Debt Consolidation Loan Question...

Q: When dealing with a debt consolidation company, do most of them require some sort of collateral to help you out? Anyone have any experiences good or bad, any info would be great

A: -I don't somehow think it is a good idea to deal with a debt consolidation company. That usually equals high interest rates (read usury). If you have a financial problem, speak to the people to whom you owe money, organize some repayment options and go with that. In the end, you will pay it all off sooner and without being drained of all your blood in the meantime. -Your best bet is to go to a bankruptcy trustee ( to file a consumer proposal) or go see a credit counsellor....you'll bugger up your credit rating, but the interest accumulation stops and you make one easy payment a month. -By debt consolidation company do you mean HFC / Citifinancial / TCU etc ? They charge exorbatant rates...as high as 35%....they then try and sell you useless insurance and other crap. Chartered banks will, if you qualify, give consolidation loans too. If you're overwhelmed see a debt counsellor, most will give you a free consultation and in the end they should be able to save you moer than their fee. .

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