Has anybody heard of this type of debt consolidation?

Deja Q

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Fri Aug-29-03 06:34 PM
Original message

Has anybody heard of this type of debt consolidation?

www.debtxs.com

Debt arbitration is their business.

They've been around since 1998. Though not a member of the BBB, they've satisfactarily resolved any complaints people had against them. Some of these companies are new and I wouldn't trust them with a penny, but 5 years seems a solid period of time.

Has anybody had to do this sort of thing? Should I? As I'm already in debt consolidation that's getting me nowhere and has already adversely marked my credit rating anyway, I'll try any option short of bankruptcy. Chapter 13 is worthless and I'd rather avoid chapter 7.

Thanks!

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Demobrat

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Fri Aug-29-03 06:46 PM
Response to Original message

1. DO NOT give anybody any money to help you get out of debt.

Edited on Fri Aug-29-03 06:52 PM by Demobrat

Or to fix your credit. I can tell by looking at that site that they will try to get money out of you. There's a service, CCC, Consumer Credit Counselors I believe, that does this for free. A friend used them and swears by them. You say you are "in debt consolidation" now. What does that mean?

On edit:http://www.cccindy.com/pages/sb.html
Here's a link for you. I think what happens is you send them one payment a month and they parcel it out to your creditors.

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Deja Q

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Fri Aug-29-03 07:52 PM
Response to Reply #1

3. I'm already in such a service

Where I send them one payment and they divy it up... :-(

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Demobrat

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Fri Aug-29-03 08:33 PM
Response to Reply #3

4. Then why would you want to pay somebody else?

You're already doing the best thing. Nobody can make it magically go away.

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Deja Q

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Fri Aug-29-03 08:57 PM
Response to Reply #4

6. These people claim

That they negotiate with creditors to eliminate some of the debt I've generated. Up to 60 cents on the dollar, purportedly. Sounds rather fishy but if a company's been doing it for 5 years, I am quite tempted... especially if they can chop away 50% of my debt; I've probably paid that much in interest alone already. :-( :eyes:

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Demobrat

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Fri Aug-29-03 09:38 PM
Response to Reply #6

7. It might be legit but be careful.

Like I said earlier, don't give them any money. What they actually do is buy the debt from the credit card company for pennies on the dollar and then collect from you. Of course they can only do that if the CC company has already written you off. The CC company still makes money, because most of what's on your card is probably late fees and overlimit charges, not real purchases that some store or somebody actually has to get paid for. The fees and such are what go away when the new company takes over. Contact them if you're curious but ask a lot of questions. Make sure that every penny you send them goes towards your debt, nothing else.

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TNDemo

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Fri Aug-29-03 07:31 PM
Response to Original message

2. Try reading this book.

How To Get Out of Debt, Stay Out of Debt and Live Prosperously by Jerrold Mundis. Should be in the library. I was in over my head about 12 years ago and paid $5 for the paperback and it helped me tremendously. Gives you day to day living advice and tells you how to start anew and deal with creditors and says don't file bankruptcy. Anyway, worth a read. Hope it helps.

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Lars39

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Fri Aug-29-03 08:40 PM
Response to Original message

5. cheapskate monthly has a free rapid-debt repayment calculator

You can put in different amounts, terms and wa la! it will figure out the fastest way to get out from under. Her newsletter is pretty good, too, with good advice for living cheaper, and giving heads up on the latest financial stuff that can effect you, like the latest way credit cards have figured out to charge you, etc.

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