Should I go through Consumer Credit Counseling?
Posted in Personal Finance on 09/05/2008 06:48 pm by admin
Lyn93 asked:
I am overwhelmed with loans, Credit Cards, and bills. The thing is I have decided to go through Consumer Credit Counseling to have my interests on my loans lowered and pay off my loans, and the Credit Cards which are now in collections. I cannot handle this debt on what I make, because my job has cut hours, and cut completely out overtime. I was told by someone who went through Credit Counseling, and she sent them the money that they were suppose to send the different bill collectors to pay their debt, but the Credit Counseling took too long sending out those payments, and she received numerous of calls from her debtors. Eventually the money was sent to her debtors, but it caused her credit to look worsier on her Credit Report, than if she would of handle it herself, because they took too long sending the payments. My question is, Is getting help from Credit Counselors the way to go?
NICOLAS
I am overwhelmed with loans, Credit Cards, and bills. The thing is I have decided to go through Consumer Credit Counseling to have my interests on my loans lowered and pay off my loans, and the Credit Cards which are now in collections. I cannot handle this debt on what I make, because my job has cut hours, and cut completely out overtime. I was told by someone who went through Credit Counseling, and she sent them the money that they were suppose to send the different bill collectors to pay their debt, but the Credit Counseling took too long sending out those payments, and she received numerous of calls from her debtors. Eventually the money was sent to her debtors, but it caused her credit to look worsier on her Credit Report, than if she would of handle it herself, because they took too long sending the payments. My question is, Is getting help from Credit Counselors the way to go?
NICOLAS
09/05/2008 at 11:54 pm
Going to counseling might help but the important part is – which counselor. There are many TV ads for them claiming to be non-profit etc. DO NOT assume that they are free, or working to help you. They may charge you a lot of money and not give you any worthwhile advise.
My suggestion is to talk to your credit card/loan companies directly and ask them to help. Yes, they DO want to help because it is more profitable for them to help you pay them back.
09/08/2008 at 1:12 am
Well, CCC will go on your credit that you used them like a bankruptcy almost and some creditors in the future will turn away once they see you used them. I know collectors are extremely annoying, but you can tell them to deal with you only in writing, and that if they call back you will press charges, etc. If they still continue to harass, you may need to change your number, and tell the phone company you want it private. CCC usually negotiates with the creditors a lower settlement/payment plan for instance knocking off the interest on a credit card, and then you have to send payments. If you are sure you can actually make payments, then you could even call each collector tell them look this is all I can pay, but I want to work something out, and get it in writing from them the deal you make(they’d rather take something than nothing at all), and if you just don’t have a dime, you’ll have to either consider bankruptcy, or changing your number-and not making any deals with them for 7 years(anytime you do-it renews the 7 years all over again) until it erases from your credit report, and until then go cash only, and get back on your feet. Dont’ let them intimidate or scare you. You can always report any unprofessional activity to the FCRA. Look on their website for more information. I mean, these creditors can’t get any water from a dry well right? Sometimes we get backed into a corner, and feel they are all out to get us, but eventually, it will work out.
09/11/2008 at 1:29 am
Credit counseling may be the way to go for you. Unfortunately it is not easy to find a trustworthy counselor. Click on the link below to find a list of states that maintain a website of credit counselors who meet certain standards. I suggest you seek the help of a counselor on one of these lists.
I would be very weary of any ad for credit counseling firms on TV, radio, magazine, internet, etc. Any ad I have ever encountered makes shady promises and gives you the illusion that it is easy to get out of debt. That is not true. It is easy to get into debt, but hard to get out of it.
Good luck!
09/11/2008 at 8:04 pm
Hi,
I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here: