities first. See how much money you really have to pay your debt. Choose how much you can pay each creditor and call them up and clarify this. Question them to lower your interest rate and show them your budget and they’ll work with you. Go see Dave Ramsey’s web site. http://www.daveramsey.com and buy the book total money makeover for $15. Excellent book on budgeting and understanding money. It will help you get this taken care of. Excellent luck!