nharmon
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posted on April 24, 2002 01:50:59 PM new
I was just wondering if people have had good luck with them or not. thanks
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msincognito
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posted on April 24, 2002 02:27:43 PM new
I have not used them myself, but had occasion to research them.
There was a great article last July in Consumer Reports that lays out the differences between different sorts of programs. The bottom line was that it was very, very easy to end up in worse financial shape from "credit counseling" than to actually come out ahead. The best agencies are usually the community based consumer credit counseling services (though they also have their critics.) They usually get support through the local United Way, so you can find them by calling the United Way.
Some people have done OK with national companies (like Ameridebt) but I personally would never use them. Check planetfeedback and epinions for some not-so-positive remarks from people who've been tangled up with these groups.
There is a third category of credit counselors who can be best described as "fly by night." They will steal from you. Stay away.
I thought of one other resource: The Federal Trade Commission has a good resource site. It's at http://www.ftc.gov/bcp/conline/pubs/alerts/bankrupt.htm
Another good resource: The message boards at creditnet.com are a great user-to-user chat (once you get past the ads on the first few pages.) There are some really knowledgeable people there. Also check out the forums at bayhouse.com .
Good luck!
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sulyn1950
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posted on April 24, 2002 02:33:21 PM new
I don't really know that much about them. I had a friend who contacted one about a year ago supposedly just for information and ended up having her cards restricted! I never got all the details except that she went in to talk about consolidating all her cards and decided against it, since you loose the ability to continue to charge (duh)and the next time she tried to use one of her department store cards it was denied.
She said it took her several calls to get it all straightened out.
She maintained that once these companies start poking around in your credit history, the card issuers get nervous and may cancel your card even if your NOT behind.
But this is all hear-say so I may be 100% WRONG...
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nharmon
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posted on April 24, 2002 02:51:40 PM new
well they said they gather up all your credit cards and you make one payment to them. Some of my really high interest rate credit cards would go down to 9% or in one case 0%. So it would be nice to see the interest rates come down. But ya you have to cut up your cards and the places do close your accounts. But we are so far behind in our bills the credit cards are almost headed there now. We can make the minimum payments on the small credit cars but the three bigger ones it was hard to make the minimum payments. Then they would call to arrange to do a check over the phone for the minimum amount due when a payment would be late. More than once they more than they should have. We have been filling out applications with one debt management place. Some of the credit card places we deal with are nasty. Chase called today and told me to give them a check over the phone today or else!! She was so mean and so crabby when I wouldn't give her a check over the phone I think she was actually jumping up and down. I know they work on comission but that was just rude today. I was crying and then she really let me have it. I didn't know they could be that aggressive to people. Debt sucks!
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sulyn1950
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posted on April 24, 2002 03:07:51 PM new
nharmon-Have you tried dealing with the cc companies yourself?
It's my understanding that these debt reduction companies just negotiate a deal with the cc companies and apparently the companies give them a % to collect the money.
You send one check to the company, they dole it out to your creditors.
Seems you could cut the middleman out.
Just contact the companies and tell them you would like to pay off the cc, but you'll need a lower rate and perhaps if penalities have been assest, you'll need those reduced or removed and you will pay off your debt.
You might mention that your considering using one of the services that will negotiate for you. Maybe the banks would rather cut the middle man out too???
Sure wouldn't hurt to try.
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nharmon
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posted on April 24, 2002 03:38:02 PM new
I did try that route too. Not much luck. Thanks
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stusi
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posted on April 24, 2002 05:49:12 PM new
There are scams which amazingly continue to operate today. They claim to be able to REMOVE negative credit items from your credit reports. This is IMPOSSIBLE! What may happen for a brief time is that while under investigation a particular item may "disappear" from your report-maybe 30 days max. It will be put back on once the investigation is found to be bogus. Consumer Reports exposed this many years ago.
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REAMOND
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posted on April 24, 2002 07:21:18 PM new
Many of these "non-profit" debt outfits are in fact entirely funded by and founded by the credit card companies.
They don't want you to file bankruptcy. Credit cards aren't secured debt so the credit card companies lose big.
What you need to ask yourself is - What is worse, having a bad credit rating or filing for bankruptcy ?
Stringing out a bad credit history may be just as bad as a bankruptcy as far as getting credit.
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gravid
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posted on April 24, 2002 08:13:16 PM new
I had been keeping all my payments up just fine and was not having any problem until one of my credit card companies noticed that I had not been employed for about a year. They suddenally bumped my interest rate up from about 10% to about 28% and told me if I wanted to keep the account open and be able to use the card I had to agree to a bunch of new terms such as a $50 fee if I was late with a payment and that the entire balance would be due then. Of course I told them to cancel the card and I would pay them off under the old terms. The next month everyone else hit me with similar terms and they precipitated the very bankruptsey that they all were afraid of. Rather than let things go as they had been just fine they all seemed to think that THEY would be the one to suck a few last bucks out of me before I went down.
If you have any visible trouble these companies are on you like lion pulling down a limping deer. Don't wait to file at all.
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REAMOND
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posted on April 24, 2002 09:06:44 PM new
I knew a guy that he and his wife got laid off and couldn't make the payment on the new car. They were a payment behind.
They talked to the bank and they asked if they could just make half the payment and the Bank eagerly agreed. They made the 1/2 payment and the bank reposessed the car the next week.
[ edited by REAMOND on Apr 24, 2002 09:11 PM ]
[ edited by REAMOND on Apr 24, 2002 09:12 PM ]
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MAH645
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posted on April 28, 2002 12:58:42 PM new
I contacted Ameridebt,they want 3% upfront of the total debt you owe.A $20.00 donation to set up you accounts and $7.00 a month for each debt they are collecting for. Silly me for checking I thought I heard them say it was free.
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nharmon
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posted on April 28, 2002 02:45:54 PM new
ya we checked on that management program too. Did you ever have a credit card company want you to give them a check over the phone? Only reason I ask is because it sounds like you are in the same boat as we are.
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junquemama
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posted on April 28, 2002 08:54:19 PM new
Somebody say BOAT ?
There are other options.....
http://www.dueprocess.org/1000/
(Been awhile)
[ edited by junquemama on Apr 28, 2002 09:02 PM ]
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gravid
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posted on April 29, 2002 02:57:28 AM new
The Two FGaces of Debt - The Fed. Reserve Bank of Chicago discusses what debt IS.
http://www.chicagofed.org/publications/twofacesofdebt/twofaces.pdf
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mlecher
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posted on April 30, 2002 09:49:05 AM new
To give anybody a check over the phone gives them the right to empty your bank account when they please. And if you have a past-due debt with them, they can do it with impunity.
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barbkeith
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posted on April 30, 2002 02:43:16 PM new
Years ago when my ex and I separated I went through Consumer Credit Counseling. He and I had rack up some credit card debt and of course the accounts were all in my name. I gave them all my credit cards and they cut them up in front of me. I paid them one payment of $170 a month for almost 3 years. It worked wonders. I still got a statement from each company with my payment applied (made by CCCS) and watched the balances go down. The 2 1/2 years was long but I made it. Making an appointment and talking to them sure won't hurt. BTW, CCCS is free. Barbara
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