Consumer Debt And Credit Counseling

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

WWLP Springfield, MA interviews Christopher Viale, President and CEO of Cambridge Credit Counseling Corp., about a new study which examines how ...

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

Price: $24.95

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!

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

I wish you luck!

2006-10-09 12:05:59 by Blk Angel

Price: $24.95

I have about 3,000 in credit card debt from Citi and Discover. Both have been charged off so the damage is already done and I am 20 years old and I had to use this to pay for college and I wanted to try and make a small payment plan so I could defintley afford the payment but both collection agencies are asking for over 100 each month and I can't really afford that right now. I filled out this online application for Consumer Credit Counseling Service and they set up a plan where I pay 85 each month and out of that 15 goes to Consumer Credit Counseling Service and there also a fire deposit amount of 120$ which includes a file setup fee. Should I continue to do this or try and talk with the collection agencies about lowering the monthly payments or find another Service? I just want something that I can afford. Please help. Thank you

hello - sometimes the name Consumer Credit Counseling Service which is a non profit service can be confused with other debt payment services that are for profit - i suggest you go to www.nfcc.org/ National Foundation for Credit Counseling to see if the service that you are using is accredited. CCCS can not make a creditor do anything but they have positive relationships with many creditors that may benefit you - collection agencies are difficult to work with - it may be that the original creditor will take back the debt from the collection agency after some payments are made - maybe - maybe not - true CCCS will want you to do what is in your best interest - be sure that you are working with a true CCCS!

2008-07-03 20:55:54 by JJ1231

Any information would be great. I heard both good and bad about CCCS. Again any info would be great??? I am not late as of yet or applied with anyone but will need to soon just barely hanging on.

Consumer Credit Counseling Services (CCCS) can negotiate much lower payments and interest rates....They DO NOT negotiate settlements...just reduced interest and payments.

They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you're enrolled in the CCCS debt management program.... Otherwise, it can be a very good way to deal with your debt.

Please note that CCCS cannot perform miracles in situations where there is an overwhelming level of debt relative to your income/assets. Sometimes Chapter 7 bankruptcy is the only solution to overwhelming debt. Don't let anyone smear or guilt-trip you for making this decision if you have to...especially all the people who like to quote Dave Ramsey who think that BK should always be avoided....this is ridiculous advise that only benefits credit card companies...Of course BK should be avoided if at all possible...but sometimes it is needed. Do what's best for you and your family. Corporate America uses BK all the time and no one slams them.

Just remember that you can only file for Chapter 7 once every eight years....so if you file, you won't be able to discharge your debts again for eight years, even if you find yourself in a worse financial situation..
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What you need to know about debt settlement firms:

Your credit card companies are not going to offer you settlements like 50%, for example, if you are current (not behind) on your payments. Basically, the only way you can get into a position to negotiate settlements is to deliberately let your accounts go into default. This is exactly what debt settlement firms do....They take a monthly amount from you and use that to build a “settlement” account, which will go towards paying the “settlement” at a certain date. Your creditors will deliberately not be paid. They will not be happy about this.

If you are current on your accounts, this process will ruin your credit rating as your accounts will all go into default. Your creditors are under no obligation whatsoever to accept settlements from any debt settlement firm you hire. Their response might be to serve you papers and take you to court.

You don’t have to pay any firm to attempt settlements. You can try this own your own. Just remember, if you currently have good credit, this process will ruin your credit and there’s no guarantee that your creditors will accept settlements. If you are currently in default on your credit cards, you can make your own settlement offers. You don’t need to pay anyone to do this for you.

2008-09-02 13:56:13 by lkkindrick3