I am totally new to the debt consolidation world and need help. I received a mailing from Discover the other day offering me a consolidation loan and so I've done a little research. I have a student loan, and three credit cards totaling $13,496.65. As of right now the student loan has an apr of 3% and one CC is at 8.99% the other two are at 0% because of balance transfers. I know that I have have a spending problem so every time I get my cards paid down I spend more money. As of this month I have nothing left in my bank account it's all going to pay bills - I have never been late with a payment. For two years I was working a second part-time job - therefore I had more money so I was able to spend more money. But, when I left that job I kept spending the money I didn't have. I need to know if debt consolidation is the way to go for me and my situation. Is there another way for me to learn better spending habits?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.