Do debt consolidation companies always request a settlement with the creditors?

Posted by Anonymous in: Debt / Credit
I am considering using a debt consolidation company, but I want to make sure they are going to act in my best interest.

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Debt consolidation companies do not always request a settlement, but they normally do. They make money by charging your a fee for negotiating with your creditors. As far as getting our of debt, you have a couple options, the last of which is chapter 7 bankruptcy. First, try calling your creditors and see if you can lower your APR or interest rate on those account. Next, try debt snowball, meaning make the minimum payments on all accounts except for the account with the highest interest rate, then put as much money as possible towards that account. Once, that is paid off, do the same for the next highest interest rate... and so on. Lastly, if you simply can't make any payments call your creditors and try negotiating with them. If you can't agree on a debt settlement, then I would consider using a debt consolidation company.

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Posted 1 year ago by Brian Robertson (view professional profile)

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