# need advice on debt consolidation



## jorgegene (May 26, 2012)

Hello all. I am about to get married in June.
Back in 2008-2010 when the current recession was at it's worst,
I lost my job and was marginally unemployed for about 2.1/2 years. Since the end of 2010, I've been self employed and just about making ends meet. The recession has affected my profession really, really hard (commercial construction).
Most of my debt was accumulated in those 2.1/12 years, times continue to be really tough, but I'm making about 50K a year but the taxes are brutal and I live in a high cost of living area.
Plus paying almost $800/month to keep up with the debt.
I told my fiancé up front when we started getting serious, about my debt and she doesn't care, she wants to get married anyway. So, I have been talking to a debt settlement company in New Jersey. Here is my question to all and I appreciate any advise. Several people are warning me that a lot of these debt consolidation are scams and to be very wary.

In this particular case, the debt consolidation company is offering me a contract, $399.00 in legal fees up front, $150.00 up front and $650.00 payment for 30 months. They'll reduce my debt to about $60% of what it is.

People have told me to thoroughly check these people out.
I've checked both the agent and the attorney on line and nothing ominous comes up. I checked the Attorney on the New Jersey Bar and he is in good standing. However, I checked for them on better business bureau nationally and locally and nothing comes up. My search for the company turns up very little results. My tax guy says I should pay $30.00 and do a criminal search on these guys.

Does anyone have expertise on these things and advise on what I should do so I don't unwittingly get myself into more trouble? These people have been pretty patient, I told them I'm getting married and I need to get things in order with my fiancé before filling and they have not been harassing me, just calling me every couple weeks telling me they're ready when I am.

Thanks in advance


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## Almostrecovered (Jul 14, 2011)

I would think shopping around would be a good idea as well

also consider calling your credit card companies first to make your own deals (many won't do deals if you are keeping up with payments but if you are defaulting then they will work with you to reduce interest and such to pay it off)


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## Lazarus (Jan 17, 2011)

I wouldn't get involved with this sort of deal. Flexibility is key as this recession is likely to get worse. 

If you got involved in the deal, what would happen if you lost your current job and unable to continue the agreed payment?

I would look for credit card agencies that allow a window of x months free interest if possible or go to a very good financial adviser to look at all the options specific to your situation. 

The deal is buyer beware..


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## Homemaker_Numero_Uno (Jan 18, 2011)

When dealing with debt collection, go to the source for recommendations:

Ask Doctor Debt: Answers To Your Debt Questions
This is the Association of Credit and Collection Professionals consumer resources page (it just has the catchy name.)

There you will find links, under the consumer resources tab, and the National Foundation for Credit Counseling. I think this would be better, there is no sense in getting a good deal on your own if it comes with risk exposure, or even perceived risk exposure, that will lead to stress. Especially at the beginning of a marriage. You might also want your fiance to be aware that if the two of you want to sign a lease, buy a car (used or new) or even a house...her credit rating if she has a better one than yours, will decrease on account of your debt. With some education about impact, she might be interested in a long engagement, if she can see that it will be to your benefit. It's cool that she'd not judging you, and has faith in you, but that's different from deliberately making a choice to lower your joint options on moving forward with your lives financially, when there is a choice otherwise.

National Foundation for Credit Counseling:
National Foundation for Credit Counseling


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## tennisplayer (Apr 13, 2013)

A geat site for everyone who has questions such as yours and every financial matter is www.creditboards.com. It has helped me a ton.


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