What is the best agency to choose for debt cancellation or consolidation?

Trying to decide if I should file bankruptcy or pay off debt

What is the best agency to choose for debt cancellation or consolidation?
If you MUST consolidate through an agency, you'll want to go with Consumer Credit Counseling Services as they are the only halfway reputable group of their type. This industry has a terrible reputation for misrepresentation and misappropriation.





You should also know that going through a CCCS type service will result in your payments being reported to the three major bureaus as "paid through agency" which for the purposes of qualifying for a mortgage is the same thing as a chapter 13 bankruptcy. Your best bet is to avoid this at all costs. The only difference between a chapter 13 and CCCS is that the latter will fall off your credit report in 7 rather than ten years. Then again, you are trading reliability for that luxury. There is a higher than comfortable chance that your payments through an agency will be misapplied and put you in a worse situation than you are currently in.





Try to negotiate with your creditors directly to get payments down or full settlements. Get any offers in WRITING before accepting them. Understand that you will probably not be successful in your first try, but if you keep on them, most will settle with you if they think you are in enough trouble. The trick is to get on the phone with someone at the credit company who has a brain (you will likely have to go VERY high in the collections department to find the one person who has one). Check out some of my other answers on this subject and shoot me an e-mail if you have any other questions.





good luck.
Reply:You can visit http://www.cashguru.info and find very useful tips and several articles on debt consolidation. Report Abuse

Reply:Try to get a loan from your bank first. That is what we did before and it has worked for us. Plus bankruptcy stays with you for 10 years!!!! Think about it long and hard and try every possible thing before bankruptcy.
Reply:My husband and I had car payments and credit cards that we just recently consolidated. The process was very smooth. They send you checks made payable to the creditors with the exact amount that you owe and you send it with your payment stub. They also wire transfer the remaining funds to you directly so you may do as you wish with it. We don't have the best credit but were approved because we had equity in our home. It makes everything so much easier and we have a lot more freedom now with out finances.





Hope this helps a little! Good luck!