Yes, stop paying cards = scam. Or maybe not exactly scam but stupid idea for sure.

The only debt management company you should work with is this group of non-profits:

[https://www.nfcc.org/](https://www.nfcc.org/)

The stop paying cards way screws your credit. The NFCC way can actually improve your credit, lower your interest rates (sometimes to 0) and stops the creditors from contacting you.

These companies are trash. They don't have a fiduciary duty and don't really follow through on their promises. I contacted one when I was younger but they don't provide guarantees so I told them to buzz off.

I understand how it works now. It makes sense. Creditors will think I’m going to default on my loan if they don’t settle for less. But how exactly do I know they’re not just going to collect this money from me, find out they can’t settle. Then I’m out all this money and my credit is absolutely trashed

How did you think debt consolidation worked?

They will ruin your life for the next 7 years. You'll have super low credit score since they want you to go to collections on all your credit cards. Won't be able to buy a house at all. 

Id Dave Ramsey (look him up on YouTube) your way through this. You can be debt free in 1 year if you bust ass and work overtime or get a second job. If the interest rates are high you'll have to bust ass and pay them off ASAP. 

Pay off the smallest debt first, then second smallest debt, then third smallest debt. No eating out or fun. You'll be working every day every second. But it'll be worth it.

You can ruin your credit without paying them $450 a month.   Run away from this nonsense.

Try using either the Avalanche or the Snowball method to bring down your debt. There are YouTube videos that have extensive information on these two methods. Prep your own meals and refrain from going out to eat.

Debt consolidation scam or not?