Is debt consolidation bad?
My opinion: They’re horrible. Full disclosure is that I am a New York Real Estate and Bankruptcy attorney. Heres my beef with debt consolidation: Depending on how much debt you are in, you may never be able to pay it all back using debt consolidation methods. In other words, if you’re over 40k in debt and make about 50k a year, there is NO WAY, you are paying the debt back within a reasonable period of time. I dont care what they say about minimizing interest and balances, it just wont happen. And should you miss a payment in the next few years to your debt consolidation company…good luck. In all seriousness I find 95% of them to be true scams. Many of them are actually run by people within the credit card industry, and despite government attempts at crackdowns, there are simply too many companies out there to have any kind of normal oversight. My suggestion to you is this, without knowing your particulars, try and do it yourself. The credit card companies can’t do much here in NY if
