Credit Counseling

[Gemmi]

Has anyone here used credit counseling? If so, do you have any recommendations?

 

[onebdzee]

If so, do you have any recommendations?

Stay away from them...they will ruin your credit

Best thing you can do is to call all the credit card/loans that you have and talk to them yourself....they will help you and on your credit report it will say "closed by account holder"

 

[itsbob]

Has anyone here used credit counseling? If so, do you have any recommendations?

Depends.. don't use any online debt counseling service. There is one (CCCS I think)that is 'supported' by the three credit companies.

You need to find a local office, and physically go in and see them.

They can reduce your interest to 0% if there is a need, and you pay them one check a month and they pay your bills.. Everything gets paid off in 3 - 4 years, earlier if you can send extra money a month.

Make sure they are upfront and honest, that they will be willing to call your credit companies with you sitting there, so you know EXACTLY what deal is made, how much each company is getting, AND how much you are paying them.. If they don't want you there when they talk to your credit companies run for the door.

 

[Joebagel]

I have tried calling the credit cards 5 times and so far 4 times they told me to go get another card with another company and transfer the balance, and the 5th time they told me to go to a credit counsler. I have very good credit (score is in the upper 700's) but just a lot of debt at a very high interest.

After doing some research on credit counslers i found there to be two kinds. Type 1 will just start accepting you money and not pay the credit cards until they are over 6 months late and then agree with a reduced settelment. This will ruin your credit, but could save you a lot of money.
Type 2 is where the counsler will work out a lower interest rate with the credit card companies. I have heard a lot of mixed reviews on this and would love to hear what this forum has to say about them.

 

[ProfMoneyWise]

Consumer Credit Counseling Service is the only one you should consider. However you will come out the other end of this with your credit viewed as if you had filed for bankruptcy.

Do not go with the various ads you see on TV. The basic plan there is you send them your money, they take a big fee, tell you to quit paying the cards. Eventually this softens up the cards you owe and they then come in and negotiate a settlement for you. This is if they do it at all. There are numerous horror stories out there of the money being taken and nothing done on your behalf at all.

You posting the question is the first step. I suggest the followign plan in the near term:

1. Write down everything you spend for the next 30 days. You do not need to keep receipts, just write it down.

2. Find The Total Money Makeover by Dave Ramsey. This is a quick read and The Baby Steps are a plan I have found works for me and others I have worked with in the past.

3. Do the math. How much are you bringing in and how much are you spending? At least do the math.

I have found the solution to this debt problem is in the mirror.

Good Luck.

 

[Dye Tied]

Has anyone here used credit counseling? If so, do you have any recommendations?

Are you with a credit union? I know people they have helped with credit counseling. Stay away from the others.

 

[itsbob]

Consumer Credit Counseling Service is the only one you should consider. However you will come out the other end of this with your credit viewed as if you had filed for bankruptcy.

Not true.