CREDIT COUNSELING SERVICES-PLEASE REPLY

[kee17]

I am trying to pay off my credit cards with a credit counseling service called CESI.  I pay them $135 a month to send out minimum payments to my creditors, and to stop the constant phone calls to my home and work.

My question is, do you think this is effecting my credit?  I looked on my credit report and noticed that it does list on each of my creditors that I am with a credit counseling agency.  Besides me being late with my car payments, could this have an effect on my credit as well.

Or is it a good idea for me to even be signed up with a credit counseling service.  I feel that I can take that $135 a month and pay atleast one credit card off at a time.  Please advise.

[Anonymous]

I think this should be in the General Credit section.
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If you can settle the debt with your creditors, negotiate a monthly payment plan, would be better, than going with counseling. IMO

I graduated from credit counseling in 2006. I was in the program for 4 years. My FAKO scores before the program was around mid 500's. While in the program, went up to 625, a month after completion of the program my scores dropped to where I started off mid-500s.

I paid $364/month for their service of which $39 was their counseling fee. I was glad my debt was paid off but didn't see the score drop coming. Called the counselors and non of them could give me an answer until I found a reasonable explanation in the forums.

When counseling manages your credit, it is considered a positive step in fixing your credit. When you are done with the program, you are given the chance to manage your own credit again, the risk factor increases making your score drop. I don't know if this is true but it does make some sense.

Word of caution: Watch out for scams!

[demi]

I have been in a Debt Management Plan for 3 1/2 years (1 payment left, yippie)...I paid $35 a month for the service, paid off 1227 a month, most were not minimum balances.  I think you can do much better then what they are doing for you.  I had a lot of cards, was recovering from major back surgery, and deeply embarrsed about my situation, me trying to negotiate was not going to work.  If you have the will to do it, try, but only if you are really committed.  Otherwise, find a better dmp...I used Takechargeamerica, others on the board will pipe in with others.  Be carefull who you are using...this doesn't sound like a debt management plan.