this post was submitted on 30 Mar 2025
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debt consolidation fucked me, now what? (lemm.ee)
submitted 4 days ago by muusemuuse@lemm.ee to c/personalfinance@lemmy.ml
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a bit over a year ago, I went through debt consolidation. I signed up with a company that offers me a monthly payment to kill my credit cards and provide me legal representation should I need it. It's been about a year since and they have only shut down some of them. There are 1 or 2 still left open.

I was told not to make any payments on the cards. Let them complain and threaten with collections. This will let the debt consolidators buy the debt for cheap if the credit card companies refuse to close the cards. They have been tanking my credit for months and they aren't closing my cards.

Now I'm in a bad place financially. I lost the job I had at the time I went into consolidation and the current one isn't paying as much. I'm not missing any payments but it's trapping me.

I may need to leave my state for some place safer soon. But I have such a poor credit score now that I cant imagine anyone renting to me now.

Debt consolidation feels like it was a scam.

Should I declare bankruptcy and start over?

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[–] ShepherdPie@midwest.social 4 points 4 days ago

If anything you could try doing promotional balance transfers onto a lower interest rate credit card if it gives you say 12-24 months 0 interest rate -

Just be aware that if you don't pay off the entire balance by the end of the 12-24 month period that they will hit you with the entirety of the back interest starting from day 1, plus you have to pay fees to do a balance transfer so this is probably not an option in OP's case.