Consumer Credit Card Help Through Credit Counseling Debt

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!

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.

2007-02-20 22:27:47 by Holly C

Consolidate credit card debt by taking out a personal loan or doing a credit card balance transfer. Consolidate credit card debt with tips from a ...

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!

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.

2007-02-20 22:28:04 by Holly C

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?

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

2007-05-10 04:29:35 by blackbinfox

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?

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!

2008-07-11 10:22:16 by Lyn93

Briefly here is our situation:
-our daughter had some medical problems & we got behind
-through the Hope Line, our mortgages are caught up
-we completed Consumer Credit Counseling classes and are currently enrolled in the debt management program. Several credit cards have been very difficult about accepting the proposals & have consequently dropped our credit scores dramatically.
-our scores range in the low to mid 400's
-we have a 1st with Citibank for around $165,000 at 5.75% and a 2nd with Bank of America for around $54,000 at 9.95%. The payment on our first (insurance & taxes are escrowed- includes PMI) is $1710 and the payment on the second is $528.
-Together my husband and I bring in a little over $4050 a month
-the purchase price on our home was $171,000 and it is now worth around $250,000 - $270,000.

I need to combine both mortgages & have a lower pymt. I realize the rate will be higher.

I need to combine the first & second to get a lower

Perhaps you may want to start by getting financially educated. How $$ works. Take it for some one that's being there, a different loan may not be the solution. It only will transfers your headaches from one place to another, at a higher interest rate.

Do you know what if you divide 72 among the interest you pay, you can find out how many times are you doubling some one's money (the lender).

You can get off debt on your own, make payment arrangements, tight budget, increase cash flow and still have extra to make sure you meet your goals, if you take just a few hrs. to learn how.

Citinet offers free financial education, no investment, no buy books cds or none of that bs. just straight forward education in how r u to handle your situation to your advantage. I talk by personal experience.

They'll expose for you the loan programs how they work how they make money on you and what can you do to choose the best, on your own. What can you do with your fico they way it is. They do this open to the public, they have offices across the us.

2007-08-17 09:15:41 by beachboudeccea