Credit Counseling? Is it worth it?
My husband and I are separated and I have been stuck with the credit debt which is in my name. I have paid it only by borrowing from other accounts. This will catch up to me in the end. My minimum payments run me around 600 a month. I also have a car loan that I'm paying. So are there any reputable credit counseling agencies? I would like to hear personal experiences about how they lowered your monthly payments and helped you to get out of debt. I also know many of you are Dave Ramsey fans. His method is not going to work in this case. Also, I don't want to file bankruptcy if I can help it.
Public Comments
- Important Questions to Ask When Choosing a Credit Counselor It’s wise to do some research when choosing a credit counseling organization. If you are in search of credit counseling to fulfill the bankruptcy law requirements, make sure you receive services only from approved providers for your judicial district or at the bankruptcy clerk’s office for the district where you will file. Once you have the list of approved organizations in your judicial district, call several to gather information before you make your choice. Some key questions to ask are: What services do you offer? Will you help me develop a plan for avoiding problems in the future? What are your fees? What if I can’t afford to pay your fees? What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive? What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure? How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? I have helped many get their house of debt in order by utalizing what the FTC provides. Here are the links to help you out. They are free and from the FTC. http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm Govt approved credit counseling agencies. http://www.ftc.gov/bcp/conline/pubs/credit/crdright.shtm Credit and your consumer rights. Hope this helps.
- Call Consumer Credit Counseling Services at 1-800-388-2227 they are the largest non-profit credit counseling service in this Country and have offices in most all major cities. I used them several years ago and they lowered my monthly payment and interest rate, I was debt free in 36-months.
- I'm a big fan of Jerrold Mundis -- "Get out of Debt" is his book. It really changed my life and was much less stressful and costly than hiring a credit counseling agency. I'd say if you ARE going to go that route -- go with one of the government ones that do NOT have any hidden fees.
- Usually Credit Counselling agencies are run on non-profit lines.An independent third party works with you and a full list of debts,assets and income must be provided.Most credit granting agencies would sooner get something on the amount owing rather than have you go bankrupt and often get nothing.So,often the third party can arrange a lower,slower repayment plan that is acceptable and sometimes can also get creditors to agree to a less than full repayment.Once an agreement is reached ,it is important to keep to the arrangement
- Call Consumer Credit Counseling Services at 1-800-388-2227 Start by looking around a good credit counseling company, and not become a victim of one of the various credit counseling scams that are prevalent today. Do not be misled by any ad that assures you quick fixes for your credit report. This is an impossible promise. Instead search for a honest company accredited to Consumer Credit Counseling Services. Then fix a meeting with a professional credit counselor, and apprise them about your debt situation. Do not omit anything as they will require the entire information to draw up re-payment plan according to your situation.
- If Dave Ramsey's plan doesn't work then your screwed. The only way to get a them to give you a lower rate is to call and talk to them. They would rather talk to you than they would someone else. They might give you a lower rate they might not. They do make the rules. Most if not all of these so called debt counseling are a ripoff. What they do is not pay your debt for months and then try and settle for less. No magic. No special skills. They just dont pay. It trashes your credit. Also,Your creditors dont have to deal with someone you hire to take care of your debt. If you use one of these rip off places and they dont pay your debt. You, and you alone are still responsible for the debt. Your creditors will come after you and not the company you hired.
* Some answers may have been provided by Yahoo! Answers.