Cancelling debt management company
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Cancelling debt management company
| Mon, 08-09-2004 - 11:59pm |
Hello to all of you. Wondering what happens when you cancel debt management company and start paying creditors on your own. Has anyone done this?

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Consider it the same as BK!...Find other ways...Trim the money "fat",second job(s), sell stuff on e-bay, borrow from relatives.
CCCS takes one payment out on the first of the month (I get auto-payment on the last day of the month). That's what I wanted, they could have taken it by check but I prefer to write as few as possible.
The downside is that you probably can't acquire more debt, unless maybe secured debt like a car loan. But if you're in such dire straits, you probably wouldn't qualify for much credit anyway.
As for the advice of the poster before me - "Trim the money "fat",second job(s), sell stuff on e-bay, borrow from relatives" - DH and I have done all that (except eBay - we have nothing to sell, unless you count our dining room table, I suppose we could all eat off the floor), and none of it brings your credit rates down from loan-shark levels. Unless you can dig in at the principal, you will never get out of debt.
Kelly
Everyone needs to make their own choices, and CCCS is often the best choice for many. No one needs to be discouraging people from seeking help, and the best help comes from a certified financial counselor.
Good luck.
This is what I find troubling about someone else handling YOUR finanaces...You think not being able to get additional credit (which is the main reason your in the program to begin with) is a "downside"...Seems by this statement that the company has not really helped their customers...They have not dealt with the "illness" but simply treated the "symptom"...I knew when I signed the form to apply for that low rate CC that if I missed a payment my % would got to "loan-shark" levels of 24%...I agreed to it and agreed to pay it back by signing the dotted line...guess I was one of those foolish enough to stick to the agreement.
Edited 9/20/2004 1:39 am ET ET by sipote_1
Why? The OP seemed to think she could do it on her own...some can't, some can...Those who can't should make an all out effort to curve their lifestyles to "pay it themselves" and use these services as a last resort.
"I do not pay attention to any statements regarding CCCS and credit scores, etc, unless it comes from a true expert in the field."
Which I am not...simply stating my opinion from experience...we all have them.
"No one needs to be discouraging people from seeking help"
True...But I simply pointed out what other "extreme" measures to take prior to using these servies.
"the best help comes from a certified financial counselor."
Yes...for those that can afford a true CFP...but if your referring to the credit services companies, i dought many of them employ official CFPs.
Are you getting the point? I can work my way out of debt on my own (yep, I'm the one who made the decision to use CCCS, no one put a gun to my head). I've reduced the principal balance by $1500 in the past two months, whereas I would have reduced the principal by ZERO without CCCS and paid $1500 in interest.
If you come here only to tell people that there is one way to do it, and it's yours, then you've already done that. Enough already. Your way is not the only way.
Kelly
Good Luck, Sunshine :-)
I've never said it was...I have mentioned that prior to using such services, the poster should seek what others may consider "radical" or "extreme" changes in ones behavior to pay off what is owed...This means changings one's lifestyle (which I don't think many CCCS type companies do as mention on this and other threads throughout the Money boards)and which many people are hesitant to do...such as second jobs, ebay, cost cutting, etc...Perhaps by feeling the pain and hard work it takes to do it oneself, it will stop the person from committing the same error.
I sometimes I avoid posting on many of these debts, because CCCS and BK are advocated so much, and I could go on and on about how people should avoid them...but then it's just my opinion.
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