How do credit card consalidating work?

i have 8 cards totaling 17k in debt. yes its a mountain of mess. but i didnt go out and live large everyday either.

anyways. my question is how does those companies work. i always hear them say they will put your debt together into one debt and give you a low monthly interest rate.

how is that possible?

they can simply just combine all my 8 credit cards and lower the rate? dont they have to pay visa, amx, disc, etc and negotiate with them?

all answers or suggestions are appreciated. thank you.

How do credit card consalidating work?

yes they contact the companies on your behalf and ask for a lower interest rate, on mine years ago they cut it in half..it didnt start right away but within the first two payments, the company you pay to do this even though some claim you dont, i think we paid about 2 bucks a bill per month, will have you do direct payments out of your bankaccount or check..and they pay all your bills that you give them. your accounts cannot be used once you turn them over to the company, your credit report will also say that they were consolidated, doesnt ruin your credit doesnt help it either, and some credit card companies will not lower your interest. also didnt lower our payment actually increased it by about forty bucks a month. the only good thing was it paid off all the small ones first ...when one was paid off all that money went to the next lowest bill..when we finally paid them all off we had been paying for about five years we still had alot of debt it was a temporary solution to a huge problem

good luck

How do credit card consalidating work?

The consolidation companies have arrangements with most/all of the major credit card issuers. They can get your interest rates lowered on your current credit card balances.

It does put an entry in your credit report for each of those cards that basically says that you didn%26#039;t pay your entire debt--so it will damage your credit for a number of years.