Quote:
Originally Posted by Zigy
BTW, these are not "loans". You don't get a check. You never get any money. You sign an agreement with the agency that they will pay your debts off (immediately), close these accounts and you will pay them back a fixed monthly amount for a specified amount of time. That's why non-profits are better. Mine charged me $10 month for their service.
EDIT: I found old paperwork. They're called SafeGuard
Home
Although is has been 10 years since I used them so I'm not sure if anything changed about them. Although, they're still non-profit. |
I think what you are talking about is along the lines of a consumer credit counselor or agency. Here in NJ its called "consumer credit counseling of NJ" and they negotiate with your debts and consolidate it into one monthly payment. I used them years ago and the thing that bothered me was it was still a ding on your credit. Its not like you were taking out a loan to pay them off and then paying one payment to the lender. They advocate on your behalf to allow you to make a consolidated payment to one place that gets disbursed to all your debts. If that is the route someone wants to go then its definitely better to go non-profit with your state or county. BUT if you want to pay them all off and have that reflect positively on your credit report and have one payment you will have to borrow the money. At least I think this is the way it works.