can someone use debt consolidation to pay off someone else's account?
540165
Debt consolidation is not a good idea.  It doesn't solve the problem which caused them get into debt in the first place.\n\nIf you want to help this other person then help them understand how to manage money so that they can get themselves out of debt. \n\nCheckout 'Total Money Makeover' book and/or 'Financial Peace University' (13 week course) at www.daveramsey.com.
729576
No, but its not very sensible as you are continuing to mount up interest charges.  Contact them and see if you can come to some arrangement which will make it easier to pay.  \nDONT IGNORE IT ANY LONGER!!!!
128849
Go to your local bank and ask them if they have any ideas for debt consolidation.  They might have a personal loan you can apply for.
968889
If at all possible, go to your bank. They may be willing to give you a loan which means that you can pay your debt off with one automatic payment a month. I did this and I was amazed that they said 'yes'!\n\nOf course, this doesn't make the debt go away, you've still got to pay it back. The smart thing to do is get a grip on your finances, don't get into any more debt, and aim to pay the bank back quicker than they want you to.\n\nIf the bank isn't an option, then there's a website here with lots of information, pros and cons of debt consolidation. If you go down this route it really does pay you to do your own research and shop around.\n\nGood luck!
560811
yes.  just agree to a settlement and make sure they understand that u are trying to clean up bad credit.  They will work with you because getting some of the money that you owe them is better than not getting any.
196733
Of course they can. They are a collection agency. A collection comes along and takes over where the original credit grantor left off and gave up. They get a portion of what was owed on the original debt like 25% or so. Sometimes they purchase your debt from the original creditor for pennies on the dollar! Remember, the collection agency isnt your friend no matter how nice they are. They're in it for you money; as much as they can. Sometimes they will offer a "paid in full" for a lump sum of just half of what was owed. Make no mistake. Even doing that they still make money although they wont let you know that. You need to arm yourself with credit knowledge. Start by going to annualcreditreport.com and getting your free annual credit reports. Learn as much as you can by yahooing or googling about such info. If your debt is old, it might be better to not even mess with the collection agency. By law, a negative (unapaid) item in your credit report has to be removed after 7 years. Hope I helped some. Good luck.
1141786
Yes, I believe so.  The best course of action is a debt management company instead of borrowing more.  Try In Charge Debt Solutions.  A friend uses them and seems very satisfied.  They call all your creditors, get your interest rate removed or reduced and consolidate your monthly bills for a lower payment than your total is now.  They charge a small monthly fee but the pay back amount is still less than if you did nothing.  Just do an internet search on In Charge Debt Solutions and they come up along with several others.
39873
Yes you can,there are many co's who will help you out in consolidating all your bills into one.And being a loan officer I like to suggest you that its better to consolidate your bills with you house mortgage if you have one.
1116520
Yes!  I consolidated my debt using  a company called Auriton- they have a wonderful customer service team and it was easier than you'd believe.  Less than three years later and I am 100% debt free!
888245
The credit company does have ways of satisfying the debt.. turning it over to a collection agency, taking him to court, which, BTW, will be on his credit record and he'll have a tough time convincing anyone else to give him credit with that showing up.... and there's more. If he doesn't pay back the company after the court determination, the loan will continue to accumulate interest at a high rate until it does get paid off... years from now he'll be in debt for thousands more than he ever owned on that original credit.\n\nWith a secured debt, the company would just take whatever was used to secure the debt... car, house, property.
844691
Talk to your bank about getting a consolidation loan to pay them off, or put them all on one credit card so you'll just have one payment to send.
938912
You can contact the creditor and settle the debt for less than what is owed, if the creditor is willing to negotiate with you.\n\nYou can also bring a civil suit against the creditor to demand they remove the debt from your report.  This will avoid the criminal charges against your family member by mearly requiring the creditor to prove the debt is yours in court.  Since it's not, they won't be able to prove it and a court will likely require it removed.  The burden of proof will be on them - not you.\n\nReally, if you get a lawsuit written by a lawyer and mail a copy to the creditor with a cover letter saying you intend on filing it in court, you will likely get them to cave to your demands without doing anything further.  No one likes to go through the expense and headache of a lawsuit over something that is probably a very small dollar amount.
223712
Most debt consolidators will negotiate with your creditors to lower your interest rate so you can pay them off (which they will do because if you can't pay your bills and file for bankruptcy they don't get any of their money.) \nBut there are some that will consolidate your debt by paying all of those companies off with a large loan from them. They will give you an intrest rate on that loan that will be lower than what you had on your credit cards (or whatever your debt was from.) \nThey do help, even if the company makes money off of you, you save money as well and that is what helps YOU out.
1151204
Debt consolidation companies that claim to reduce your debt make you pay a monthly payment, and when they have enough money saved up, they will negotiate settlements with your creditors. In the mean, no payments are made to the creditors so they will still be contacting you and report as past due and settled accounts to your credit bureau.  So, it may save you some money, but your credit is shot for a while. Plus they will charge a monthly fee.\n\nCredit counseling agencies make payment arrangements with the creditors based on the creditors policies. Creditors will reduce their interest rates and stop fees but will still get the full balance. Generally your payment is lower. It's also designed to pay off in 3-5 years. The creditors may notate the account that it's being paid through a credit counseling agency which may show as deragotory to some lenders. In the long term, since the debt is paid off, it won't be as bad. \n\nIn conclusiong, Debt consolidation or settlment companies may save you money, but it will hurt your credit. Credit Counseling will help your credit in the long term, but be more expensive since you pay back the full balance.\n\nI know that's more than you wanted to know.
189037
It never hurts to ask, but, they are in the business of making money, and as stated above, unless they think you are in serious contention to completely default and/or file for bankruptcy, they are not willing to make these types of deals.\n\nThey may make this deal if you go through a credit counseling agency, but they will do that through them, who act as a middle man...accept, you will basically have to tell them that you are broke...which you are not...\n\nif you seriously are in need of credit counseling, you may be able to wipe out  20-40% of the balance....however, with the bankruptcy laws changing last year, credit counseling is required prior to full dismissal in bankruptcy court...\n\n\nhttp://www.nfcc.org/
908651
It sounds fishy.   If you have that much money to give to someone else,  just pay off your own debt and that will help you too.  I know when I opened to much credit too fast, it hurt my credit score a bit and were only talking about 1500 dollars.  This company is talking about credit lines of 10-15 thousand each.  That could show you as out of control and a credit risk and lower your score.
345681
That depends on what you do after you transfer it.\nIf you leave the balance like it is it wouldnt be good because now you have another line of credit. (which can be used to further your debt). It also depends on the limit of your new card. Typically it will be lower than your old one so if you want to transfer the whole balance at once you will be closer to maxing out the new one (percentage wise). This also can bring down your score. Try to keep your card at least 25% below it's limit. I would transfer and pay off a chunk at the same time. Then if the card you are transfering from is your oldest I would shred the card (but dont cancel the account).