First Consumer Debt Consolidation Review

This is not a paid review of First Consumer Debt Consolidation.  This is just some thoughts on their process and results.  I have not personally used their services.  I could not find their established date so I don’t know how long they have been in the debt consolidation business.

The first thing to keep in mind is there is no magic bullet, no matter who the company is.  It takes discipline, time, and patience to reduce your debt.  And it will probably take a lot longer to get rid of it then it did to accumulate it.  That is the best reason to stay out of consumer debt in the first place.

They make the right claims.

Monthly payment reduction of up to 60%
One affordable monthly payment
Reduction and elimination of high interest rates
Erasing late fees and finance charges
Imrpoving credit reports by re-aging past due accounts.

And it those pie in the sky promises that draws people in.  In Article on MSN
gives three things to watch out for.

  1. The Hard-Money Loan – This is where the debt consolidation company gives you a loan to pay off all of your debts and then you pay them.  It gives the illusion of lowering your payment, but often times your interest rate is far above what it was and it will take even longer to pay it off.
  2. Debt Consolidators Who Promise to Take Care of Everything

    To desperate ears, this might sound like an ideal solution, especially when you talk to these people and they scare the bejeezus out of you. I interviewed two, Cambridge Credit and Counseling Services and Integrated Credit Solutions. Each offered similar services, and I don’t recommend either of them. The senior credit counselor I spoke to at Integrated told me, in grave tones, that it would take me 379 months — or 32 years — to pay off my debt. With their services, however, they would “save me 27 years,” and I could pay off my debt in just 53 months, or about 4 1/2 years.That’s funny, because when I plugged my debt into the MSN Money Debt Consolidator — a less biased source, since they ain’t getting no fee from me — they said I could pay off my debt in 41 months, providing I make slightly higher minimum payments to each card: a total of just $60 extra per card.

  3. The Balance Transfer Trap – These are like those “free” money checks you get from your credit card company that just wants to help you out.  Yeah Right!!!.  Generally, these are designed to trap you into even higher rates.  They give you a teaser rate with a short duration and than a ton of rules to follow to maintain it.

You are usually better off on your own.  For psychological reasons most people suggest paying a little bit extra on the lowest balance card. Once that is done, take what your were paying on that card and add it to the payment you are making on the next highest balance.  Depending on the size of your debt balance, it may take your 4 1/2 years to 6 years, but you can do it.

As far as First Consumer Debt Consolidation, they do have some reported happy customers.  You are welcome to check them out, just remember the tips above and don’t get swept away by fantasy promises.  Here is link to their site.

For any program to work, establishing a good credit record is key.

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One Response to “First Consumer Debt Consolidation Review”

  1. weight lost contest work Says:

    Are you a professional journalist? You write very well.

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