what is the best way to get out of credit card debt? getting a personal loan or a credit reduction company?

Question

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?

Answer 1

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.

Answer 2

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: http://www.nfcc.org - 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":
http://www.ripoffreport.com/credit-debt-…

Answer 3

Maybe bankruptcy.