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Advice on Consumer Credit Counseling Debt Consolidation

Find more information about Consumer Credit Counseling Debt Consolidation at the best oniine resource site Teen Analyst.

Q: What are the pros and cons of consumer credit counselling and debt consolidation?
Hello, I am in desperate need of some advice as my situation is just getting out of hand. I used to have a credit score of almost 800 about 2 years ago. Now I dont even bother to check my score anymore. I made the mistake of getting some rental properties with ARMS. As time passed, bad tenants, rising interest rates and a recent wedding have REALLY put me upside down. I have tried and tried everything. A couple of my properties have nearly been foreclosed on. I have tried those firms that dispute credit issues but thats not helping out. The thing is, my revolving debt is really not that bad, I only have two revolving accounts, but they are maxed out. I just need to catch up on them and also straighten out my mortgages. I have thought of consumer credit counselling and wanted to know its pros and cons, any advice would be grateful. Thanks!

A: There is an article here about debt consolidation counseling which may help you.

I wish you luck!

Q: Consolidating debt through consumer credit counseling services?
I have approximately $2000 of credit card debt that I absolutely need to get paid down. i talked to consumer credit counseling services, a debt consolidation company, http://www.cccsstl.org/ and this is what i was told:

Basically they would cut my payments down to about $130 a month total for 3 cards by getting my interest rates lowered to between 6 and 10% approximately. I would pay it off in 2 years instead of 8 as i would now without consolidating. he said the $130 a month payment included a monthly fee of $49 directly to the credit counseling service for their help and services. Is that the normal thing when consolidating? Is that legitamet? I would only be paying $80 or so a month on the actual credit card debt and that doesn’t seem like very much to me.

Anyone have any knowledge in this area? Is consolidating a smart thing to do and does it hurt your credit in any way? Is there a smarter way to do it?

LONG-sorry and thanks!

A: Don’t touch it! Instead go to www.daveramsey.com
He is a financial giant. Great advice there. Read Financial Peace , Total Money Makeover both by Dave Ramsey.

Q: Consolidating debt through consumer credit counseling services? Info needed.?
I have approximately $2000 of credit card debt that I absolutely need to get paid down. i talked to consumer credit counseling services, a debt consolidation company, http://www.cccsstl.org/ and this is what i was told:

Basically they would cut my payments down to about $130 a month total for 3 cards by getting my interest rates lowered to between 6 and 10% approximately. I would pay it off in 2 years instead of 8 as i would now without consolidating. he said the $130 a month payment included a monthly fee of $49 directly to the credit counseling service for their help and services. Is that the normal thing when consolidating? Is that legitamet? I would only be paying $80 or so a month on the actual credit card debt and that doesn’t seem like very much to me.

Anyone have any knowledge in this area? Is consolidating a smart thing to do and does it hurt your credit in any way? Is there a smarter way to do it?

LONG-sorry and thanks!

A: I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

Q: Will consumer credit counseling services negatively affect my credit if I use the debt consolidation program?

A: yes it will

Q: Is debt consolidation considered the same as bankruptcy?
I’m considering consolidating my debt with the consumer credit counseling agency in my town but someone told me that it’s considered (i guess by potential creditors) the same as filing bankruptcy? Is this true?

A: Not at all. When you declare Bankruptcy, you aren’t paying back your debt. With Debt Consolidation, you are doing the right thing and paying back your debt.

It might bring your credit score down a bit and the cards in consolidation will be frozen.

Be careful you choose a reputable debt consolidator. Trying going on Suze Orman’s website, she gives great tips.

Q: Is a debt settlement program a good idea?
Is a debt settlement program a good idea, compared with using a Consumer Credit Counseling group, or Debt Consolidation?

A: Debt settlement/consolidation firms have you deliberately default on your credit cards to settle for less. When you use such a firm, the monthly payment you make is going towards their settlement fees and to build a settlement account. Their fees are taken out first. Your credit cards will not be paid and will go into complete default during this process, which ruins your credit rating. This is deliberate so that they can attempt settlements for 50%.

People signing up with debt settlement firms often have the mistaken impression that their creditors will gladly work with such companies..or that they are obligated to accept settlements…they aren’t. You can never predict how your creditors will respond..they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. If the process fails you can end up in a much worse financial situation.

If you’re already 3 or more months behind and you have money to offer up front settlements for less, then you can make your own offers. Get all terms in writing first.

If you’re struggling with credit card debt and you’ve exhausted all self help options, then there are really only 2 options: Entering a debt management plan through a non profit credit counseling firm like CCCS. They can negotiate reduced payments and interest but NOT settlements. Referral at: http://www.nfcc.org – If this does not work out, the other option is Chapter 7 bankruptcy.

Q: Debt consolidation or not?
I am having a hard time choosing between solution to my debt problem. i have around $8000 in credit card debts right now. All of them are in collection agencies now and I have no means in paying all of them and all are delinquent too. I’ve been thinking of doing a debt program. I’ve been looking around and have seen debt consolidation programs, debt settlement programs, consumer credit counseling, credit counseling agencies and debt management plan… and I have a feeling there are more I don’t know of. My question is which one would be the best option. By now I know my credit is bad and I have nothing to put into collateral. I’m not really comfortable in doing anything online because I want to see and talk to someone face to face. What are the fees involved in the programs? Do you have to pay them monthly too? I just need all the information I can get right now.

A: Debt consolidation programs usually leave you worse off than you were originally. My suggestion would be to call your creditors and ask them if they could get you onto a payment plan that will work for you. Also, pick the card with the lowest rate and ask them if you could consolidate all of your debt to their card with the agreement that you will close other cards. They may do this, and then you will only have to make 1 payment per month and deal with 1 company when you’re having trouble making payments. If this isn’t an option, try to make your minimum payments while any extra money goes to the card with the highest interest rate.

Q: consumer credit counseling service?
is the website www.cccsstl.org a legitimate website to seek help with debt consolidation? there are so many shady companies, I just wonder if anyone has been to this one and if it really is a helpful website or if it’s just another scam.

A: CCCS is among the best in the business… dave ramsey says not to use any if you can help it, using one you will be treated as if you filed a chapt 13 bankruptcy… it will go on your credit report as such…

however, if you must use one, CCCS is among the best… most others do little for you, other than take your money.

Q: i have got myself into debt, has anyone ever used the consumer credit counselling service?
i have got into debt through credit cards, catalogues, store cards and personal loans. would i be better getting a consolidation loan or having the consumer credit counselling service act on my behalf?

A: You could try the Citizens Advice Bureau. They have fully trained debt advisors and their service is free.

Q: Should I join Consumer Credit Counseling? They will charge me $468/yr to pay my bills with my money.?
It sounds great, I “only” have about $9k in credit card debt and it should be payed off in 3yrs. Right now I have very little money left after paying minimum payments each month. I will have $145.00 extra each month. However, I’ve looked into several credit reporting agencies FAQ’s and they state that this may hurt you because the CCC agency will be “negotiating” your interest rates, which means you are not paying the entire debt that you agreed to off. I have enough negative items on my credit report so I dont know if this will put my good accounts into negative if i have to close them and then CCC ageny will also note that I am under a debt mgmt program. Any advise, my only alternative would be a consolidation loan, but i doubt i would qualify?

A: Don’t do it. Credit Counseling hits your scores harder than filing bankruptcy. They effectively crash your credit back to the way it was before you had credit. And besides, the only counseling companies that really can help you are free and non-profit. But they will tell you exactly what the previous poster and I told you unless you have over $15k debt and make minimum wage.

$9k isn’t all that much. Just pay your minimums until you can afford to pay more. Maybe get rid of Cable TV and Internet connection for while so you can get at least one card payed off. Get rid of Either cell phones, or home phone bills. After that, use the money you were paying to the the first card to pay more on the next card. Pay them off in order of highest balance first. And keep snowballing them until they gone.

Snowballing = Pay one off then use the extra money to pay off the next. Then use the extra money saved from the first to pay off the next card, and so on.

Q: Attn: Debt Consolidation Participants…Past and Present?
I have been enrolled in a debt consolidation program for about 3 years and have about one more year to go.

My question is on my credit report for each creditor that I have enrolled in the program it reads “payments managed thru a consumer counseling agency” (something along those lines) how long after I have finished the program will this notation remain on my report? Also how long after the program will I be able to get credit again?

FYI I do not need to know how a debt consolidation program works…as I said I have been in it for 3 yrs

I know people have there own opinions about it but I felt for my situation this was the best choice- so please do not give opinions about how I could have paid this debt myself

Please notice that I did not say how soon can I get a credit card I said CREDIT period….for anything specifically a house.

A: Good luck. I have heard after using some company to take care of your debt Banks will treat you as if you have filed bankruptcy.

Q: Debt Consolidation Program… How long after?
I have been enrolled in a debt consolidation program for about 3 years and have about one more year to go.

My question is on my credit report for each creditor that I have enrolled in the program it reads “payments managed thru a consumer counseling agency” (something along those lines) how long after I have finished the program will this notation remain on my report? Also how long after the program will I be able to get credit again?
FYI I do not need to know how a debt consolidation program works…as I said I have been in it for 3 yrs

I know people have there own opinions about it but I felt for my situation this was the best choice- so please do not give opinions about how I could have paid this debt myself
Please notice that I did not say how soon can I get a credit card I said CREDIT period….for anything specifically a house.

A: Let me just say ” good for you” you have stuck it out and your almost done!

You will have record of that for 7 years after your out of the program but regardless of what people say CCC does not hurt you as much as you think.

Getting credit again ? depends we have had clients get offers within 60 to 90 days. Generally if your with a good ccc they will have provided budget and finance counseling and you have taken the time to get out of debt we don’t see a as high of return clients as we see with arbitration and bankruptcy.

You may be able to do a really good credit restoration program in 2 to 3 years and remove most of that verbiage.

Be proud of yourself and dont get discouraged ! …….Remenber 8 out of 10 people enrolled in our services have read , preached and tried Dave Ramsey( who is a great by the way You may enjoy his book to keep you on the right path after your done ) and still ended up here a year later. Not everything will work for everybody.

Kourtnie
Prosperity Financial

Q: I want to consolidate my credit cards?
I have about $12,000 in unsecured debt from credit cards. I plan to pay two off soon, but that still leaves about $10,000. I am paying the minimums and have a good credit score (730), but my interest is so high I’ll never pay it off.

My first thought was to go to consumer credit counseling services but since I am not delinquent I don’t want to negatively affect my credit at this point. So, I thought I would go to my bank and get a loan to consolidate. Should I go for a personal loan or a consolidation loan (my bank is Chase)?

Also, two of the credit cards I carry are Chase credit cards, will this hurt my chances of getting a loan? Any help will be appreciated!! I am willing to cut corners, make some extra money etc. to pay off as much as I can. I have cut up my credit cards and not used any for over a year but I am still overwhelmed. Help please!
I am currently paying about $400 a month just minimums, interests rates all around 20%. If I can pay any less than this a month at lower interest it will help no?

A: You might consider transferring your balances to a 0% APR credit card. Although this won’t solve your problem completely, it will reduce your monthly minimums and help you avoid paying interest for up to 12 months. Over that period, you could knock down your balances significantly– then maybe even switch to another 0% APR credit card before the first intro period is over (until your debt is paid off completely). You can find a complete list of offers here:

http://www.asapcreditcard.com/0-apr.html

Although switching credit cards on a regular basis might have a slightly negative impact on your credit score– it’s only short-term. Eventually, after you pay down your debt and return to your normal spending habits– your credit score will return back to it’s original state. BIG DIFFERENCE: you won’t be in debt anymore!

Some people don’t advise using this method because it might be hard to resist spending more with your new credit cards. But if you’re disciplined– you could reduce your debts quicker and save a lot of money.

Hope this helps. GOOD LUCK!

Q: Assistance with car loans?
Well, 2 years ago I naively bought a friend a car who didn’t have one, he couldn’t pay it, so have 2 cars in my name. One person has been paying on it, but I am thinking about trying something, because my parents have offered their old car to me. If I were to sell both cars, I know I will have balances left on the car loans, but at least they will be less than they are now. Is it possible to either a) negotiate with the finance companies to get lower monthly payments or b) go into some sort of ‘debt consolidation’ plan with these “lesser” loans? I’d gotten the notion car loans were secured loans, and therefore organizations like Consumer Credit Counseling would not be able to help with them.

On another similar topic, is there any sort of financial assistance available to people in this sort of situation?

A: You would have to pay off the loans from the proceeds of sales on the cars you didn’t keep. If you don’t have enough equity you will need to bring other money. If you are getting a free car you can go get a car loan on that and use that to pay off the other loans.

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