Ask the Dolans: Should I use a debt-reduction service?
Filed under: Debt, Saving Money, The Dolans, Wealth
Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.
Dear Ken and Daria,
I have some credit card debt and have been approached by a debt-reduction company, which says it can reduce my debt 60%-70%. Is this the best way to do it, or should I go to a nonprofit credit counseling firm instead?
Bruce
Ken and Daria Dolan offer advice on all of your debt management questions and concerns at Dolans.com.
Reader Comments (Page 1 of 1)
4-25-2008 @ 5:54PM
sferris1166 said...
I think we need more education in this country about managing our money ... and ways for the average person to make more income. For example, Upromise is a great way to add money to your kids college fund. You can link E-Survey rewards to your Upromise account and easily earn $100 per quarter for your 529 college savings plan.
Steve
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5-20-2008 @ 1:02AM
nmos655897 said...
I had about $30,000 in credit card debt maybe ten years ago. A not-for-profit credit counseling service helped me setup payment plans. Unfortunately, looking back, I do not think they did very much that I could not have done myself. The interest rates were not reduced very much, maybe a little; and none of the debt was eliminated through negotiations - plus I was asked to pay a contribution of about $35 each month to the not-for-profit. Looking back, I doubt I would use their services again.
Be careful which companies you use, and try all your own efforts first before you enlist a third party.
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