Consumer Protection Law

Consumer protection law questions? Ask a lawyer now.

Ask a Lawyer,
Get an Answer ASAP!

This answer was rated:

My question has to do with credit. My credit scores are low…

My question has to do...
My question has to do with credit. My credit scores are low due to a major income drop/lost. As a result I am considering using a consolidation company to assist me. Can you tell me how effective they are? For some of my credit cards it appears I will never pay them off. However if the loan is charged off the amount and interest freezes. Is that correct? Any recommendation appreciated.
Show More
Show Less
Ask Your Own Consumer Protection Law Question
Answered in 7 hours by:
1/14/2018
KLAW
KLAW, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 2,501
Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.
Verified
Good morning. Debt consolidation management plans are plans are offered through credit counseling agencies and, much to many people’s surprise, they don’t actually really consolidate your debt.Instead, you make a “consolidated” payment to the counseling agency, which then pays each of your creditors—usually at a reduced interest rate.Even though you’re making only one or two monthly payments, the counseling agency doesn’t actually pay off your creditors for you—it simply acts as a middle man to help you repay your debts and ensure that the creditors get the money they’re owed.These programs are available regardless of credit scores, it is effective if you don’t use credit.There is also what is called consolidation.
This is getting a new loan to pay off other debts is the most popular way to consolidate. It’s certainly what most people think of when they consider consolidation. But finding a loan that has decent terms and is designed specifically for the purpose of consolidation can be challenging—especially if your credit scores are a bit lower due to the balances you’re carrying.Keep in mind that Consolidating credit cards with high balances using an installment loan (i.e. a loan with fixed monthly payments) may actually benefit your credit rating, especially if you use the loan to pay off credit cards that are near their limits. At the same time, any new loan can cause a short-term dip in your credit scores—so don’t be too surprised if you see your credit score change slightly when taking out a new loan, for a short period.Those are the options available. Debt consolidation management companies however usually cause your credit score to drop and if the loan is written off, then your score drops. The benefits are that the loan amount does not increase due to interest, and fees and you can pay off the loan quicker.
I hope this clarifies. Please don’t forget to rate the question. We as attorneys are not employees of Just Answer and are not paid unless you rate the question with stars
KLAW
KLAW, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 2,501
Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.
Verified
KLAW and 87 other Consumer Protection Law Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a consumer protection lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask KLAW Your Own Question
KLAW
KLAW
KLAW, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 2,501
2,501 Satisfied Customers
Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.

KLAW is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Lawyer

7,125 satisfied customers

Licensed attorney helping individuals and businesses.

Ely

Ely

Counselor at Law

3,436 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

Barrister

Barrister

Lawyer

1,679 satisfied customers

Attorney,17 years experience in consumer protection areas

P. Simmons

P. Simmons

Lawyer

1,227 satisfied customers

16+ yrs. of legal experience.

LADY LAWYER

LADY LAWYER

Lawyer

748 satisfied customers

Consumer Lawyer

RGMacEsq

RGMacEsq

Lawyer

604 satisfied customers

Licensed Texas General Practice Attorney

RobertJDFL

RobertJDFL

Lawyer

517 satisfied customers

Experienced in multiple areas of the law.

< Previous | Next >

Related Consumer Protection Law Questions
I had a store credit card get reported as delinquent.
Hi- I had a store credit card get reported as delinquent. Partially my fault as I charged $29 on the card for a gift over the holidays and forgot. I never normally use this store card.I never received… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
CREDIT REPORTING BUREAUS REQUEST 1. What are my options for
CREDIT REPORTING BUREAUSREQUEST 1. What are my options for rectifying a recent change in my credit reports as a result of paying off a mortgage loan. 2. How do I expedite retrieving the +50 points los… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
How do I improve my credit score on my credit report. I
how do I improve my credit score on my credit report. I recently got denied a loan. What things are considered negative on my credit report that I can look for and go fix it. Further more just in case… read more
Ely
Ely
Counselor at Law
Juris Doctor
3,436 satisfied customers
I don't want to file bankruptcy but I am over my head in
I don't want to file bankruptcy but I am over my head in payments. I need to consolidate debt or find a debt reduction settlement plan. I can afford a payment that is reasonable, but my debt to income… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
My wife has a 550 credit score, she applied Capital
My wife has a 550 credit score, she applied for a Capital One secured credit card yesterday and was denied. Do you have any suggestions for either secured credit cards or the best means to reestablish… read more
LegalGems
LegalGems
Juris Doctorate
12,822 satisfied customers
I have question on late payments on credit cards and long-term
I have question on late payments on credit cards and long-term impact to credit. I am currently in between jobs after my company failed. I am actively seeking permanent employment. Due to the investme… read more
Infolawyer
Infolawyer
Lawyer
Doctoral Degree
7,125 satisfied customers
My mortgage company reported false/ incorrect information to
My mortgage company reported false/ incorrect information to all 4 credit reporting agencies. I have 2 houses. Mortgage on both houses with same company. Both have been set up on auto pay for a long t… read more
Attorney 1
Attorney 1
2,704 satisfied customers
I am looking for the general affect that a judgment (& wage
I am looking for the general affect that a judgment (& wage garnishment?) has on a credit score - NOT a credit card but a civil judgment in a commercial lease case of $40K - we have credit scores of a… read more
LegalGems
LegalGems
Juris Doctorate
12,822 satisfied customers
I have approx. 14,000 in credit card debt. I have over $100,000
I have approx. 14,000 in credit card debt. I have over $100,000 in equity in my townhouse. My husband and I are separating. I need to consolidate my bills and try to get a lower payment on my home by … read more
LegalKnowledge
LegalKnowledge
Juris Doctor
31,020 satisfied customers
I have received many offers to pay off credit card/ unsecured
I have received many offers to pay off credit card/ unsecured debt ................. " cut your credit card debt in half " . Are any or all of these scams , money pits or even atempts to steal my iden… read more
cfortunato
cfortunato
J.D.
7,967 satisfied customers
I have about 12,000.00 in credit card debt. I also owe about
I have about 12,000.00 in credit card debt. I also owe about 6000.00 on vehicles, and I am paying 600.00 monthly for my daughter's college education. I want to get a debt consolidation loan and I am w… read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
Hello At the end of 2009 I got behind on some of my credit
Hello: At the end of 2009 I got behind on some of my credit cards (hard ship, lost job), the worst case was HSBC and I was 90 days late, I got caught up, have made all payments on time, but I am findi… read more
Ely
Ely
Counselor at Law
Juris Doctor
3,436 satisfied customers
I am trying to buy a car and cant because my credit report
I am trying to buy a car and can't because my credit report says I owe 18,778 on a credit card and never paid on it. They sent it to collections in 2005 and they wanted me to pay $4500 all at one time… read more
MDLaw
MDLaw
Attorney
Post-Doctoral Degree
358 satisfied customers
Due to a family emergency , I have to take an extended leave
Due to a family emergency , I have to take an extended leave of absence to take care of my parents in HK. The credit card automatic monthly payment (underestimated) has since turned into a major defau… read more
cfortunato
cfortunato
J.D.
7,967 satisfied customers
I have a second home accquired before I was married as well
I have a second home accquired before I was married as well as a credit card, both of which I cannot pay. I have lost my job, both my husband and I have undergone life-threatening illnesses and are st… read more
cfortunato
cfortunato
J.D.
7,967 satisfied customers
Im not sure this is an appropriate question for your expertise
I'm not sure this is an appropriate question for your expertise but if it is not and you can direct me to where to find answers great! I have secured a loan to pay off my credit cards which are sinkin… read more
J.Hazelbaker
J.Hazelbaker
Doctoral Degree
4,367 satisfied customers
When should you consider debt settlement I have $53,000 in
When should you consider debt settlement? I have $53,000 in credit card debt and 2 car loans. The rep told me I would be able to pay off my debt in 24 months. I've also contacted Consumer Credit Couns… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Wells Fargo local branch office was doing cold calls saying
Wells Fargo local branch office was doing cold calls saying they received money from the government but did not need it and were offering debt consolidation and we spoke for awhile and I said I might … read more
Curtis Staropoli, Esq
Curtis Staropoli, Esq
Principal and Managing Attorney
Juris Doctor
744 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x