Suze explains why Debt Consolidation is a scam, and provides detailed steps to consolidate credit card debt on your own – without paying a 3rd party. She also details how to cover your bases and make sure your credit score benefits from the consolidation.
The striking part to me is how much sense it makes from a purely common sense approach! For example, the credit card company will settle with you if your situation is bad enough because some money is better than no money, and the credit card company knows they can’t get the full amount from you.
NOTE: This is largely true of for profit debt consolidation companies. Not-for profits are a different creature and may be beneficial to you. Check out the FTC website on Choosing a Credit Counseling Organization.
[...] between was some discussion of whether debt settlement is a good idea, and why debt consolidation is (sometimes) a scam. When it’s not a scam, debt settlement and loan consolidation just doesn’t work, and [...]