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Can a credit counselor help in my situation?

MyFicoAddict
Frequent Contributor

Re: Can a credit counselor help in my situation?

Ooops.... did NOT see that this post was from 2008! - My bad.

 

Anyway - Gotagoal - same advice as above - if you have the savings - just do the savings secured loan - but I know 24K is a lot. DMP will definately hurt, maybe a signature loan from a CU - this requires you to actually call and speak with the underwriter and they may require you to close some of the cards, but atleast you will have one payment at a lower interest and save the fees for DMP.

 

P.S - there is no rule that you cant call the CCC's and re open accounts when you have paid off the signature loan...

 

Good luck.

Aim to be fiscally and physically fit...
EQ - 723 FICO as of Aug 2010
TU - 757 FICO as of Sept 2010
EX - 742 FICO as of Oct 2010 (PSECU)
Message 11 of 15
marty56
Super Contributor

Re: Can a credit counselor help in my situation?

While a DMP company charges a monthly fee, even at say $50 a month, you probably won't be able to just call a CCC and get them to lower their interest rates.

 

Debt consolidation loans usually fail since most people don't change their spending ways and using a DMP might save money in interest in the long run.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 12 of 15
MyFicoAddict
Frequent Contributor

Re: Can a credit counselor help in my situation?

Yes, this is your point of view. You have had success using this method, however, I have had success without a DMP and others that I know. $50 a month? really - wow that is amazingly wishful - again, even if it is 50 a month - this is money that the person can put into his/her own savings account - or better yeat - extra 50 to pay off the debt even quicker - every little bit helps. I understand that a debt consolidation loan can soemtimes lead to the person being stuck if they dont change their own ways, thus, key piece of my advice was that they should close the cards and change the spending habits.

 

I am sorry but, any blood sucker like a DMP who sucks money for doing what you can do yourself is ridiculous - besides - most times they mess up your credit anyway - it all depends on who you talk to and how you talk to when you call the bank to ask for a repayment plan....

Aim to be fiscally and physically fit...
EQ - 723 FICO as of Aug 2010
TU - 757 FICO as of Sept 2010
EX - 742 FICO as of Oct 2010 (PSECU)
Message 13 of 15
haulingthescoreup
Moderator Emerita

Re: Can a credit counselor help in my situation?

Well, there's a difference between a DMP and a DNP (debt negotiation program.)

 

A lot of it depends on how one got into trouble in the first place. If it was one of those perfect storms of bad economy, bad health, and bad decisions resulting in a ton of debt, then it might well be possible to do on one's own, depending on whether the banks are wiling to drop their interest rates to where you can actually attack the principal.

 

But if the debt is the result of some sort of emotional use of credit, it's not realistic to tell someone to pull up their socks and behave themselves. They may well need to hand it over to someone else and stay completely away from the whole issue, like an alcoholic realizing that he/she simply can't drink anything at all, period. With time, they might well be able to do that hard personal work so that they can eventually use credit responsibly. Or they might find that in fact, they just need to stay away from it forever.

 

This is one of those walk-a-mile-in-someone-else's-moccasins, I think.

 

And again, from a practical viewpoint, the difference might well be whether the APR's can be gotten to a manageable figure, either by the DMP or by the individual. When you can't do much more than pay the interest month after month after month, you're not ever going to get out of debt.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 14 of 15
marty56
Super Contributor

Re: Can a credit counselor help in my situation?


@MyFicoAddict wrote:

I am sorry but, any blood sucker like a DMP who sucks money for doing what you can do yourself is ridiculous - besides - most times they mess up your credit anyway - it all depends on who you talk to and how you talk to when you call the bank to ask for a repayment plan....


I  don't think you understand what a DMP company is. They are a non-profit company who's job is to negotiate lower interest rates on your CCs.  Nothing more.  The average rate they get is 10% and a $50 monthly fee is high the high side.  On the credit mess up issue, again you are 100% wrong also.

Anyone here care to bet on BofA or Citibank lowering a 15k balance at 22% to 10% or 0%.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 15 of 15
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