Is debt consolidation a scam? I’m at the end of my rope.?
I got laid off two months ago and have been working odd jobs since. I have student loans, a car payment, rent, phone and credit cards and I pay what I can but I am being hounded with 20 calls a day. I’m a good person. I am so scared. Should I consolidate my debt 
. Or just bankruptcy since I am 24
Lenders usually only give debt consolidation loans to people with good credit….Even if you qualify, doing debt consolidation can be a dangerous path to go down…It takes extreme discipline to do this…..After their credit cards are paid off from the consolidation loan, to many it’s simply too tempting to use all that available credit again on their credit cards…and you can quickly find yourself in twice as much debt as before.
Another option: Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They DO NOT negotiate settlements.
They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you’re enrolled in the CCCS debt management program…. Otherwise, it can be a very good way to deal with your debt.
