I'm seeking help on managing my card How can I get a high beacon score?. Currently, I owe about 12,000 on 8 cards and paying interest rates between 18-29%. I'm thinking about consolidating this amount to a lower interest rate.

About a week ago, I received a phone call from a company soliciting their business. They qouted me a 6-10% interest rate on each of my card and a payment of 360.00 a month. They also told me that I would be charged 40.00 each month which would already be included in the 360.00 payment amount. I didn't apply at the time because I've heard that alot of these companies are scams and that alot of people who signed up ended up with more problems and paying a lot more than their preconsolidation amount.

I'm not sure what to do at this point as I don't know too much about and which companies are ligitimate. If anybody is familiar with and know of any legitimate companies, please help me out and respond to this post.

"VolcanoMall" <VolcanoM@Yahoo.com- wrote in news

- I'm seeking help on managing my card . Currently, I owe - about 12,000 on 8 cards and paying interest rates between - 18-29%. I'm thinking about consolidating this amount to a lower - interest rate.

- About a week ago, I received a phone call from a company - soliciting their business. They qouted me a 6-10% interest rate on each - of my card and a payment of 360.00 a month. They also told me - that I would be charged 40.00 each month which would already be - included in the 360.00 payment amount. I didn't apply at the time - because I've heard that alot of these companies are scams and that alot - of people who signed up ended up with more problems and paying a lot - more than their preconsolidation amount.

- I'm not sure what to do at this point as I don't know too much about - and which companies are ligitimate. If anybody is - familiar with and know of any legitimate companies, - please help me out and respond to this post. $12,000 isn't all that much, in the scheme of things - less than you'd take on, most likely, if you bought a new car.  But those interest rates are a killer.

You don't give us much to go on, but you're asking for advice, so here's what I'd suggest.

The absolute first thing you have to do to get out of is to not incur any more .  If you simply must use one or another of these cards, you absolutely must pay off all current charges when you get the bill.  It's OK to use a card as a substitute for cash, but at the end of the month, you have to pay for everything you've charged.

Now take the statements and lay them out.  We can assume from what you've posted that you can afford to put $360/month toward getting out of (that $360 is not for paying off what you charged this month, it's in addition to paying off what you charged this month). You can go one of two ways.

1.  Pay the minimums on all the cards except the one with the highest interest rate.  Put the balance of the $360 against the card with the highest rate.  When that card is paid off, cut it up and close the account. You don't need to be borrowing money at 28% anyway.  Continue doing the same with the remaining accounts - pay the minimum on all but the highest rate card, pay off the highest rate card, and get rid of it.

It could be that you owe the most on the highest rate card, and relatively little on one or two of the others.  Proceeding as above might be discouraging because it will take a long time to pay off the highest rate card.  So some people find it easier to use the second method.

2.  Pay the minimums on all cards except the one with the lowest balance. Put the remainder of your $360 against the card with the lowest balance until it's paid off.  Continue with the remaining cards.

Method one will cost you the least amount in the long run unless it just so happens that you have lower balances on the higher rate cards.  Method two might be psychologically easier.

Using method one, you might keep the last one or two accounts - cards are useful, and even essential for some things (try renting a car without a card), if used with just a bit of prudence.

Some people might object that not using a company like the one that solicited you over the phone means you'll end up paying more in interest.  But they're charging you a $40 fee on the $320 payment (for the total of $360).  That's equivalent to 12.5% interest.  Assuming you have roughly equal balances on all your cards, you're paying "blended rate" of around 23%-24%.  If they get your rate down to 10%, you'll be effectively paying 22%.  In addition, as you pay off the higher rate cards, your blended rate will go down until you're on your last card, when you'll be paying 18%. If you use this company, you'll be paying that effective 22% all the way through.

I don't know if the company is legitimate or not, but even if they're completely above board and can and will do everything they claim, in my opinion it's unlikely that they'll save you a dime.

Whatever you do, realize that you're looking at several years to pay this stuff off.  If your interest rate was zero, it would take almost 3 years to pay off $12,000 at $360/month.  Your interest rate is a long way from zero, so if you can afford to put more towards your , do it - the quicker you pay it off, the less it'll cost.

What is the name of the company ?

Lou wrote: - "VolcanoMall" <VolcanoM@Yahoo.com- wrote in news - - - I'm seeking help on managing my card . Currently, I owe - - about 12,000 on 8 cards and paying interest rates between - - 18-29%. I'm thinking about consolidating this amount to a lower - - interest rate.

- - About a week ago, I received a phone call from a company - - soliciting their business. They qouted me a 6-10% interest rate on each - - of my card and a payment of 360.00 a month. They also told me - - that I would be charged 40.00 each month which would already be - - included in the 360.00 payment amount. I didn't apply at the time - - because I've heard that alot of these companies are scams and that alot - - of people who signed up ended up with more problems and paying a lot - - more than their preconsolidation amount.

- - I'm not sure what to do at this point as I don't know too much about - - and which companies are ligitimate. If anybody is - - familiar with and know of any legitimate companies, - - please help me out and respond to this post.

- $12,000 isn't all that much, in the scheme of things - less than you'd - take on, most likely, if you bought a new car.  But those interest rates are - a killer.

- You don't give us much to go on, but you're asking for advice, so here's - what I'd suggest.

- The absolute first thing you have to do to get out of is to not incur - any more .  If you simply must use one or another of these cards, you - absolutely must pay off all current charges when you get the bill.  It's OK - to use a card as a substitute for cash, but at the end of the month, you - have to pay for everything you've charged.

- Now take the statements and lay them out.  We can assume from what you've - posted that you can afford to put $360/month toward getting out of - (that $360 is not for paying off what you charged this month, it's in - addition to paying off what you charged this month). You can go one of two - ways.

- 1.  Pay the minimums on all the cards except the one with the highest - interest rate.  Put the balance of the $360 against the card with the - highest rate.  When that card is paid off, cut it up and close the account. - You don't need to be borrowing money at 28% anyway.  Continue doing the same - with the remaining accounts - pay the minimum on all but the highest rate - card, pay off the highest rate card, and get rid of it.

- It could be that you owe the most on the highest rate card, and relatively - little on one or two of the others.  Proceeding as above might be - discouraging because it will take a long time to pay off the highest rate - card.  So some people find it easier to use the second method.

- 2.  Pay the minimums on all cards except the one with the lowest balance. - Put the remainder of your $360 against the card with the lowest balance - until it's paid off.  Continue with the remaining cards.

- Method one will cost you the least amount in the long run unless it just so - happens that you have lower balances on the higher rate cards.  Method two - might be psychologically easier.

- Using method one, you might keep the last one or two accounts - cards - are useful, and even essential for some things (try renting a car without a - card), if used with just a bit of prudence.

- Some people might object that not using a company like the one - that solicited you over the phone means you'll end up paying more in - interest.  But they're charging you a $40 fee on the $320 payment (for the - total of $360).  That's equivalent to 12.5% interest.  Assuming you have - roughly equal balances on all your cards, you're paying "blended rate" of - around 23%-24%.  If they get your rate down to 10%, you'll be effectively - paying 22%.  In addition, as you pay off the higher rate cards, your blended - rate will go down until you're on your last card, when you'll be paying 18%. - If you use this company, you'll be paying that effective 22% all the way - through.

- I don't know if the company is legitimate or not, but even if they're - completely above board and can and will do everything they claim, in my - opinion it's unlikely that they'll save you a dime.

- Whatever you do, realize that you're looking at several years to pay this - stuff off.  If your interest rate was zero, it would take almost 3 years to - pay off $12,000 at $360/month.  Your interest rate is a long way from zero, - so if you can afford to put more towards your , do it - the quicker you - pay it off, the less it'll cost. Thanks for yoour reply. I would like to consolidate rather than slowly pay this off because I have other loans to pay as well. My student loans are about 50,000 in total. I don't like being charged the interest on any of my cards. If possible, I think my best option is to consolidate. The problem is that I don't quite know the pros and cons of . I read that shifting balances on cards could adversely affect my score. I've also heard that alot of companies are scams. I really want to get a good picture of these companies before I make any decisions.

roger61@yahoo.com wrote: - What is the name of the company ? I forgot. I do have their phone number. I did a search on companies and there seems to be alot of them offering the same thing. I don't know which are legit and which aren't.

"VolcanoMall" <VolcanoM@Yahoo.com- wrote in news

- roger61@yahoo.com wrote: -- What is the name of the company ?

- I forgot. I do have their phone number. I did a search on - companies and there seems to be alot of them offering the same thing. I - don't know which are legit and which aren't. When I had bad revolving problems I went straight to the bank and asked them for a loan.  They offered me one for 5 years at 3% above the bank's prime rate that had to be renewed every year.  At the time the rate I was paying was 7%.  Sure beats 18%.  Plus it's not a revolving rather installment loan.  The bank paid out the cards I told them to but they didn't close the cards down.  That you have to do yourself.  And don't let the bank you get the loan try to get you to keep a couple cards open!!!!   That's a pitfall for obvious reasons.   I didn't consolidate my car loan or student loans with the same loan as I had favorable rates on those loans at the time.  Also don't consolidate too much otherwise you lose your flexibility to make that lump sum payment if you live paycheck to paycheck   which I was doing at the time.   At least with the loans spread out I could plan payments.    It worked!!   was in 3.5 years and not 5.

Again I went directly to a bank and not a company.

Maynooth wrote: - "VolcanoMall" <VolcanoM@Yahoo.com- wrote in news -

- - roger61@yahoo.com wrote: - -- What is the name of the company ?

- - I forgot. I do have their phone number. I did a search on - - companies and there seems to be alot of them offering the same thing. I - - don't know which are legit and which aren't.

- When I had bad revolving problems I went straight to the bank and asked - them for a loan.  They offered me one for 5 years at 3% above - the bank's prime rate that had to be renewed every year.  At the time the - rate I was paying was 7%.  Sure beats 18%.  Plus it's not a revolving - rather installment loan.  The bank paid out the cards I told them to but - they didn't close the cards down.  That you have to do yourself.  And don't - let the bank you get the loan try to get you to keep a couple - cards open!!!!   That's a pitfall for obvious reasons.   I didn't - consolidate my car loan or student loans with the same loan as I had - favorable rates on those loans at the time.  Also don't consolidate too much - otherwise you lose your flexibility to make that lump sum payment if you - live paycheck to paycheck   which I was doing at the time.   At least with - the loans spread out I could plan payments.    It worked!!   was - in 3.5 years and not 5.

- Again I went directly to a bank and not a company. How long ago was this? Do most banks offer this type of loan? I'm sure they do checks though. I went in for a loan about a year ago and it didn't go through so I'd doubt that they'd give it to me with more now then then. The loan that I applied for was an all purpose loan though. I'm not sure if it's the same.

How do companies work? Do they negotiate interest rates with card companies or do they buy the loan? I keep on hearing that that these companies need to send in a check to the card company each month. Are companies the same as companies?

DON'T DO IT!!!  That $40/month is an extra 4% over the interest charged, AT THE BEGINNING!  Later on, that $40/month will be a ridiculously high percentage rate -- my best thumbnail estimate is another 22% overall!!!

In general, is worthwhile IF it is at a TOTAL (inclusive of ALL interest and fees) APR less than what you're paying now.  However, you may be able to do better by getting a balance transfer on ONE OR TWO of your highest interest cards to a "low introductory rate."  You have to be careful that you do NOT use that card for ANYTHING else, though, while you pay down the transfer (and also that that scheme is allowed).

If you are gainfully employed, you should be able to get a legitimate bank or union loan to consolidate your .  Also look into your local Consumer Service.

"VolcanoMall" <VolcanoM@Yahoo.com- wrote -- I'm seeking help on managing my card . Currently, I owe -- about 12,000 on 8 cards and paying interest rates between -- 18-29%. I'm thinking about consolidating this amount to a lower -- interest rate.

-- About a week ago, I received a phone call from a company -- soliciting their business. They qouted me a 6-10% interest rate on each -- of my card and a payment of 360.00 a month. They also told me -- that I would be charged 40.00 each month which would already be -- included in the 360.00 payment amount. I didn't apply at the time -- because I've heard that alot of these companies are scams and that alot -- of people who signed up ended up with more problems and paying a lot -- more than their preconsolidation amount.

-- I'm not sure what to do at this point as I don't know too much about -- and which companies are ligitimate. If anybody is -- familiar with and know of any legitimate companies, -- please help me out and respond to this post. Thanks for yoour reply. I would like to consolidate rather than slowly pay this off because I have other loans to pay as well. My student loans are about 50,000 in total. I don't like being charged the interest on any of my cards. If possible, I think my best option is to consolidate. The problem is that I don't quite know the pros and cons of . I read that shifting balances on cards could adversely affect my score. I've also heard that alot of companies are scams. I really want to get a good picture of these companies before I make any decisions.

"VolcanoMall" <VolcanoM@Yahoo.com- wrote in news

- Maynooth wrote: -- "VolcanoMall" <VolcanoM@Yahoo.com- wrote in news --

-- - roger61@yahoo.com wrote: -- -- What is the name of the company ?

-- - I forgot. I do have their phone number. I did a search on -- - companies and there seems to be alot of them offering the same thing. I -- - don't know which are legit and which aren't.

-- When I had bad revolving problems I went straight to the bank and -- asked -- them for a loan.  They offered me one for 5 years at 3% -- above -- the bank's prime rate that had to be renewed every year.  At the time the -- rate I was paying was 7%.  Sure beats 18%.  Plus it's not a revolving -- -- rather installment loan.  The bank paid out the cards I told them to but -- they didn't close the cards down.  That you have to do yourself.  And -- don't -- let the bank you get the loan try to get you to keep a -- couple -- credit cards open!!!!   That's a pitfall for obvious reasons.   I didn't -- consolidate my car loan or student loans with the same loan as I had -- favorable rates on those loans at the time.  Also don't consolidate too -- much -- otherwise you lose your flexibility to make that lump sum payment if you -- live paycheck to paycheck   which I was doing at the time.   At least -- with -- the loans spread out I could plan payments.    It worked!!   was debt -- free -- in 3.5 years and not 5.

-- Again I went directly to a bank and not a consolidation company.

- How long ago was this? Do most banks offer this type of loan? I'm sure - they do credit checks though. I went in for a loan about a year ago and - it didn't go through so I'd doubt that they'd give it to me with more - debt now then then. The loan that I applied for was an all purpose loan - though. I'm not sure if it's the same.

- How do consolidation companies work? Do they negotiate interest rates - with credit card companies or do they buy the loan? I keep on hearing - that that these companies need to send in a check to the credit card - company each month. Are consolidation companies the same as credit - counseling companies? Well   My credit never took a hit because I always made minimum payments on time.  Event though it strangled me and at times I wondered how I was going to pay for the weeks food, I still made payments on time so technically  my credit never took a hit and the agencies never would have know by looking at my record I was drowning.

Credit counseling will put a big hit on credit rating.  credit consoulling is one step above bankruptcy almost.   I never dealt with consolidation companies so I can't speak for them.  Credit consoulling companies are supposed to be NON-PROFIT but when I phoned a few during my crisis my credit score was going to take a hit and show on my record for 7 years as two stages above bankruptcy.   Instead I took the consolidation loan from my local bank.  unlike credit counseling, I think consolidation loan companies are profit oriented.  Some credit counseling agencies are supported but YMCA or United way  etc   but there is a price to use them and it's at the expense of your credit score.   Avoid them if you can but if you are sinking sinking sinking them maybe they are a better choice than starving or bankruptcy.

This was about 3 or 4 years ago.   I only became debt free in Jan 2006 and already I have saved 11000 dollars in cash since then.   I no longer live paycheck to paycheck   whereas 1 year ago I did.  because I was able to always make minimum payments I went to a bank for help instead because my income was high enough to work with and the bank does NOT want my credit rating to take a hit.  the bank will pressure you to take credit cards or lines of credit after you pay the consolidation loan off.  IGNORE THEM!!!. just keep the credit card you have had the longest for emergencies.  that will do fine on your credit score.    And also I had a car loan and student loans at same time that I kept separate for payment flexibility that way I could spread debt payments over the month instead of one lump sum.  It was revolving debt that I consolidated.

I simply asked my bank if they offered the loan and they said yes.  I'm in Canada and there are 6 national banks and these guys are the second largest bank up here.  They don't advertise this type of loan but it is available iof you ask a personal banker.   Plus it's a name-brand bank and not a fly by night outfit.

That is how I did it.  It may not work for everyone but I have a feeling you are in the same shoes I was 3 or 4 years ago.  there is light at the end of the tunnel.  First step     DEAL WITH THE CREDIT CARDS first, especially the highest interest one!!  All extra money you can find put into the smallest owing or the highest interest card (one or the other).

Make minimum payments on all your debts except that one credit card you picked.  This one credit card you pick: throw all your energy into paying it off first.  Once that is paid for  pick the second card and do the same next year.   It may seem hopeless now  but trust me  it works.   Pay your car loan and student loans last. they will have the lowest interest and will are not revolving  i.e. they do not charge interest on interest like credit cards.

NEVER SPEND MORE THAN WHAT YOU MAKE!

My rule is that rarely if ever should you buy _anything_ from _anybody_ who contacts you.  This will save you from most scams, telemarketing, e-mail or other, as well as a lot of other foolish decisions.  When you want to buy something, you research various vendors.    I'm a big believer in using the low intro rates to avoid/ reduce interest, as John Weiss suggested.  Also, as he mentioned, NEVER use that card, which you've transferred your high rate debt to, for anything else. It goes in your desk drawer, not in your wallet.

You can often get a  card with balance transfer option which for a year will give you 0% or at least low rate.  Use it, mark you calender/ PDA to remind you to switch to another one after 10 months, and start the cycle again.   But as the others emphasize, you have to have discipline in spending as well.   Use these new accounts to pay off your debts, not to accumulate new debts!    Use a different card for purchases- and pay off full balance when you get the bill every month.      You can be your own debt consolidator.  No need to pay someone else a lot to do this for you.

Sev <servde@aol.com- wrote

- My rule is that rarely if ever should you buy - _anything_ from _anybody_ who contacts you. Mindlessly silly.

- This will save you from most scams, telemarketing, e-mail - or other, as well as a lot of other foolish decisions. Some can save you real money.

- When you want to buy something, you research various vendors. You dont always see the best offers listed.