Started program with Take Charge America

iVillage Member
Registered: 02-19-2004
Started program with Take Charge America
10
Tue, 10-18-2005 - 10:50pm

Hi all. I haven't been on the board in a few weeks. I've been so busy!

I started on a debt management program with Take Charge America today to handle a little of my "miscellaneous" debt, so that I can work on getting my credit rating back up so I can refinance my student loans in a year or two.

Have any of you guys had success with debt management plans? My counselor told me that it would have no negative effect on my credit score, that it will only make it go up with good payment history. And all my other crappy debt will be paid off in a just a few years!

Any input?

iVillage Member
Registered: 11-07-1999
Wed, 10-19-2005 - 12:38pm

Hi there, I mostly lurk here, but have gained so much info from others, I thought I would tell you about my exp. with ccc. I did cc in 2001 and back then I was told by many people that it shows on your report just as a br would. A morgage man told me that it does and even with doing cc they still view it as a br and the same rules apply when buying a house. Please make sure you read all the fine print in your "contract". I found out after the fact that i was being charged a "donation fee" of 7.00 per account I had set up, and with 8 accounts, that was 56.00 a month being thrown away. When I confronted them, they said it was in the contract and that I had to check the decline box for the donation before I signed it and mailed it back to them. It was printed so lightly and small on the back of the contract, you had to hold it up to light to even see it. The company was ameridebt and I ended up filing br in 2002. Since then I have recieved notice in the mail that there is a class action suit against them for (you guessed it) fraudulant charges. I am a part of it and if I get reimbursed, I will get back 500.00. And I have pulled my report and there is nothing on there about the cc. So ( in all of my ramblings) I am not sure if it had any effect, or if it did if my br over rode it.? But you know what just hit me....Is cc viewed in the same way as debt management? Or is it different?

Anggi

iVillage Member
Registered: 03-27-2003
Wed, 10-19-2005 - 1:29pm

I have found that using a DMP has a somewhat negative effect on your credit rating, in some surprising ways. Years ago I went with CCCS, and though I completed the program, it was impossible to even get a gas cc later. I got "back on my feet" and started a new collection of CCs (my bad). When we decided that I would be a SAHM, and things started getting tight, I went to another DMP and did it for a year until we got things under control. I opted out of the program, and a few months later went to lease my new minivan (hate 'em but we outgrew my midsize SUV with two carseats and a 15yo!) and the first thing the finance guy said was, "You were with X?", and I said, "Yes, but it was right after I quit my job and we were just kind of re-organizing our finances.". I still got the car, but while I intended to buy, we ended up leasing it (no financing--see how this went?).

And, I also get LOTS of cc apps for secured cards, which I just will not do. Hand to God, I WILL NEVER HAVE ANOTHER CREDIT CARD! Well, I will keep the one with the $500 limit, and that's it!

See what your options are on getting out if you don't want to be in DMP. Every "counselor" (salesperson) I have ever dealt with in a DMP will say that it doesn't effect your credit rating, but in the end, it really does. Personally, I will never do it again. I have learned here that I can call cc cos and try to work on getting the interest rates lowered myself without having to pay someone else to do it. Also, creditors DO NOT have to accept your arrangement, so that can work against you too.

Just my opinion!

Kathy

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iVillage Member
Registered: 01-21-2004
Wed, 10-19-2005 - 3:55pm

Just thought I'd post my experience with CCCS. I actually had a very positive experience. I used American Debt Management Services (?). I think that's their name, they're located in Long Island,NY if you want to look them up...

Anyway, I was with them for 5 long years. At first my then husband and I were trying to buy a house, had a ton of CC debt between us (in our own names), so we started the program. Everything went smoothly with them talking to our creditors, negotiating % rates, and sending them payments. Even when I was going through my divorce, splitting my XH and I into 2 separate accounts was no problem.

My credit wasn't affected at all. I was able to buy a new car, lease an apartment, get a personal loan, all in that 5 years. And I still have 1 credit card for emergencies.

I never thought I'd get out of CC debt. I had 20K in my own name to get rid of. I finished paying it off 1/05. My credit scores are in the 760-780 range.

If you have any questions, let me know, I'd be happy to help.

Susan

iVillage Member
Registered: 05-02-2005
Wed, 10-19-2005 - 8:58pm

Congratulations on taking that tremendous step. I know it's tough, because I've done it, and am doing it still. I even use Take Charge America. We started with them a year ago this past July. We couldn't be happier. They stay right on top of things, and keep us posted every step of the way.

Good Luck!

iVillage Member
Registered: 02-19-2004
Wed, 10-19-2005 - 9:52pm

I'm glad to hear you have been having a positive experience with Take Charge. That always helps to have feedback on a company. I think I'm taking a positive step. I had to get my crappy debt organized in some way in order to get my credit score up, so I hope I'm doing it the best way.

Thanks so much for the input everone! :)

Angelpie41

iVillage Member
Registered: 07-10-2001
Thu, 10-20-2005 - 12:44pm

Question:

I understand that the creditors accept less than full payment in these deals with the debt management companies. Is the amount forgiven reported as taxable income to the debtor?

If so, I would watch that carefully....that could be a huge tax bill...

In my case that is why I when Chap. 11. The forgiven amounts are not taxable income in BKY.




Edited 10/20/2005 3:52 pm ET by az_tbone
iVillage Member
Registered: 05-02-2005
Thu, 10-20-2005 - 7:46pm
Actually, you are still responsible for the actual debt. It's the interest rate that is reduced.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Fri, 10-21-2005 - 2:53am

Just wanted to clarify some items that I've read here in this thread.

All my best,
Danni

iVillage Member
Registered: 02-19-2004
Fri, 10-21-2005 - 11:34pm

That was very helpful, Danni! Very informative. I get so confused about my debt and the best ways to handle it and it's always so great for me to be able to get on this board and have so many wonderful ladies to bounce ideas off of!

Thanks again!
Angelpie41

iVillage Member
Registered: 03-27-2003
Sun, 10-23-2005 - 11:20am

We had a wonderful experience with Consumer Credit Counseling. It did not show on our credit score at all, this was about 10 years ago though.

Dana