Legal Question in Credit and Debt Law in California

debt consolidation

I have many credit card bills. I want to know if it's a good idea to work with the credit card debt consolidation companies. They claim that they can negotiate with my lenders to cut down my bill by up to 50%, lower the interest rates, and still won't ruin my credit in any way. As a matter of fact, it's the other way around. Is any of these statements true? Or should I get a loan with low interest rates from a bank and consolidate all my bills that way. What do you recommend? Thanks so much for your response.


Asked on 5/30/07, 1:27 am

3 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: debt consolidation

Some of the companies that claim they "negotiate with your creditors" are total scams. If you can obtain a loan from a bank, this might be a good way to go. Check out creditboards.com and suzeorman.com .

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Answered on 5/30/07, 4:06 am
Jonathan Stein Law Offices of Jonathan G. Stein

Re: debt consolidation

If you want to negotiate with the credit card companies, do it yourself. Do not hire a company to do it. The credit card companies will work with you if you explain your problem.

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Answered on 5/30/07, 4:02 pm
Bryan Becker Stutz Artiano Shinoff & Holtz

Re: debt consolidation

As many of the attorneys who work on behalf of consumers can attest, I have heard of nothing but bad experiences with these types of companies. If you choose this route, be very careful and do your research.

Best of luck to you.

-Bryan

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Answered on 5/31/07, 1:57 am


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