Comments on: Consolidated Credit’s Misleading TV Commercial

By: Norm

Norm — Mon, 03 Aug 2009 04:05:37 +0000

Personally I am shocked that no on has pointed out the glaring error in the commercial. Apparently Consolidated Credit does not know how to amortize a loan. The 33 year figure is incorrectly calculuted using a monthly principal payment of $13; the $100 min less the $87 interest ($13/month X 12 months/year X 32 years = $4992). I find it laughable that even the incorrect estimate of 33 years has been rounded up from the (still hugely incorrect value) of 32.0512 years. More importantly they completely disregard the fact that the as the balance of the load is paid off, an increasing portion of the $100 pays toward the principal. It will take far less than 33 years to payoff such a balance… In actuality a $5000 loan at 21% apr with payments of $100 per month will be paid off in:

just under 10 years… NOT 33 years!

By: Ken

Ken — Wed, 28 Jan 2009 20:59:34 +0000

I have been in the program for 18 months. I have reduced a 63,0000 debt to 40,000 over that period. I no longer have any penalties and my interest rates have all been lowered. I pay one bill instead of 15. It is working for me. i will be 100% debt free in 2 more years.

By: william bonney

william bonney — Sat, 24 Jan 2009 05:48:59 +0000

Thanks for the comments on the topic of credit consolidation. You all helped with my decision. http://www.outlawphotography.org

By: Jay

Jay — Thu, 15 Jan 2009 23:32:31 +0000

I wouldn’t deal with an organization that has a spokesman that looks like a raging alcoholic anyways.

By: Credit Report Repair

Credit Report Repair — Wed, 17 Jan 2007 02:45:58 +0000

Since this post, several non profits have been shut down or sued. Here’s a great example of an older lawsuit

http://www.ftc.gov/opa/2003/11/ameridebt.htm

By: Pam

Pam — Mon, 22 May 2006 13:52:05 +0000

And where is the extended commercisl?

By: kassy

kassy — Fri, 28 Apr 2006 20:50:01 +0000

I’m not being charged 4% on any of the cards I have balances on. Bank of America is charging me 1.7%, Citi has only been asking for $20 regardless of my balance, it works out to 1.6% and Capital One is charging 3%. I’d love to be charged 4% so it will get my debt snowball paid off faster.

By: Jerry

Jerry — Tue, 25 Apr 2006 20:35:49 +0000

Most are at 2%. Some have decreased to 1.5%. The 4% minimum payment, if it is out there, is the exeception rather than the rule.

By: Kim

Kim — Tue, 25 Apr 2006 19:22:48 +0000

As much as I think those types of companies are total sharks, and I would never deal with them, they may not have been totally misleading. I still have a credit card that is at a 2% minimum payment. I’m still in the 0% interest window so I don’t know if that makes a difference. That ends next month though so it will be interesting to see if the minimum changes then. Anyway, my point is that 2% is still out there.

By: LAMoneyGuy

LAMoneyGuy — Tue, 25 Apr 2006 18:50:15 +0000

I pretty much assume that all credit consolidation commercials are misleading from the get go. I really don’t understand how this entire industry goes around as “non-profit”. Are they really? I wonder how their people are paid and what experience or credentials they have.