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Credit counseling agencies!

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bubbles0605
Regular Contributor

Credit counseling agencies!

I have been with one for 1 and half years now. My problem is it is costing me 230 bi-weekly for 3 cc, the total amount I owe is about 15000. This is a real problem to come up with every 2 weeks. My question is , can i send the money directly to the cc's and drop the credit counselor co.?? Will the cc's try and take me to court? I really want to avoid this part if i can.
I dont like that I get no statements or anything from the cc's anymore, so i never know where i stand unless i go into the counselor and ask for an update. Does this sound strange to you?
I would like to get to sending the cc's $100 each/month but not too sure how to go about this.
Anyone have any exp with this and can help?
 
Thanks a ton!
Starting Exp-545, TU-531,EQ-515
DH starting Exp-503,TU-486,EQ-470
short term goal: mine-600, DH-550
Message 1 of 9
8 REPLIES 8
fishbjc
Senior Contributor

Re: Credit counseling agencies!

I have BofA included in a CCCS.  I receive monthly statements direct from BofA.
 
If you drop the CCCS, your interest rates will probably revert to the former interests.
 
I sent BofA an additional payment each month (the interest), I pay them direct.
 
If your CCCS is NOT providing you with the proper paperwork...there's a potential problem there.
 
Have you checked your reports to make SURE the creditors are being paid properly?
 
I put $10,000 of debt into CCCS for five years...the monthly payment is $225.00 inlcuding $15
maintenance fee monthly.
 
What are your current interest rates????
 
 
 
 
Message 2 of 9
Focus
Valued Member

Re: Credit counseling agencies!

I used a CCCS years ago during my first bout of bad debt. For 15000 debt your payments seem normal. However, if you're unable to make the payments, the first thing you should do is tell that to the CCCS. They may not reduce your payments as low as you want, however they may be reduced some. The CC companies no longer sent statements to me either after I went to the CCCS. However, your CCCS should be sending you statement summaries advising you of how the payment were disbursed and how much you still owe on the accounts. Assuming your CCCS is sending the money to the CC companies as agreed, I would suggest you stay with them and let them know you are having trouble making the payments. Dropping them should be your last resort, as the CC companies may send you straight to collections as you've breached the agreement made between the CCCS and the CC company on your behalf. 
8-18-08 / EQ 791 - TU 795 - EX 815
9-4-08 / EQ 716 - TU ? - EX ?
Message 3 of 9
bubbles0605
Regular Contributor

Re: Credit counseling agencies!

They cc's are already in collections dept. Also, my interest rate on the cc's are 0%.
230 every 2 weeks is really killing me, i have 2 small kids too.
 
Thanks
Starting Exp-545, TU-531,EQ-515
DH starting Exp-503,TU-486,EQ-470
short term goal: mine-600, DH-550
Message 4 of 9
fishbjc
Senior Contributor

Re: Credit counseling agencies!

It's going to kill you a lot worse when you're making these payments and most of it goes toward interest....that's what will probably happen if you dump the CCCS.
 
Can you bring in some extra $$$ or cut the budget???
Message 5 of 9
bubbles0605
Regular Contributor

Re: Credit counseling agencies!

I have been working more hours and trying to cut the budget, but it doesnt seem to help a ton when your already behind the 8 ball. ugh!
Alright,I have been talked to into staying with the cca.
Thanks everyone for all your input.
 
Starting Exp-545, TU-531,EQ-515
DH starting Exp-503,TU-486,EQ-470
short term goal: mine-600, DH-550
Message 6 of 9
Anonymous
Not applicable

Re: Credit counseling agencies!

I've been with a CCA for just under 4 years.  I started with $31,000+ of debt and am now down to owing just over $6,000.  They send me a report each month, but I still get bills from my cc companies, showing how my CCA payments are being applied.  It has been tough, but I'm committed to seeing this through.
 
I would suggest that you have a chat with your CCA.  I was going to opt out of my program because the payment was too high early on, but they worked with me to drop it.  This will increase the time it takes to pay off the debt, but it is very worth it.   You so don't want those APRs to go back up!  Please consider giving them a call....good luck!
Message 7 of 9
bubbles0605
Regular Contributor

Re: Credit counseling agencies!

I called them the other day and have decided to stay with them. I would hate to have the interests rates go back up, they are all (3 cc) at 0% right now, and I ahve been with them for about a yr and a half. When I had an update meeting with them back in May I was already down $5000, so maybe it is worth the high payments right now.
I intend to take our tax return in January 09 and try and settle with them. Does anyone agree that this is a good idea?
Starting Exp-545, TU-531,EQ-515
DH starting Exp-503,TU-486,EQ-470
short term goal: mine-600, DH-550
Message 8 of 9
Focus
Valued Member

Re: Credit counseling agencies!

A better idea would be apply the tax return to your debts via your CCCS. Successful completion of a Debt Management Program usually results in credit offers which will help you start to rebuild your credit.
8-18-08 / EQ 791 - TU 795 - EX 815
9-4-08 / EQ 716 - TU ? - EX ?
Message 9 of 9
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