Looking for advice on debt

iVillage Member
Registered: 02-04-2010
Looking for advice on debt
9
Thu, 02-04-2010 - 11:56am

Hello, everyone I am a newbie here, but I am old enough to know better about debt.

iVillage Member
Registered: 08-04-2008
Thu, 02-04-2010 - 12:41pm

Casey -


What the CC Counseling firms promise and what they deliver are two different things.




iVillage Member
Registered: 11-17-2007
Thu, 02-04-2010 - 10:12pm

Like Marie said doing it your self is the best way. I am a big believer in doing things yourself. One you learn more as you go along. That is something you will not have going with a company.


Second your payments will not go down with a company if you do it yourself with a few extra dollars paid to a bill your payments will go down ( less interest)

iVillage Member
Registered: 07-05-2006
Fri, 02-05-2010 - 8:39am

Just like Marie said, the main problem with the CC counseling services is that they are charging a fee for something that can be done by yourself. I went through an agency called Credit Solutions and I paid a certain percentage of my debt so that they could deal with the CC companies and work out some kind of settlement deals with them. What ended up happening is that 1 credit card sued me because I didn't have enough money to pay them when they decided to settle with me. There was nothing that the Counseling service could do for me. I then took out 2 of my remaining 3 accounts with them and settled on my own with both of those. The last account was settled with the counseling service 3 years later after I received a tax return. It basically turned into a mess and the problem was that I didn't educate myself on what was going to happen to me.

If I could go back and do it all over again, I would do everything possible to educate myself on all of my options. First of all, I probably would have qualified for bankruptcy and although no one wants to consider doing that, if I would have put the money I paid into the counseling service into a lawyer and declared BK, I would have been done with the whole thing 4 years ago instead of dragging it out. Of course, then I might not have learned all the valuable lessons and who knows...I could have gotten myself right back into debt.

Basically, do yourself a favor and at least educate yourself on how to deal with credit card companies. If the counseling service isn't charging too much, then it might work for you. But you have to be aware of the process. Also, learn about what put you into the debt that you are dealing with in the first place. I learned that I am a complete 'Want it now' type of spender. I've had to teach myself to wait and think before making a purchase. If you don't start analyzing how you got where you are, then it's very possible to just go right back into debt. I had to do it to myself 3 times before I learned how to budget and handle my money.

Good luck!!!!

iVillage Member
Registered: 02-04-2010
Fri, 02-05-2010 - 1:30pm

Thanks for the replies, I have taken the advice to heart.

iVillage Member
Registered: 10-01-2008
Fri, 02-05-2010 - 1:51pm

You've got the right attitude Casey.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 02-04-2010
Mon, 02-08-2010 - 10:22am

Hi, since my kids are grown and 30 and 32 years old, I have been living in the empty nest with rescue dogs....an old Lab and a young Lab Chi mix.

iVillage Member
Registered: 10-01-2008
Mon, 02-08-2010 - 11:21am

Hi Casey,


I hope you find comfort in the Debt Support Group.

Norma


"Patience is the best remedy for every trouble"- Plautus


Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Mon, 02-08-2010 - 1:19pm

Years ago I had to clean up credit to get a mortgage. Lender #1 laughed obnoxiously and said we should declare bankruptcy. (I was naive but he was SERIOUSLY rude). I poured myself into DIY and six months later the next lender said he'd never seen a credit report so clean in his life and he actually offered me a job. (I declined). For perspective, I was dumb enough to apply for a mortgage with a total trainwreck of credit and I still managed to clean it up. The time period was literally six months and our debt was half as much as our income at the time.

On the other hand, I put my mom's accounts in credit counseling. A few months later, we found out that even though they were one of the 'GOOD' companies, they hadn't paid any of her bills and basically said "what are you going to do about it?" We filed a complaint but the money was gone and the damage was done. This place checked out with the BBB and everything! I will NEVER go that route again.

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FLINGING DEBT:
Sarah
iVillage Member
Registered: 12-10-2009
Mon, 02-08-2010 - 9:42pm
I am glad you decided not to do the counseling , I looked into and i was really hopeful . I gathered all my bills and met with a lady at CCCs a local non profit. She told me that she could not help me and suggested I file for bankruptcy. I was really shocked at that I just felt like there had to be way out of this mess I was in If I have to file for Bk I will , if I just can't do it anymore. I thanked her for her time and left, This was in the fall last year, I came home totally defeated and started just looking up debt on the internet, this was one of the first sites I found. I am not able to be as active on the board as I would like, But I just wanted to say hi and let you know there is a lot of pretty cool stuff people are doing to get out of debt. keep reading and you will be inspired. It really helps to know you are not alone. Good luck with your efforts, I really think you can do this without their help. ( or lack of help I should say)