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Originally Posted by chefsheila
I agree that a debt consolidation firm is not the way to go. They sound good until you take a look to how they effect your credit. Then they don't seem as great.
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It isn't only how they affect credit scores but the fact that they also use up money that could be put to better prurposes. First of all, if someone pays a debt collector the payments do absolutely nothing for the credit score. People think that paying debt collectors will surely help their credit but it does nothing of the sort. All it does is admit that the debt is indeed theirs and that the amount is correct meaning that they don't have a chance of disputing it off their credit reports.
Secondly, if they end up getting sued the debt consolidation company can do nothing to help them. Most attorneys can't or won't help them either. The only hope they have is learning how to defend themselves in court if they get sued.
The only road to eventual success in getting rid of debt is stop paying if the debt is turned over to a debt collector, learn your rights under FDCPA, FCRA and other laws and get ready to take the debt collector to federal court. Learn to sue your debt collectors in federal court and you will not only consolidate all your debts into nothing at all but end up getting paid quite well for yor time and trouble.
To make things even better there is almost no chance that you will ever see the inside of a fedeal courtroom.