In Need of Debit Counseling

**Snoopy2645** · 07-03-2006, 07:52 PM

Re: In Need of Debit Counseling

Not sure he should contact anyone for debt counseling I really believe the only one who can help him is himself he needs to get some books from the library & do what he needs to & get this paid off & it wont change until he is ready he will need to change alot of things & maybe try to get the rates lowered on all cards!!

**lillyb** · 07-04-2006, 06:02 AM

Re: In Need of Debit Counseling

I agree, there's tons of info out there that he can read to learn how to get a handle on this, himself. Or even give him this link, there's tons of knowledgeable people here that I'm sure can help him with this.

For the counseling services, the only one I've heard anyone talk about as not being a scam is Consumer Credit Counceling Sevices (CCCS). Still, if he goes with them, watch them closely to make sure they are doing their jobs. Just not sure if I could trust my money in someone elses hands, but that's just me.

**NyGiantFan** · 07-04-2006, 06:20 AM

Re: In Need of Debit Counseling

Go to CREDITBOARDS.COM great place to start. GREAT PEOPLE! NO counceling services, they suck and can make problems worse. Remeber not only does your brother need to get out of debt he must understand and change his financial habits ( unless it was unavoidable such as medical or unemployment) inorder to never repeat that pitfall. Self education to me is critical not only to help himself in the long run but also to make sure he passes his knew found knowledge onto his love ones so they dont ever fall into the trap of consumer debt.

**questions** · 07-04-2006, 07:38 AM

Re: In Need of Debit Counseling

I'm looking for a little advice from on credit card consolidation. I have about 12,000 in credit card debt and would like to consolidate to a lower interest rate. The problem is that I've never done this before and don't know what the norm is for consolidating my debt. I've tried to stay clear of these companies because I've heard that there are a lot of scams out there by which these companies charge fees and don't gurantee the low interest rate for the life of the debt. About a week ago I got a telephone call from one of these company offering to give me a 6%-9% interest rate on the amount consolidated but I would have to
pay a 40.00 fee each month.

Please help me answer these questions:

Do all credit card consolidation companies charge a fee?

Please list companies that are ligitimate if you know of any.

Is there another altenative?

**JoyJoy** · 07-04-2006, 12:14 PM

Re: In Need of Debit Counseling

I agree with NyGiantFan about NO counseling service. It was my experience long time ago when I was pressed up against a wall with mounting medical bills that I first contacted credit counseling corporation. They were able to negotiate for me to get a lower interest rate on my bills, but credit counseling corporation WAS LATE paying my bills a couple of months. The 30 day late x2 was added to my credit reports at all three bureaus. I got out of that counseling and started paying my own bills. (They, in fact, made my situation worse! ) Your brother can do it too. One just has to get angry with their situation enough to make a change and no one or anything will get in your way if you're really sincere! It takes sacrifice and discipline but the reward of being debt free is well worth the sacrifice. Good luck to your brother!

**JoyJoy** · 07-04-2006, 12:38 PM

Re: In Need of Debit Counseling

Originally posted by questions

I'm looking for a little advice from on credit card consolidation. I have about 12,000 in credit card debt and would like to consolidate to a lower interest rate. The problem is that I've never done this before and don't know what the norm is for consolidating my debt. I've tried to stay clear of these companies because I've heard that there are a lot of scams out there by which these companies charge fees and don't gurantee the low interest rate for the life of the debt. About a week ago I got a telephone call from one of these company offering to give me a 6%-9% interest rate on the amount consolidated but I would have to
pay a 40.00 fee each month.

Please help me answer these questions:

Do all credit card consolidation companies charge a fee?

Please list companies that are ligitimate if you know of any.

Is there another altenative?

Depends on how good your credit is as to what type/amount of fee you will pay and where you can go to consolidate your bills. If you have good credit, you possibly could qualify for an Amex, Citibank or Household Bank card with a $12,000.00 limit. Amex has a card called Blue Cash with a 2.99% interest rate for the life of the loan transferred through balance transfers. There is no fee and you can pay off 4 bills at one time on this card. You can apply online and get an instant decision.

Then there is your home equity where you can apply for a home equity line of credit. Rates are climbing here and your house is on the line so be careful! There are places like Wells Fargo Financial and Citifinancial but their interest rates can be very high. Citifinancial does a lot of business here in the New York area and many people like the way they conduct business. Finance companies are frowned upon by other lenders or credit card companies but one sometimes doesn't have an alternative. The same idealogy regarding debt applies to consolidating your debt.....Mean it and do everything you can NOT to run that debt back up again when you get this debt paid off or consolidated into one bill a month. So easy to do. Bankrate.com is a good website to look at and get advice also. Good luck to you!

**JoyJoy** · 07-04-2006, 12:53 PM

Re: In Need of Debit Counseling

Originally posted by iZoe

My brother just informed me that he's about 15,000 in debit to credit cards. I want to contact a debit counseling program, but there are now so many that I'm not sure who's a legit (i.e. non-profit) and who's just scaming for more of a poor soul's bucks. Does anyone here have any experience (good or bad) with particular debit consolidation organizations? Did they really help you out of debt or were they a total rip-off... Thanks for any help and advice you can give to someone totally ignorant of this kind of thing.

Your brother could call the companies directly and tell them how much he can afford to pay monthly. The card companies used to have a program called "hardship" whereby one has to make three payments in a row and on time and the credit card company would lower the monthly payment. I would tell the credit card company that they could automatically take these payments monthly from my checking account to show good faith. Just a suggestion. I know the pain.

**Ima saver** · 07-06-2006, 07:43 AM

Re: In Need of Debit Counseling

What about consumer credit counciling? First they require you to cut up your cards and no new debt. By law, you have to pay 2% of the balance each month, so i don't know how they can lower your payments. I do agree that your brother needs to learn on his own how to handle credit. He needs to take on an extra job, sell stuff, tighten his belt and pay every penny he can, on his credit cards. We all like the debt snowball, where you pay as much as you can afford on one credit card and minimums on all the others until the first is paid off. They you throw all the money from the first credit card payment plus the minimum on the 2nd. So on, til you get them all paid off.

**vsjhoc** · 07-06-2006, 09:12 AM

Re: In Need of Debit Counseling

Agree w/JoyJoy about calling credit card companies directly and with Ima about debt snowballing.

The Consumer Credit Counseling Services agencies tend to be legit. They charge a modest set up fee ($50?) and a monthly fee ($40?), and you can't keep even one credit card. He does have to check very carefully that they really pay the creditors on time.

The agencies don't actually negotiate with the credit card companies; there are predetermined interest rates that the credit card companies will drop their rates to. (I saw these rates published somewhere; I'll post the link if I can find it again.) This is because the credit counseling agencies are funded mostly by the creditors for whom they collect. The major credit counseling agencies are "non-profit" but they essentially serve as collection agencies for the creditors.

He might save himself the fees to CCCS and time spent verifying payments, and just deal with the credit card companies themselves.

As for minimum payments, I understand that the credit card companies were pressured by the Feds to increase minimum payments to at least 2% of the principal outstanding (before interest and charges) but I don't know that this is actually a legal requirement.

Your bro will find lots of encouragement on this site, so send him along!

**poundwise** · 07-08-2006, 06:19 AM

Re: In Need of Debit Counseling

You may want to read this article:

MSN Money - The consumer's guide to credit counseling

In Need of Debit Counseling