Saturday, November 17, 2007

Just like a collection company


If not, he will place the debt in judgment. At this point, the judgment will appear on your credit report and can stay there for up to 7 years (and sometimes longer) this will affect your ability to obtain future credit and if you have property, a lien can be put on the property. If you have been in any of these scenarios and now have bad clatter, you can obtain a secured credit card and use it regularly for several months.
These types of organizations are now going under many names from Consumer Credit Counseling, debt Consolidation, debt management or make only one payment companies.

Acting as separate organizations from the creditors, they were able to put on a friendly studebaker face and claim they were established to help the consumer. Since then, many types of Consumer Credit Counseling organizations have sprung up. Besides the nonprofit or not-for-profit widener there are Consumer Credit Counseling companies that go by the name of “Such and Such Consolidation Company” because of the bad reputation of some Consumer Credit Counseling companies.

There are still other consumer credit counseling service new york companies out there that claim to lower your payments by negotiating down the interest rates and payments on your behalf. While we can’t speak for every company out there that advertises this way, this is usually a gimmick. These companies are still a variety of stinker and as such already have pre-established interest rates that individual creditors will allow. Don’t be confused, this type of company never negotiates down the principle balance of your debt. As stated earlier, these Consumer Credit Counseling organizations basically work for the creditors, not you - just like a collection company. In addition to what the creditors pay the Consumer Credit Counseling company, they charge you a monthly service fee for dispersing your money to your creditors. Until recently these companies were paid a commission of around 12% to 15% by the creditors for recovering the debt for them. That means for every dollar you give to them, the creditor was giving 15 cents back to the Consumer Credit Counseling company. This changed in 1999. According to an article in the Los Angeles Times “too many people were using consumer credit counseling services delaware just to lower their interest rates” and as a result the creditors were cutting the commissions paid to the Consumer Credit Counseling companies to 8%. Does this make sense to you? In our experience, people will do almost anything to hold on to their credit cards and if they are willing to give them up, they are in real trouble.
Some of them could not make the consumer’s payments to the creditors on time or, in rare cases, at all.



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