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NY/MA Attorney
NY/MA Attorney, Attorney
Category: Bankruptcy Law
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Experience:  20 years experience practicing Bankruptcy law
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Hi I owe 86,000.00 in credit card debt my min. payment we pay

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Hi I owe 86,000.00 in credit card debt my min. payment we pay each month is 2700.00. I have been looking at a debt consolidation company not a loan but a company that says they can reduce my credit card debt in half do you suggest that I go through a company like this
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  NY/MA Attorney replied 7 years ago.
In my opinion those credit card debt consolidation companies are useless. Worse yet, many of them are outright scams, they take your money and do nothing for you, or make your credit worse. You can do what they can do by simply calling all of your creditors, telling them that you are in trouble, and asking what they will be able to do for you. Usually they will offer you the some concession. If you have available cash you can often settle the debts outright for about 30-50% of the balance. You should also consider whether Bankruptcy may be the better alternative for you. When you look at your financial condition you should consider where you will be in five years. Should you get a discharge now, and then save the money that you would have paid to the credit card companies (which without interest is more than $160,000.00!!) you would probably be far ahead of where you will be if you attempt to pay off your massive credit card debt. Should you elect to do nothing, and just make the minimum payment you will probably still owe $86,000.00 in five years. If you really want to change your life, talk to a Bankruptcy Attorney, not the debt consolidation companies.
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