On Tv Like Ameridebt And Such?

Q: Has anyone ever used one of those debt consolidation services you keep seeing on tv like Ameridebt and such? Do they do any good?

A: -I've never had need of one, but I've known a few people who have done this. Some companies are OK and some are a scam, locking you into a bigger or longer-term loan with no real help. I don't think any of them really do anything you can't do yourself with a home equity loan or a low interest credit card. Mostly they are home equity loan agents. The monthly payment is lower, but you'll probably be paying forever. It may be better than paying a credit card at 24%, but they charge you a lot for very little service, unless you are incapable of seeking the loan yourself. -There was an article in Consumer Reports a year or so back. Most of 'em are Not Good but there are some that are Not Bad. Ameridebt was mentioned as one of the ones to avoid since they generally applied your payments to *their* fees first even when you thought the payments were going to the creditors. As a result, some folks got even deeper into debt trying to get out of it.

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