get out of debt companies

[66 mustang]

sounds too good to be true and that seems to mean it is too good to be true. has anyone tried one of these companies that claim to reduce your credit card debt by half or more?

[T-BONE]

I looked into one years ago, but rather than the 3 payments I was making to the CC companies in the amount of $$$ each, the debt company combined them and I would have been paying over $180 a month more to just them. I'm not sure how their math works...

[Chris]

My ex wife did a while ago. It does work but it depends on how long you want to pay the monthly payments to them. They do the negotiating for you and usually settle for 30-50 cents on the dollar depending on which company. They will let you know how much each company will settle for and whether or not you wish to proceed. Only catch though: It goes on your credit reports as "paid but not as agreed" and adversely affects your credit score for a few years until you can get your score back up. If you have $10,000 or more in debt, it's worth it. if not, try to do it on your own because it really doesn't work for you. Hope this helps.

[Li§a]

If you have to use this type of service, you're usually better off using a non-profit Consumer Credit Counseling Service. Most creditors will work with you directly, however. A phone call to them to see if they are willing to work out a different payment plan (rather than default on the note) is sometimes all it takes.

[LV KIX]

If you have to use this type of service, you're usually better off using a non-profit Consumer Credit Counseling Service. Most creditors will work with you directly, however. A phone call to them to see if they are willing to work out a different payment plan (rather than default on the note) is sometimes all it takes.

 

I've been on the other side of this issue... While managing a laon company in Vegas these consumer credit counseling services would always call us and try to get reduced rates for our clients. Sometimes we would accept the terms...other times we wouldn't. Just depended on how much the couseling company offered to pay. Many creditors will not accept payments from these type of companies. Word to the wise... if you use a Consumer Credit Counseling Service, make sure that ALL of your creditors will work with the company.

 

The above advice is good... Call your creditors yourself. If they would be willing to work with a Consumer Credit Counseling Service, they would more then likely be willing to work with you. As mentioned by Lisa, if you do use a Consumer Credit Counseling Service make sure it is a non-profit organization. If your credit score is at all important to you...avoid these Consumer Credit Counseling Services. Make sure you understand everything.

 

Another thing... if you fail to make your full payment to a Consumer Credit Counseling Service all of the reductions from your creditors are off. Many creditors will add all late fees allowed by law and send your account to a collection service right away. A good collection company will have wages garnished in a matter of 2 months if you are not making payments.

 

This advice comming from someone who dealt with these companies nearly every day. Long-winded...but I hope this helps alittle.

[Blue Charvel]

If you have to use this type of service, you're usually better off using a non-profit Consumer Credit Counseling Service. Most creditors will work with you directly, however. A phone call to them to see if they are willing to work out a different payment plan (rather than default on the note) is sometimes all it takes.

 

I've been on the other side of this issue... While managing a laon company in Vegas these consumer credit counseling services would always call us and try to get reduced rates for our clients. Sometimes we would accept the terms...other times we wouldn't. Just depended on how much the couseling company offered to pay. Many creditors will not accept payments from these type of companies. Word to the wise... if you use a Consumer Credit Counseling Service, make sure that ALL of your creditors will work with the company.

 

The above advice is good... Call your creditors yourself. If they would be willing to work with a Consumer Credit Counseling Service, they would more then likely be willing to work with you. As mentioned by Lisa, if you do use a Consumer Credit Counseling Service make sure it is a non-profit organization. If your credit score is at all important to you...avoid these Consumer Credit Counseling Services. Make sure you understand everything.

 

Another thing... if you fail to make your full payment to a Consumer Credit Counseling Service all of the reductions from your creditors are off. Many creditors will add all late fees allowed by law and send your account to a collection service right away. A good collection company will have wages garnished in a matter of 2 months if you are not making payments.

 

This advice comming from someone who dealt with these companies nearly every day. Long-winded...but I hope this helps alittle.

Actually that was awesome, not long winded. I've been tempted to call these places a couple of times. We're paying down our debts, but I'd like to do it faster and for less money. Good to know what the repercussions are and/or could be...

[66 mustang]

If you have to use this type of service, you're usually better off using a non-profit Consumer Credit Counseling Service. Most creditors will work with you directly, however. A phone call to them to see if they are willing to work out a different payment plan (rather than default on the note) is sometimes all it takes.

 

I've been on the other side of this issue... While managing a laon company in Vegas these consumer credit counseling services would always call us and try to get reduced rates for our clients. Sometimes we would accept the terms...other times we wouldn't. Just depended on how much the couseling company offered to pay. Many creditors will not accept payments from these type of companies. Word to the wise... if you use a Consumer Credit Counseling Service, make sure that ALL of your creditors will work with the company.

 

The above advice is good... Call your creditors yourself. If they would be willing to work with a Consumer Credit Counseling Service, they would more then likely be willing to work with you. As mentioned by Lisa, if you do use a Consumer Credit Counseling Service make sure it is a non-profit organization. If your credit score is at all important to you...avoid these Consumer Credit Counseling Services. Make sure you understand everything.

 

Another thing... if you fail to make your full payment to a Consumer Credit Counseling Service all of the reductions from your creditors are off. Many creditors will add all late fees allowed by law and send your account to a collection service right away. A good collection company will have wages garnished in a matter of 2 months if you are not making payments.

 

This advice comming from someone who dealt with these companies nearly every day. Long-winded...but I hope this helps alittle.

Actually that was awesome, not long winded. I've been tempted to call these places a couple of times. We're paying down our debts, but I'd like to do it faster and for less money. Good to know what the repercussions are and/or could be...

 

same here. thanks for all the info folks

[brayndeded]

I guess I will play my "bad guy" card here...but in a good way. I work for a collection agency...have done collections for 15 years, and I can tell you, its easier on you to just work out payments on your own. Most of these places require you to pay in quite a bit a month, but then only pay out on average about $20 a month to the places you owe...therefore not really helping you get the debts paid any faster. Most collection agencys dont like to work with them because we never know when we will get a payment from them. We might get $20 one month, then nothing the next and then $17 the next month, therefore, from a collection agency standpoint, we cant stop any intrest that is added to the debt. Whereas, if you on your own call the places you owe, and set a secured monthly payment, then you are 99% of the time better off. Collection agencys arent all a bunch of assholes....now granted...I work with A HOLE bunch of them, but for the most part, if someone calls and flashes money at them, it seems to bring out the nice in them. (I have never been the type to play the A HOLE type person). Im to easy going. But I have went round and round many a time with these 'get out of debt places'. You can do it all on your own. Why send your money to them only to find out they sock it away in their bank for anywhere from 2 weeks to a month before they mail your payments for you? (thats how they make their money...by putting YOUR money in their bank account.)

just a bit of info for you there. and you can also get 1 free credit report each year and call the places you owe from that...AND...(dont tell them I told you this)...but most collection places will settle a debt with you if you play your cards right. be nice about it, tell them you have 'X' amount of money and want to clean things up, going down your list and was hoping you could settle this debt for a fraction of what is owed.

 

ok, enough of work crap...back to rockin and rollin!!

[66 mustang]

so if I call a credit cousling service I will be paying them instead of the people I owe? I'm getting to a point where I have to do something

[Chris]

so if I call a credit cousling service I will be paying them instead of the people I owe? I'm getting to a point where I have to do something

Yes. Like I said above, they call your credit card companies and negotiate for you. You pay them a monthly amount and they take that amount and disperse it to your creditors for you. Again, there are repercussions.

[brayndeded]

these places are getting worse. in my field...collections...we have seen alot of fraud places jump up in the last 6 months. heres a clue...when a guy who sounds like hes from india calls you and says his name is 'adam jones' or adam walker...somethings not right. most card companies, collection agencies and payday loan places will work with you on these same type payments. these 'get out of debt' places sometimes require you to pay them up to $1000 (in some cases and companies) before they start paying your debts for you. you could start may 1st, thinking your debts will get paid on in may, but reality says they wont get a dime for 90 days. so you still get calls from the fools i work with cuz we dont see that money. then everyone gets mad and thats no fun. meanwhile your money sits in cccs,cambridge,pdl,langhorne,...etc bank account and they earn intrest on your money.

now with the tough times everyone on earth is going through these days, its a great time to make those calls yourself and work out payments, cuz those guys need to make money too and feed their kids, so they are more likely these days to work out monthly payments to fit your budget instead of hammering you for payment in full. (which i always thought was stupid to try to force on people, cuz in my book, if you HAD payment in full...most likely you would have paid it by now). or in some cases on this site...bought a shitload of awesome cd's!!

try to save yourself a bit of cash first too,and when you talk to these places, always ask if theres a way to do a settlement...dont hurt to try.

good luck

[metaltrekman]

I used Greenpath years ago. http://www.greenpath.com/ They helped us out a lot. All bills consolidated and I paid them a lump sum every two weeks I think it was. I would recommend them to anyone that needed the help.