How do debt consolidation companies work?

TheLearner2008

Does anyone know how debt consolidation companies work and would it be beneficial for me to use one like http://www.mydebtsolution.uk.com/ to get rid of my debt?

DVardysShadow

Debt consolidation is just shuffling all your debt together in one place.

Debt Consolidation does not get rid of debt.

Getting rid of your debt comes about through one of these

• Paying it off
• Cutting a deal with the creditor
• Debt becoming Statute Barred

Most people here will advise against consolidation. In particular if you consolidate on credit card debt, although the interest might be lower, the repayment schedule will be far more sever and many people report that they have to start borrowing on the cards again.

I_luv_cats

TheLearner2008 wrote: »

Does anyone know how debt consolidation companies work and would it be beneficial for me to use one like http://www.mydebtsolution.uk.com/ to get rid of my debt?

Do you mean Debt Management ?

Ideally for Debt Management you should be looking @ CCCS or Payplan who forward 100% of your monthly reductions to your creditors.
If you choose one of the fee-paying ones then you are going to take longer to clear your debts.

Debt charity v DebtWizard v Fee charger

http://www.debtwizard.com/debt-help/debt-solutions/65-debt-management-companies

http://www.cccs.co.uk/?WT.srch=1&WT.mc_id=200001&gclid=CNSJrqKX0LECFQUOfAodtlQAfg

http://www.payplan.com/?gclid=CL6ev7KX0LECFQRTfAodDCAAbQ