Anyone been through debt counseling???

[RU482]

my wife and I both have extremely high credit card debt as a result of some bad descisions and reduced income. We are barely making the minimum payments (robbing Peter to pay Paul game). I've taken a second job to stay afloat, but it's working an extra 20 hrs a week is taking it's toll on everyone at my house. That said, I have good payment history, just terrible debt to income ratio and usage % of available credit. my credit score is in the mid 600's.

I am considering calling a debt counseling service. I'm just curious how they work and what they will do to my credit rating.

Anyone here used a service like this before?
Any advice?

 

[HappyPuppy]

It will screw your credit rating. Keep working the extra hours and get it paid off.

 

[RU482]

Originally posted by: HappyPuppy
It will screw your credit rating. Keep working the extra hours and get it paid off.

have you been through it? Or know anyone that has?

 

[alm99]

Originally posted by: redly1

Originally posted by: HappyPuppy
It will screw your credit rating. Keep working the extra hours and get it paid off.

have you been through it? Or know anyone that has?

check your PMs

 

[bonk102]

has anyone been through this? If so, what advice do you have? I'm thinking of doing this, as i have a lot of CC debt and i need to get "settled" so i can pay off my school loans and not be in debt for the next 15 years.

anyone got any advice?

 

[Krueger81]

yeah don't do it.

I made that mistake about a year ago. and well let's just say I am having trouble getting anything financed. I am now just getting back on my feet.

What they ended up doing is closing all of My CC accounts due to the Debtors Request. Meaning the Companies closed the accounts for me not the other way around.

It sucked but oh well. I am back on track now and it can only get better.

Phil

 

[bonk102]

when they closed the accounts, what happened then? i'm honestly clueless about this whole process

 

[fredtam]

The last thing you want on your credit report for the next seven years is "this account included in credit counseling". Cancel your cards. Keep working. Talk to your creditors. They will lower intrest rates and such. Threaten a BK.

 

[bonk102]

I plan on canceling my cards the end of this month, but Visa refuses to lower my interest rate, which is currently 25%!!!!!

i'm hoping that Discover will take it over, cuz it's only 9% right now, but we'll see

 

[Sluggo]

Total Money Makeover by Dave Ramsey.

Pretty much a step by step guide to getting on a budget and getting your bills paid off.

I listen to him on the radio, and went to see him live. Basically common sense advice, but still good advice.

 

[DaveSimmons]

FYI a lot of the "non-profit" debt consolidation companies are scams, they are fronts for for-profit companies that make the actual loans with very high interest and fees.

If you consider using any service, check the BBB and your state's Attorney General's office to see what kind of complaint history the company has.