Comments on: Which company is better or which is the best for credit card debt? http://www.debt--relief--blog.com/personal-finance/which-company-is-better-or-which-is-the-best-for-credit-card-debt Blog topics covering all forms of debt relief Thu, 09 Sep 2010 16:45:57 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Debt Is Dumb http://www.debt--relief--blog.com/personal-finance/which-company-is-better-or-which-is-the-best-for-credit-card-debt/comment-page-1#comment-467 Debt Is Dumb Mon, 19 Jan 2009 02:43:54 +0000 http://debt--relief--blog.com/personal-finance/which-company-is-better-or-which-is-the-best-for-credit-card-debt/#comment-467 I would be very hesitant to use any company that is going to "negotiate" on your behalf or that says that they can only negotiate unsecured debt. Many of these companies tell you to stop payments on your unsecured debt. The reason is that they want you to be delinquent so that the credit card company/bank will negotiate. The logic is that the bank would rather get something than nothing. What they do not tell you is that the bank is under no obligation to negotiate with that company. In fact, they are charging you a fee (or a "donation") to do something that you could do yourself. Basically, this is a debt con-solidation tactic with the emphasis on the "con". You get fooled into thinking that your problem is solved. The truth is that debt is not the problem, it is a symptom. The problem is the behavior that got you into debt and that problem must be addressed. From personal experience, you have to make the guy in the mirror behave himself and clean up his mess. That will not be the easy way out, but morally and ethically, it is the right way. Dave Ramsey is a financial advisor who has put together a common sense plan to manage money. I know, common sense is an uncommon virtue. He says "I don't want to be normal. Normal in North America is living paycheck to paycheck with a huge home mortgage, two car payments, and bill collectors. Normal is broke. I want to be weird." And no, I do not work for Dave. I just used his program and cleaned up my mess. Good luck I would be very hesitant to use any company that is going to “negotiate” on your behalf or that says that they can only negotiate unsecured debt. Many of these companies tell you to stop payments on your unsecured debt. The reason is that they want you to be delinquent so that the credit card company/bank will negotiate. The logic is that the bank would rather get something than nothing. What they do not tell you is that the bank is under no obligation to negotiate with that company. In fact, they are charging you a fee (or a “donation”) to do something that you could do yourself.

Basically, this is a debt con-solidation tactic with the emphasis on the “con”. You get fooled into thinking that your problem is solved. The truth is that debt is not the problem, it is a symptom. The problem is the behavior that got you into debt and that problem must be addressed. From personal experience, you have to make the guy in the mirror behave himself and clean up his mess. That will not be the easy way out, but morally and ethically, it is the right way.

Dave Ramsey is a financial advisor who has put together a common sense plan to manage money. I know, common sense is an uncommon virtue. He says “I don’t want to be normal. Normal in North America is living paycheck to paycheck with a huge home mortgage, two car payments, and bill collectors. Normal is broke. I want to be weird.” And no, I do not work for Dave. I just used his program and cleaned up my mess.

Good luck

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