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There are so many websites for those credit reduction companies but I am weary based on the charges that may incur. Are there any companies that can legitimately help you get out of more than 15k in debt?

4 Thoughts on what is the best way to get out of credit card debt? getting a personal loan or a credit reduction company?
  1. Reply
    Top Source
    July 11, 2011 at 7:36 pm

    Maybe bankruptcy.

  2. Reply
    July 11, 2011 at 8:28 pm

    Do not use a “credit reduction” company. It will show on your credit report that your debt is managed by a debt company and it will hurt your score. Definitely consolidate the cards. If you are unable to do this take all of your credit cards and tackle one card at a time. Focus on the smallest balance first. Make the minimum payment on all of your other cards, and pay as much as you can towards the smallest balance. Once that is paid off move on to the next lowest balance. But you need to make sure to stop using your credit cards for this to work!

  3. Reply
    July 11, 2011 at 8:39 pm

    If you’re overwhelmed with credit card debt and you’ve exhausted all self help options like slashing expenses to the bone, selling valuables and getting extra work, then there are really only 2 options: Entering a debt management plan through a non profit credit counseling firm like NFCC or filing for Chapter 7. NFCC can negotiate reduced payments and interest but NOT settlements. Referral at: – If this does not work out, the other option is Chapter 7 bankruptcy.

    Stay away from any debt consolidation firm/credit reduction company that promises to cut your debt and payments in half. These firms work by having you deliberately default on your credit cards to settle for half. This is a risky process and your creditors might respond by taking you to court to get a judgment.

    Here’s an example of what can happen when you use a “credit reduction company”:

  4. Reply
    stan c
    July 11, 2011 at 9:06 pm

    If you have poor credit and you’re past due, there is no way you could get a consolidation loan at a low rate. You could contact a bankruptcy attorney and see what your options are. usually the first visit is free. Their usual fee is somewhere between $ 1,500 to 2,000 to file. A bankruptcy stays on all 3 reports for 10 years. If you could get help from your parents, that’s another options.

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