If Not Consumer Credit Counseling, How About a Debt Consolidation Company?

Thursday, July 8, 2010

If Not Consumer Credit Counseling, How About a Debt Consolidation Company?

If you have tried Consumer Credit Counseling or working with your creditor and neither of those options have worked for you, debt consolidation will definitely not work for you. In the end you will end up paying the same and borrowing your way out of debt is for sure not the way to go.

I happened to do better working with my creditors myself than Consumer Credit Counselors would have done. They had told me flat out I had done more than they could. But putting working with your creditors or a credit counselor aside, you have to change the way you do things to get out of debt.

You basically need to start a business plan, beginning with a budget. Check out our 5 steps to a perfect budget. You also need to look into getting a second job and put that extra income towards your debt and live on less than you make. It's that simple.

You are probably seeing numerous commercials for debt consolidation companies these days. DON'T DO IT! There are two main reasons not to:

If you go through a debt consolidation company to pay your bills for you, your credit report will look as though you filled chapter 13 bankruptcy.
If any company promises you it will be able to clean up your credit for you...run! They are lying to you or are probably working illegally. The only way transactions get removed from your credit report are by items being reported incorrectly or the items are seven years old or older.

If you haven't called your creditors yet, DO IT NOW! Like we say around here...The only thing you have to lose is your debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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