debt consolidation - whos done it

[hvactech]

Anyone went through a consolidation company for debt and successfully improved their credit

 

[Wrivest]

Be careful with a consolidation company to "improve" credit. Companies that specialize in that MAY help make monthly debt lower, but your credit report may suffer. Also, any late payment fees are through the roof. IMO, I would go through your bank to consolidate. That will keep your payments low, and keep your credit report clean.

 

[methusaleh]

After a lengthy discussion on a veterans' forum I belong to, I called American Consumer Credit Counseling. That was the highest-rated one among all of those in the discussion. I consolidated five high-interest credit cards that I had trouble making minimum payments on. I was never late and always made payment, but the terms sucked and I owed a total of about $28K. The interest rates were knocked down to roughly 5% from around 20%. Only one lender (BOA) placed a remark on my credit report...something like "this account has always been paid on time, but is being managed by a credit counseling service." I paid off those debts in four years and had zero issues. I was able to get an emergency credit card, a car loan, and even a mortgage during that time, and my score did not seem affected by my consolidation.

I realize that many of this sort of companies are in bed with banks to some extent, and I was very very skeptical, but my experience was positive.

I have no connection to ACCC except being a satisfied former customer