Debt consolidation?

This is embarrassing to write about, but each month I seem to be barely making it, and sometimes NOT making it till the next paycheck. I see these services advertised for debt consolidation and lowering interest rates, etc. Some say they are free services. Has anyone here had experience with this. I always pay my bills on time and have excellent credit rating, but it's just getting harder and harder! Most of my expense is due to the cost of tuition toward my MA, which I'll finish this fall and get a substantial raise after that. I just hate having these debts!
Advice appreciated.
Patty

Patty,

I have not had experience with these groups, but I have heard of scams associated with them.

I would make sure to check the better business bureau ( http://search.bbb.org/ ) before using one to see if they have any complaints. I think you are also supposed to look for one that is not for profit.

I'm in the same boat right now as well. I'm in real estate and the market is crap right now. I haven't had any income in the last 3 months at all. I don't have good savings either as I am horrible with money. I'm thinking about looking into either refinancing my home or opening a home equity line.

Thanks, Gemstone...
From exp, I can tell you...don't go with a home equity loan...
I did that with my other house. It sounded so good...low interest at the startup, but shortly thereafter, I kept getting notices of increased interest rates. I've actually had two of those home equity loans, and it was the same with both of them. I finally managed to sell the house and pay them off, downsizing considerably.
It seems there is no quick fix for debt!
Patty

patty, there is a "consumer credit" bureau somewhere in your vicinity. it's federal. they give you advice for free.......some towns even have them.....and states.......no charge and they help you get your stuff in order......

not sure how these things work but if you go down this route check what will happen to your credit rating i was warned a few years ago its affects your credit rating as bad as bankrupcity

Thanks, Pat and Kathryn...
I am concerned about the credit rating as well, since i've managed to maintain "excellent," and above excellent.
May just eventually sell my house and rent or move in with my mother !!!
Patty

Hi there,

It definately goes against your credit rating. I went to one a few years back. It was advertised on T.V. and I went to the website first. I put in all my information and it told me the monthly payment I would have if I consolidated.

So, I called and had several conversations with a representative. I gave all my information and he came up with monthly dollar amount that was more than the income I told him I made!!! I then told him what it said on-line and he said that was impossible to pay that amount. He also said he had a few calls like this and that the computer was wrong.

In the end I had to claim bankrupcy. My partner at the time was waiting for disability to be approved. Our monthly payments were fine when my partner was working, but once unemployed it was impossible.

Tranquility

p.s.....the reason it's on your credit report is because they make deals with your creditor to buy off at a certain dollar amount which is less than what you owe.

Unfortunately most of the credit counselors are paid by the credit card companies, and make money "off you" also.

You can go to crown.org and they often help ppl with free resource links. ALso, SuzeOrman.com has free advice too!

Have you called your credit card companies and asked them for the lowest rates possible?

good wishes on this! It's a worthwhile endeavor, to be debt free!

Thanks, all of you! This is good information.

Patty