Credit counseling/Consolidation

I was just wondering if anyone has ever done one of the programs for card consolidation or non-profit programs, not consolidating it against equity in the home. Most specifically I would like to know if you went but decided not to do it (I have heard the payment is no lower, sometimes more), if you are doing it or did it and if it was worthwhile and how long it really takes to pay them off. I realize this is sort of a sensitive issue. If anyone cares to reply, but not here, you can email me.

Consolidation loans, though I have never had one, can be worse than the problem they are meant to fix - from what I have read. I read a lot of finance and investing type books, but I am no expert. (By way of demonstrating what I have learned from reading, though...I will say that we have no car payments and RARELY ever carry a credit card balance. We are saving for retirement, have college funds set up for both girls and have an emergency fund for a rainy day. It hasn't been easy and we still mess up at times, but we've managed to make some serious headway in managing our own finances). Again, I'm no expert, but I know enough to know where to point you.

You will have to do some work, here, but it will pay off, literally, in the long run. Read anything by Larry Burkett or Dave Ramsey. Both of them offer financial advice from a Christian standpoint. Call your library and see what they have and/or what they can get for you.

If you can't find anything locally, don't go out any buy anything. I'll send you my copy of Dave's book.

Good luck and email me if you want to chat more about this.

Carla, Thank you for your reply. I do think I just read something by one of the people you named yesterday. It popped up under a search for 'relief from credit card debt' and I do know it made a reference to being a Christian site. You are in an enviable position. There was a time when we were sitting on top of stocks and bonds, IRA and 401K, not to mention a nice savings account. Unfotunately my husband was permanantly laid off from three different jobs in the eleven years we have been together. He did work temporary positions during those times but of course they don't offer benefits and paying for you own can quickly deplete your assets.
I was really hoping someone would have done a debt consolidation, not a consolidation loan and could tell me about it. Maybe it is just too delicate of a subject. It is obvious the subject was of interest to many. I know credit card debt is skyrocketing. Maybe your info will help others too. Thanks!!

Badseed

I agree with Smilin, you're still in debt and possibly with more interest too.

I had a bank debt after college (who doesn't) and to cut a long story short, I looked into getting a loan to get me back on my feet and pay off the debts accrued over the 3 years at college (even though I worked the time I was at college it was no where near a decent wage). I would have had to pay half as much again in interest by the time I paid it all back.

It took a while to sort out the mess I was in (as I couldn't work for 2 months straight after college) but I only had to pay off the debts I had and not any extra to someone else making money out of other peoples misery.

Hi Baa, It is just an ugly merry go round we get stuck on huh? LOL At least you have an education to show for it. :)
I really don't want a loan. I am thinking more along the lines of the non-profit organizations, that work with your debtors to reduce/eliminate interest and penalties (don't have any YET LOL) and you pay them one payment instead of paying on the cards. One person told me they dealt with an org like this and the combined payment was actually higher than what they were paying seperately, so that would be a waste. One of these companies got some bad press. I think it was Ameri****. Apparently they were not paying out as much as they kept. That is kind of the reason I wondered if anyone tried any of these.

I was wrong. This is what I pulled up the other day. http://www.bbc.edu/foundation/Money_Sense/2000/10202000.pdf

BS, I've used those "low interest" credit card offers and they certainly helped. They offered 2% interest and I could transfer my bills from other credit cards that were charging a high interest (one was 18%!)over to the lower interest one. I still maintained paying as much as I could each month.
Altho it was a temoporary offer lasting the first yr only I ended up getting other offers of the same kind from other credit card companies and wouldn't hesitate to take them up on it.
Not the info you were looking for but hopefully it's a bit helpful.

Michele, we are in debt consolidation. With CCCS (Consumer Credit Counseling Services) , http://www.cccsatl.org/ . I had run up so many medical bills and then I couldn't work anymore because of the pain. We had about a huge amount in medical bills and one credit card I think. We pay much much less a month due to their plan and we pay them $15 a month to take care of it for us. The interest on all stopped and so did late fees, phone calls and all. The $15 is voluntary, you don't have to give them anything, they will do it for free, but I couldn't do that. You can do everything over the internet or the phone.
Our plan is for 3 years and all that will be paid. I couldn't ask for a nicer company, and they are on the total up and up. They really do just want people to get out of debt.

oh, and btw, they weren't the first company we contacted and some were outrageous. You do have to be careful who you sign with. that's why I did my homework and called around first. this one is non-profit, they all aren't.

Badseed, I know there is a credit counseling service that I believe is funded by the gov. or state and I have never used this, but I had a friend who did this about six years ago, and came out okay. She said it did not cost anything to talk, but you need to have all your debt, payoffs, payments and all the infor when you go to the appointment. Give them a try; if it is free, and you don't have to do it, what can it hurt? Right now, the mortgage rates are cheap and mortgage companies are competing for your business, you may look into refinancing your home, at a cheper interest and may get enough to pay off your debt at the same payment you are making now. Again, just get on that phone and see what is what. Nothing worse than worry about bills. I think we have all been there at one time or another. Keep your chin up and know everything in the long run usually works out okay.

Thanks you guys!! Thanks to those that are emailing me too. We had talked to CCCS before but you had to go into the office for an appt. and not bring kids. That isn't possible. I will check into doing in online or over the phone. :) Thanks!!!

I never had to go in, been with them 2 years. there somehow are more than one CCCS, I looked up the link with the one we're signed with to make sure.

A friend is really happy with CCCS and he did it over the internet. They got all late charges and interest either dropped or cut down greatly. Another friend is doing it too and they are very happy and seem to have a lot more disposable income now. Both families were in trouble because of layoffs and one is laid off again and they adjusted the payment to fit his unemployment payments after rent and utilities. Good luck. Love ya, Lani

I did send them an email requesting info. We'll see what comes of it.
Thanks again!!
Michele

This sounds like a really great idea. I've often wondered about it but never looked into it. I wonder what this looks like on a credit report? Would it affect your ability to get a loan or mortgage?

it could, but it's not as bad as being late with everything. and at least you're trying.

I'm not to the point of being late, I just hate seeing all that $$ in interest going down the tubes. DH was out of work for nearly 2 years and the credit cards really got racked up. We pretty much lived off of them! Before that I had zero balances on all of them each month. DH has been back working now & I take huge chunks off the balances each month, I was just wondering about a quicker, cheaper way.

Sometimes you can call your credit card companies and tell them you are going to transfer your balance to a competitor if they can't give you a better interest rate. If you get anything in the mail quoting you a lower interest rate, grab your phone and call your credit card company - tell them you have an offer in your hand. What will they offer you in order to keep your business?

CNN article on this: http://money.cnn.com/2002/05/20/pf/banking/q_rates_negotiate/

Clark Howard is a wonderful site for consumer info: http://www.clarkhoward.com

This is especially interesting: http://clarkhoward.com/library/tips/credit_problems.html -- Pay your credit cards off 75% faster by paying half your regular payment twice a month.

Kimberley, I just looked at the last link you provided and one of the major ones was to check your credit card statement. VERY IMPORTANT!

A few years ago I got my VISA statement and there was over $400 charged on it that I didn't have any idea about. Mostly flowers, 1-800-FLOWERS. The credit card company cancelled my current number and issued a different one while they investigated it and I didn't have to pay those charges. Had I not been paying attention, I would have probably been paying for someone elses charges for months!

Just in the last month, I had a double charge on my VISA statement to paypal for something I bought off ebay. I called and they told me to write to them, so it would be documented. I got a notice last week that paypal had credited back the extra payment and it would show up on my next statement.

You do have to look over every statement very carefully, or you might end up funding someone else.