Has anyone ever enrolled in a Credit Counseling program or Debt Relief program?

YorkieFan

I'm just looking for some experiences and/or advice. I'm not finding anything positive about any of these debt relief programs (understandably so!). We have had a few credit cards who recently jacked their interest rates for no reason in the past few months and now we are struggling to make the minimum payments and they don't seem to want to work with us at this point. I've never been late on payments and it's just killing me. Anyone have any reasonable advice. We're doing a lot of research on options right now, but I'm not finding much I'm comfortable with. Thanks!

JenLynn11

I dont have time to type a lot about them but check out careone credit...we use them and it was a last resort before consolidation and bankruptcy...HTH

lexigrl

We use Care One as well...and have had a good experience with them

CA2006

DH and I both used MMI (Money Management International). www.moneymanagement.org  We had a recommendation then DH used them.  When he had paid off his debt, I signed up.  They aren't overbearing or annoying and they got the job done.  Best of all, it didn't show up on our credit.  Feel free to PM me if you want more info.  GL!

SuperCuteBenz

I have never heard anything good about any of them. Could you transfer to a 0% interest (since it would be a balance transfer) card and then pay it off?

We get offers for these types of cards in the mail 2-3x a week. DH had about $4000 on one card, and we transfered to a 0% interest card, and paid it off it about 13 months. You have to be careful with budgeting though, because I belive they charge you back interest if it isn't paid off in time. Or maybe the interest rate is just sky high. I can't remember.

KatieRL1979

Avoid them, a lot of them are scams and make you give them money up front - which they don't give to your lenders fast enough so you'll end up essentially double paying the first few times so you don't fall behind and take on even more penalties.

Call your creditors and find out why your rates were increased and if you don't get a straight answer just keep asking to speak to that persons supervisor.  Tell them you always pay on time and have a good history so this is not acceptable.  If they don't budge, tell them you will not be using this account any longer and will close it upon paying off your balance.

Make a list of all your debts and start paying them off one at a time.  Get into a credit union if you can and get a credit card from them, they don't play those kind of rate games.

 

CA2006

KatieWill2006:

Avoid them, a lot of them are scams and make you give them money up front - which they don't give to your lenders fast enough so you'll end up essentially double paying the first few times so you don't fall behind and take on even more penalties.

This is true of a lot of debt management "companies".  But I can tell you that MMI didn't make me pay anything up front and they were very clear about their $35 per month administrative fee, which is reasonable.  They have relatinships with the creditors and negotiated my interest rates way down with the promise that nothing more would be charged.  You can keep a credit card out of the program for emergencies too, if you'd like.  They are different from the money crazed debt management scammers and if you really need help you aren't getting from your lenders, I woudln't hesitate to recommend them.

heatherNsteve07

I use money managment international right now and so far so good! They always make the payments and there are never any extra hidden fees. My aunt used them and within the five years all her card were paid off!

kellsdanz

I used InCharge Debt solutions.  They were great and had no hidden fees or scams.  There was an admin fee (maybe $35 a month) but they were upfront about it.  They lowered my interest rates with all 3 credit cards and they did not show up on my credit report that I was using them.  I was done paying my debt off in 5yrs.  I totally recommend them.

JenLynn11

CA2006:

KatieWill2006:

Avoid them, a lot of them are scams and make you give them money up front - which they don't give to your lenders fast enough so you'll end up essentially double paying the first few times so you don't fall behind and take on even more penalties.

This is true of a lot of debt management "companies".  But I can tell you that MMI didn't make me pay anything up front and they were very clear about their $35 per month administrative fee, which is reasonable.  They have relatinships with the creditors and negotiated my interest rates way down with the promise that nothing more would be charged.  You can keep a credit card out of the program for emergencies too, if you'd like.  They are different from the money crazed debt management scammers and if you really need help you aren't getting from your lenders, I woudln't hesitate to recommend them.

 this is what I didnt have time to type for CareONe

capitalB

Not all of them are scams!! Check out ClearPoint Credit Counseling - they are a nonprofit organization with a A+ rating from the Better Business Bureau. We are currently using them to pay off our debt and have had a great experience.

https://www.clearpointcreditcounselingsolutions.org/

MsKellDel

capitalB:

Not all of them are scams!! Check out ClearPoint Credit Counseling - they are a nonprofit organization with a A+ rating from the Better Business Bureau. We are currently using them to pay off our debt and have had a great experience.

https://www.clearpointcreditcounselingsolutions.org/

we are also using them

Angel037

How long ago did they raise the rates? Usually when they do, you can opt out of the new terms. It usually requires you to no longer use the card, however, but you can keep your old interest rate. I did this when my rate doubled.