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Recently I contacted an agency regarding debt consolidation. They set up a payment plan and sent autorization papers for the first payment to be automatically withdrawn from my checking account. In reading the contract, I noticed that it stipulated that the entire first payment was to be a "deposit" paid to the agency (and refundable upon completion of the contract.) However, this means that my creditors won't receive payment for one more month. The agency informed me that credit card companies require this "deposit", and once it's made, will stop calling. Does this sound right?

Also, will it hurt my credit more to enter into consolidation or to let the already past due payments go for another month or two before I can start catching up on my own.




Hi kimb515

Welcome to the forums. Please do not worry as it is the responsibility of your agency to negotiate with your creditors and reduce or eliminate the financial charges and make you debt free.

The debt consolidation companies have a very healthy relation with the creditors and will help in eliminating your debt within a fixed period of time.

Quote:
Also, will it hurt my credit more to enter into consolidation or to let the already past due payments go for another month or two before I can start catching up on my own.



The debt consolidation program is designed to reduce the debt of the consumers over a certain period of time. It appears in your credit report and gives the impression that you have taken the responsibility to pay back your debt. All the multiple payments are consolidated into one easy monthly payment and hence there is no chance of missing any payment.

It is nice on your part that you have taken the positive step to reduce your debt and hence lead a debt free life.

Please keep posting your comments and suggestions in the forums for the benefit of the community members.

Regards
Roxette

Sub: #1 posted on Fri, 06/03/2005 - 23:33

roxette roxette

(Posts: 4009 | Credits: 559.9)

I'm new here, just wanted to say hello and introduce myself.

Sub: #2 posted on Fri, 08/22/2008 - 09:43

Unregistered


Welcome to the community. You should sign up and become a member here. :D

Sub: #3 posted on Fri, 08/22/2008 - 20:16

mobile0311 mobile0311
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