What about Debt Management firms

iVillage Member
Registered: 10-18-2008
What about Debt Management firms
5
Sat, 10-18-2008 - 8:01pm

...that promise to help you get out of debt? Hi, I'm a new member to iVillage and I have some debt that I would like some advice on. While I can make the minimum payments with my paychecks and still have enough money to pay rent and the other necessities, I would like to pay off my credit cards quicker. I have contacted a debt management company and they want me to sign a "Power of Attorney" form before they start talking to my creditors and setting up payments through them for my accounts.


I had my parents read the form and they say that it's not a good deal because the last paragraph basically states that once I sign the "Power of Attorney" form I have to comply with everything they present to me, and if I don't I put myself 'at risk.' (My mom, who used to be a Community Leader on this board years ago, said she's never heard of a debt managment company that requires you to sign a "Power of Attorney" form. She suggested that I join this group.)


Is there a general website for debt management companies that a

iVillage Member
Registered: 11-17-2007
Sat, 10-18-2008 - 8:36pm

The best advice I can give you Is one listen to your mom. Second do it yourself IF you are paying your bills on time and have money for food and the roof over your head YOU do not need these guys. If you are just wanting to pay ahead then start snowflaking your bills Every extra dollar you can send them a month is 2.00 saved.


To get snowflake money start using coupons at the supermarket. Men don't like to do that but it is a great thing to do. You can save at much as 10 percent on your food a week Send that coupon money

iVillage Member
Registered: 07-05-2006
Sat, 10-18-2008 - 10:09pm

I agree. I have gone through a debt management company and had nothing but bad come from it. This company negotiated with the credit cards for a reduced payoff. It's much different than consolidation I believe, because they had me stop paying the credit cards.

iVillage Member
Registered: 10-07-2008
Tue, 10-21-2008 - 11:54pm

Sounds like a debt settlment company.

iVillage Member
Registered: 04-13-2009
Mon, 04-13-2009 - 12:17pm

Hello,


I just got down reading your article and I was wondering how you are today?


Here is my situation: Recently separated from my husband and I have a 4 year old daughter that lives with me full-time. In the past 4 years I managed to rack up about $50,000 in credit card debts. I live paycheck to paycheck now and I am scared to death that I won't be able to support me and my daughter. I own a home with my husband that he now lives in with a room mate. I felt better and safer for my daughter and I to leave the house and get an apartment. I have talk to several different credit card debt consolidation firms and I have backed out of two that I was at the last steps of enrolling in their programs. I would appreciate any advice you may have. I am currently on time with my payments, sometimes paying a little over the minimum but not much and not often enough.


Thanks

iVillage Member
Registered: 10-16-2007
Mon, 04-13-2009 - 7:50pm
I currently am looking into a Debt Management Plan thru CCCS. My girlfriend has been doing it since Sept. and so far she has paid off about $6000 of her debt, she checked her credit score the other day and it actually went up two points from where it was a year ago. There are certain companies out there that aren't good and are a scam. I trust CCCS, my sister has used them, my girlfriend and Suze Orman has the listing on her site and has recommended them before to people.
I have never heard of having to sign a "Power of Attorney" I wouldn't do that. SO far all I have had to do is send over all of my most current statements showing the balances etc., and that's it. They are going to take care of the rest. Good Luck.
Here is their website www.moneymanagement.org
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