Consumer Credit Counseling

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I have posted similiar question about this but now that I went to CCCS for advice this is what they said. I'm overextended, duh? I thought that was a no brainer! I have 29000 in debt and the counselour stated it would cost me 772 a month to pay off my debt which would be at 10% for 5 years. I brought in a debt consilidation plan for a loan for $25000 with no collateral needed at 8.9% for 5 years and the counselour shunned at it and said I had no chance at that loan? She did not know how I was living within my means...I told her I had overtime and take surveys on the internet and use Bank of Americas Keep the Change program. She did not comment on those things but said I could use food source and drive 1 hour to a Church to get food for $50 a month to save on food, but no milk, OJ, bread is provided? I have a WalMart across the street and I save gas that way. It just seemed she thought I was a deliquent consumer by I have a good credit history and pay bills on time where else can I go?

Best Answer

No. You should do this on your own. Credit counseling is, for most people, a very bad experience. I've heard many horror stories from my clients and not one of them would do it again. Also, it's a fact that it looks worse to be in credit counseling than to have filed for BK. Sit down with your bills and come up with a plan. Scale back all unnecessary expenses, get a 2nd job, get a roommate, only eat things you cook at home and figure out how to make it work. People have been in worse spots than you and have come out ok. You can do this. Good luck!

I have posted similiar question about this but now that I went to CCCS for advice this is what they said. I'm overextended, duh? I thought that was a no brainer! I have 29000 in debt and the counselour stated it would cost me 772 a month to pay off my debt which would be at 10% for 5 years. I brought in a debt consilidation plan for a loan for $25000 with no collateral needed at 8.9% for 5 years and the counselour shunned at it and said I had no chance at that loan? She did not know how I was living within my means...I told her I had overtime and take surveys on the internet and use Bank of Americas Keep the Change program. She did not comment on those things but said I could use food source and drive 1 hour to a Church to get food for $50 a month to save on food, but no milk, OJ, bread is provided? I have a WalMart across the street and I save gas that way. It just seemed she thought I was a deliquent consumer by I have a good credit history and pay bills on time where else can I go?

Best Answer

No. You should do this on your own. Credit counseling is, for most people, a very bad experience. I've heard many horror stories from my clients and not one of them would do it again. Also, it's a fact that it looks worse to be in credit counseling than to have filed for BK. Sit down with your bills and come up with a plan. Scale back all unnecessary expenses, get a 2nd job, get a roommate, only eat things you cook at home and figure out how to make it work. People have been in worse spots than you and have come out ok. You can do this. Good luck!

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!

Best Answer

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.

I want to go to college soon for a degree program. However, my credit card debt is getting the best of me, so I have been considering contacting a consumer credit counseling agency. Will student loan agencies (federal & private) not consider an application with credit counseling? How do I find out how this decision could affect my school?

Best Answer

From what I've been told those programs do nothing that you can't do yourself by contacting your creditors & working out a deal yourself. Also, it's about the same as filing bankraptcy or worse on your credit score. And they charge you so you have MORE debt!

I own a home. It's worth approx $85,000 - I owe that much on it. I have approximately $35,000 in debt. $6,000 is in back taxes. (I only made $18,000 last year?) If I choose to use consumer credit counseling, does anyone know if it really helps? Or is it just a flim-flam operation?

Best Answer

Hi daisylane, CCC is really not the way to go, unless you want to have your credit severely affected. In my business I have personally seen hundreds of peoples credit hashed by CC outfits. The best way is to negotiate with your creditors yourself. The bottom line is, if you utilize the services of a CCC service, they will negotiate on your behalf. They can have your interest rate lowered, minimum payment reduced, or spread out the terms longer if it's on a fixed period loan. However, even though you have negotiated with your creditors, typically they will report you as late. Here's why; even though you are still paying them something, the amount or terms are not the same when they agreed to extend the credit to you in the beginning. If you can get it in writing that they are willing to the new proposed terms without showing you late, make sure you get it. The documentation will save your bacon in the end. Also, telling you this as a mortgage lender; you will be hard pressed to refinance or buy a home if you are showing an ongoing relationship with a CCC. This is almost as bad as filing bankruptcy. It shows the inability to manage your debt load for whatever reason. Good Luck ~Trey