Debt/credit counseling

steve-in-kville

steve-in-kville

Joined
Dec 25, 2001
Messages
1,139
My wife and I racked up some debt on our cards. Long story, I'll spare the tears. I'm checking into the various debt couseling services that are available to reduce our monthly payments.

Has anyone used these types of services in the past?? Would you recommend them? Sound like I can do the same stuff myself, but most creditors don't want to talk unless your a credit counselor.

steve
 
All I know is be very careful. Some credit counseling companies are scams that take your money and don't pay the bills with it.
 
but most creditors don't want to talk unless your a credit counselor.
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I bet you learned that from a credit counselor's ad, right? In the real world creditors are at least as willing to negotiate a payment plan directly with you as with some dork who calls himself a credit counselor and claims to speak for you. They aren't all crooked, really, but they all charge money to tell you things you could just as easily get out of a book from your local public library at a time when you don't have money to spare for unnecessary expenses. Go to the library and see what you find.
 
Consumer Credit Counsellors is a highly respected, honest organization. About 25 years ago I got hit with a bunch of things, some health, some related to the real estate meltdown in the early 80's. They helped a lot. And they carry a lot more juice with creditors than your phone call.

My daughter was involved with them much more recently after a divorce and they haven't changed. Call them and ask for a consultation. It's free and they can help you make the choices you need to.

They also advise paying off the small bills first because that's what nickel and dimes you to death.

Good luck.

Gene
 
Thanks for the replies. I did talk with a few of the creditors and explained our situation (bunch of medical bills that insurance doesn't/won't cover). Some were willing to work something out, others tell me I'm not behind enough to negotiate, while most asked if I commited to any credit counseling services.

So basically... most don't want to play hardball until a third party is involved.

I have a co-worker that used Take Charge America and was very happy. They charged a small monthly fee for their services and provided monthly statements as to where the money was going. He also still got statements form the cards that he was paying off, and each reflected what TCA was doing.

steve
 
Beware of credit counselling companies, many are actually OWNED by some of the largest credit companies! Check this out from Collegerecruiter.com.

My wife and I did it on our own with Dave Ramsey's book, The Total Money Makeover. Lots of good ideas and great strategies to get out from under some pretty harsh debt. Ramesy's out to make money just like the rest of "them", but his financial strategies are sound and pretty obvious. Just like loosing weight by eating less and exercising...


Dave Ramsey's Site Here We checked the book out from the library and took copious notes. It worked well for us, but I know that some people haven't done as well.

You're in a tough boat, but there have been a lot of people who have gotten through worse situations with their dignity and more importantly, their finances intact.

Jay
 
Again, thanks for the replies. Its not like its *really* bad. But, at this time, I cannot make all my obligations. We had a sudden string of medical-related expenses that depleted out savings. Plus the fact that I started a new job a few months ago and my benefits had not kicked in yet. I can pay, just not at this exact moment. Know what I mean?

steve
 
Oral surgeon? Seems like he also tried for an arm and a leg.

Little bills first then make a plan with the creditors. Take what you can and pay a portion of each and put in a note that this is ongoing due to circumstances beyond your control. Soon after this, if you can personally visit each creditor with proof of exceptional circumstances, payslips and obligations showing that all you need is time they would most likely prefer easier targets.

Possibly offer a debit order?

Do not over sell what you can pay off and then default on your promise.
 
First thing I did was cut up the cards. Then I made an appointment with a lawyer, most will see you for free or next to nothing the first time and they usually give you the best advice from experience. I wanted to make arrangements with the outfits I owed but the lawyer said I'd be wasting my time and I ended up filing chapter 7 or what ever it is where it all just gets wiped away. I felt like a piece of garbage but I was in so deep it would have taken 100 years to get out. A good lawyer really helps you get through it!
Talk to a lawyer first Steve!!!
 
HomeBru said:
Beware of credit counselling companies, many are actually OWNED by some of the largest credit companies! Check this out from Collegerecruiter.com.

My wife and I did it on our own with Dave Ramsey's book, The Total Money Makeover. Lots of good ideas and great strategies to get out from under some pretty harsh debt. Ramesy's out to make money just like the rest of "them", but his financial strategies are sound and pretty obvious. Just like loosing weight by eating less and exercising...


Dave Ramsey's Site Here We checked the book out from the library and took copious notes. It worked well for us, but I know that some people haven't done as well.

You're in a tough boat, but there have been a lot of people who have gotten through worse situations with their dignity and more importantly, their finances intact.

Jay
Click to expand...

I'll second the Dave Ramsey web site. LOTS of good info there. My wife and I have been working on the plan for a few months and it really does work. By going to the website you can listen to a new show M-F from 3:00-5:00 or you can listen to past shows anytime and it's free ( unlike debt couseling services ).
 
Tertiary ditto for Dave Ramsey, his radio show, books and website. To great degree he is responsible for the Powernoodle household having zero debt, including paying off the home mortgage, the cars, and everything else for that matter.

He is no magician. Its just common sense, spending less than you earn and systematically paying off your debt. Very motivational.

He gives a big thumbs down to these credit counseling services, as many are unsavory, and you can deal directly with your creditors just like the service is doing.

Check out the book from the library, or buy it. :thumbup:
 
Cougar Allen said:
I bet you learned that from a credit counselor's ad, right? In the real world creditors are at least as willing to negotiate a payment plan directly with you as with some dork who calls himself a credit counselor and claims to speak for you. They aren't all crooked, really, but they all charge money to tell you things you could just as easily get out of a book from your local public library at a time when you don't have money to spare for unnecessary expenses. Go to the library and see what you find.
Click to expand...

Steve, I work for the second largest collection agency in the U.S. and I'm a nationally certified ACA professional collection specialist.

Our company takes a more conservative approach to collections and I can share with you my company's take on it. We won't deal with CCC or other similar agencies because we can actually negotiate better arrangements than they can. In addition, it eliminates the middle-man and saves the consumer money....it is true that an individual consumer can negotiate the same type of arrangment, as a consumer credit counseling agency, through a simple phone call to the collector. Unfortunately, not all collection agencies and/or collectors maintain the same standards of professionalism but that's something you need to find out by making the initial call.

Like CA said, you can go to the local library or for additional information, please see www.acainternational.org
 
It might not even be at a collection agency yet, so it maybe a bit premature.
 
L6steel said:
First thing I did was cut up the cards. Then I made an appointment with a lawyer, most will see you for free or next to nothing the first time and they usually give you the best advice from experience. I wanted to make arrangements with the outfits I owed but the lawyer said I'd be wasting my time and I ended up filing chapter 7 or what ever it is where it all just gets wiped away. I felt like a piece of garbage but I was in so deep it would have taken 100 years to get out. A good lawyer really helps you get through it!
Talk to a lawyer first Steve!!!
Click to expand...
I had to do the same thing myself, a couple years ago, and I did/do feel bad about it, but my blood pressure was so high over the worries and phone calls from the (many) companies/collectors that we owed money to that I was getting pretty close to a stroke or heart attack...Also, not being able to sleep at night, due to worry is pretty rough. It would have taken us somewhere around 150 years to pay-off all of our debts (due to the HIGH interest rates we were paying) at the rate we were going. As mentioned, after hiring a lawyer, the 1st thing we did was to cut-up ALL of our credit cards.
 
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