Recommendations for Debt Management Programs

iVillage Member
Registered: 06-15-2007
Recommendations for Debt Management Programs
4
Fri, 02-15-2013 - 12:18pm

Hello all - I was around years ago, things were pretty good for quite a while, and somehow, someway, I've found myself getting buried under credit card payments AGAIN (long story for another time).  My quick question is this:  Do any of you lovely people have experience with debt management programs?  I contacted one, Care One Credit, and it seems like they can help.  I'm afraid of being taken for a scam.  I've done some reasearch online and they seem reputable, but I have a hard time trusting everything I see online LOL.  Any thoughts, recommendations or advice?

 
iVillage Member
Registered: 02-19-2013
Tue, 02-19-2013 - 1:59pm

I know this is late :/ but for futher eductation on people that may stumble upon this conversation. There are multiple debt management programs, like debt settlement, debt consolidation, to name a few. I like you was in debt, I had about 17k in credit card debt. Yeah give a 25 year some credit cards and watch him go crazy. Anyways I searched the internet and like you was skeptical because you hear horror stories about fly by night companies. I went with mydebtkey.com and ended up use a debt consolidation program. I chose them because I am in Florida and I found them in Google places. Care One is good from what I have seen aswell. Anyways I was able to consolidate my credit card debts into one, which helped me pay them off much faster. I would reccomend My Debt Key or any company who will provide you a free consulation without the hassle.

Hope this helps,

Jason

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Tue, 02-19-2013 - 2:58pm

In 2004 I began with Consumer Credit Counseling Services of New England, which was later acquired by Money Management International.  I found both CCCS-NE and MMI to be very easy to deal with.  They were very professional and there was never any high-pressure anything. 

It was a debt *management* program, not debt settlement, to be clear.  I paid off 100% of what I owed.  CCCS negotiated with my credit card companies to lower the interest rates so I could finally get the principal paid off.  It was a 5-year program where they charged me $35 a month and debited my account every month on the day I chose (e.g. I got paid on the first day of every month so I had them debit my bank account on the third day of each month).  All my debts went into it, except for one Visa and my good old-fashioned pay-in-full-every-month Amex.  I could pay it off early at any time and with no penalty.  I recommended them to my sister a few years ago and I think she is using them. 

Follow up story is that I paid off the full amount in 2008, in 4 years, not 5, and I was still able to take out an auto loan on a new car in 2006 and get my first mortgage and a HELOC from my credit union in 2005.  The DMP didn't prevent me from taking out secured debt, it just prevented me from taking out any more unsecured debt.  To this day the only credit cards I use are that same Visa and Amex that I kept out from the DMP, and I pay off everything every month.  Oh, and my credit rating is outstanding, and I refinanced my mortgage last year with no issues at all related to having been on a DMP.

Good luck.

iVillage Member
Registered: 06-15-2007
Tue, 02-19-2013 - 8:12pm

Thank you both so much, I'll check into both programs.  I originally wanted a debt consolidation loan (i.e. roll all CC debt into one loan, lower interest rate and 1 payment a month instead of a dozen).  I can't seem to find any loan companies that will provide an unsecured loan (my credit is pretty good, not great though).  Anyway, to clarify, yes I'm looking at debt management, where I will pay off 100%.  CareOne says they negotiate with cc companies for lower interest rates, I will make one payment per month and be paid of in 43 months (sooner if I can pay extra).  They charge $50 a month for the service.  I'll look into the other companies you both recommended. Thanks so much for the replies. Laughing

 
Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Wed, 02-20-2013 - 11:11am

Let us know what you decide to do!