dear researchers,

I have gotten myself into trouble.  I have built up quite a lot of
credit card debt and I am working on paying it off.  I have not yet
fallen behind on any payments, but I am worried about falling behind. 
The interest is quite high and so I have been thinking about going to
a debt consolidation program.

some notes: I saw in a previous question that some are good, some are
so-so and those that are 'free' are not really free, just the quote
is.  I have well over $5k in debt, so I am probably not a good
candidate for a bank consolidation loan.

My question:

would a consolidation service be appropriate even though I have not
yet fallen behind on payments?  I ask because based on what I could
understand from reading
https://answers.google.com/answers/main?cmd=threadview&id=6416 what
happens is that some of these companies renegotiate with your
creditors for lower rates, but some creditors will mark your account
as delinquent (while others as current).  Is it a good or a bad idea
to sign up for a consolidation program, in light of the fact that I
have not yet fallen behind?  I don't think I will either, but lower
interest rates would help speed payment greatly, of course.

Please ask for any clarification.

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Clarification of Question by banchan-ga on 23 May 2003 08:21 PDT

in light of all this, I am thinking of going it alone.  It is partly
the fear of having the 'delinquent' label, and partly being afraid of
dealing with consolidation services which may or may not be shady.  If
going it on my own, I wonder about how to try to negotiate rates with
credit card companies (is that something that they would laugh at as
ridiculous, or is it something I should just try, why not, I've got
nothing else to lose [other than my money of course]?)...

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Request for Question Clarification by cynthia-ga on 23 May 2003 09:49 PDT

Hi banchan,

I've used a Consolidation company in the past. It's fairly easy to
find one that is legit. As far as your credit report is concerned,
your rating would be improved by using this type of service. Making a
commitment to repay, in whatever form, and following through is what
counts. The Consolidation company will be able to negotiate MUCH
better concessions than you alone. I'd reconsider...

~~Cynthia

If you are not behind on your payments at this time, you should not
consider using one of these services. If you do use one , it can come
back to bite you. Many lenders (mortgage and others) treat this
exactly the same as a bankruptcy. The only time these can help your
credit is is if it is totally screwed up already.