Hi,
I just wanted to warn everyone about debt consolidation companies. I had 3 credit cards I turned over to a solve debt company and was paying them 271 a month- they were to take my debt and add it to others with the same credit card and pay it down- well its been a night mare, I have gone to court 3 times on my Target account, and now the Target account is garnishing my wages by 600 a month for 180 days. I just Thank God that I have another part time job, or I would really be in a bigger financial mess then I am now. This company did nothing to help me. In fact I should of gotten a clue when the Target lawyers kept sending the check back to the debt consolidation company that was paying them 75 a month. This has been a night mare for me. So just be ware- just keep making your payments- if it can happen to me, it can happen to anyone-the third time I went to court the Target lawyer was a real ass-even threatened to sue my husband, but now they are getting $600 a month so I am cutting corners as much as I can- if anyone has any ideas how I can cut even further please let me know, next week is spring break here, so I won't have to take my son to school, and I can leave the car at home and walk to and from work. I was really depressed when it first happened- but I try to have days when I don't spend any money- and have cut down on trips to the grocery store, I am not buying anything like clothes etc, for now I am just buying necessities and paying bills.
At the first of the year they also put a bank levy on my checking account and took 215.00 out of it, I thank God that I hadn't deposited my paycheck in that account that morning or I wouldn't of had anything to pay my mortgage with.
So anyway be aware they are not what they are cracked up to be- my eyes have been opened the hard way.
thanks for listening

YIKES!! Sorry to hear about all this. I personally DON'T Like Debt Consolidation Companies. For some great TIPS and how to get out of Debt yourself check out www.daveramsey.com (http://www.daveramsey.com)

hi,
Thank you, wish I would of done more research before turning them over- I really screwed myself big time.

I'm sorry you ran into trouble with debt consolidation. I have never consolidated my debt, so I don't know what it's like, but I imagine I wouldn't like to pay someone to pay my debts for me (too much 3rd party trust involved). I wish you luck as you work your way out of this. There's great tips here on this site for saving money.

I am sorry this happened to you but is there a way you can sue the company? I dont if that's an option but have to spoken to anyone there about there lack of communication and the issues with target?

Thank you for the heads up about the DC companies, while I have never used them, now I know I wont ever.

I'm so sorry this has happened to you. I know there are several states that have sued companies like the one you signed up with. I hope you're able to get everything resolved soon. Let us know what happens.


--Michelle

Thank you for taking the time to warn others. Wishing good things for you.:)

Just take it one at a time. Be strong because all these companies rip people off. You will see the end of the tunnel soon. I was there at one time and I just care of myself....Did freebies like take the dog for a walk, went to the library and check out movies, look at some fun sites on the web etc......

Sorry you are experiencing such a nightmare!!! My hubby & I consolidated our debts a long time ago and what you are describing does not sound like a debt consolidation...it sounds like the company you went to is actually one of those that tries to make arrangements for the cc companies to stop the interest and take less money than they are owed.

A true debt consolidation is when you borrow enough money to pay off your current debt holders and have everything rolled into one payment, which you generally pay yourself.

If I were you I would get out whatever contract you signed with the debt consolidation company and seek legal counsel. Many attornies offer a free first consultation...if you were scammed, maybe you have a lawsuit. I generally don't advocate sueing...but, sometimes you have to do what you have to do...

Sorry you are experiencing such a nightmare!!! My hubby & I consolidated our debts a long time ago and what you are describing does not sound like a debt consolidation...it sounds like the company you went to is actually one of those that tries to make arrangements for the cc companies to stop the interest and take less money than they are owed.

A true debt consolidation is when you borrow enough money to pay off your current debt holders and have everything rolled into one payment, which you generally pay yourself.

If I were you I would get out whatever contract you signed with the debt consolidation company and seek legal counsel. Many attornies offer a free first consultation...if you were scammed, maybe you have a lawsuit. I generally don't advocate sueing...but, sometimes you have to do what you have to do...
I agree!
they call my and I tell them I not interested and also it`s to lowqer your interest rate. I tell them I`ll call the company my self.
I think they`re all a racket. I`m so sorry this has happened to you.
:grouphug:
cissylu

It sounds like you reallt got ripped off......sorry to hear that.

My DH and I just finished our debt management program Dec 31st.....we did shop around,and there are a TON of companies out there that claim they can help you.

In the end,we went with a registered Non-profit debt management company.They did work with our debts,not to eliminate,but to lower the rates and work out a repayment program.

We stuck with it,and are now debt free.

PLEASE people,do some homework on the company you are considering before you sign anything with them,there are a LOT of people ending up in this same situation because of it.

If at all possible,go with a non profit group that has an office locally that you can go to and meet the people in person who you are going to trust with your money.

We tried a debt consolidation company a few years ago also. Did our homework, had a recommendation from friends, checked with the BBB and were impressed with the conversation and consultation we had with our debt counselor. The nightmare started after that. The money was taken directly out of our account and was not always paid on time to the cc companies. Everytime we called, we got someone who didn't have a very good understanding of the English language. Never was able to speak to our "debt counselor" Before we dumped them, we were paying more for cc payments with them than we were before. Nothing changed on the cc balances either. What a scam!!! You are much better dealing with your cc yourself.

Isn't it possible to to do the same thing yourself as to what these companies do?

Sorry you are going through this nightmare. I know the sooner you get these people off your back the better your life will be.

I have never used one of these types of companies however thanks for the warning as I will never do business with one of them either.

I was always iffy about Debt consolidation companies, I'm glad I never dealt with one. But the way I went wasn't my best decision either. When I was 20 I went to Citi Financial for help. I had 13 credit cards and I couldn't make the minimum payments anymore. I needed help big time. My 13 cards were all small amounts, they only totaled about $6,000 so they approved me for a loan to pay off all my cards. That wasn't to bad. When I reconsolidated my loan with them because I needed a car and I had more CC debt they helped me again to pay everything off that loan was for about $4,500. If I stay with them the 5 years I will owe them $20,000 now. But if I pay them off right away I will only pay about $10,000. My Goal after I pay off my credit cards I have right now is going to be saving as much as I can to pay them off and not have to worry about them ever again. Now that I am older and I am learning how to shop smart I am saving my self so much money. I can't wait till I have everything in order.

I hope everything works out for you, and thank you for proving my gut feeling on why not to trust those places.

Isn't it possible to to do the same thing yourself as to what these companies do?



YES it is.

I would call the office of the state attorny general and if they have enough complaints they will sue the company and close them down

I would also persue it privately of course to get you money back

This is what just happened to me. I was using a debt settlement company, and in the mean time, I got my wages garnished. I didn't get any summons to go to court though. I got paperwork, but it was with dates earlier than when I received the paperwork. No actual court date on the paperwork. I had $187 taken out of my check this week, and i guess to pay this bill completely this will take 13 weeks of this garnishment I posted in anther thread, Idon't know if filing for BK would be better or just let this take it's course, and call the other collection agencies to settle myself. I know what you'regoing through. It's hard. Luckily, I do transcription work on the side, and that'll give me a little extra money.

I'm sorry you got ripped off by them. It doesn't sound like debt consolidation to me either. But one of those fly by night "debt repayment" businesses.

We have had excellent luck with not-for-profit Consumer Credit Counseling Services offered by our state. We will be debt free in another year or so.